If your small to medium-size business is growing, so are the duties and responsibilities of each department, including payroll and HR. When it comes to payroll vs. HR, what is the difference and how do the two work together? In this article, we'll look at how these separate functions are essential for effective people management and the smooth functioning of a business.
Payroll administration is processing, managing and administering the payroll functions of a company. In most organizations, payroll functions are handled by either the finance or human resources department and/or payroll professionals. Payroll functions include:
Payroll professionals perform multiple critical services in an organization. A payroll department ensures the organization pays employees accurately, compliantly and on time, which is essential for maintaining employee morale, motivation and satisfaction. Payroll professionals also play a critical role in maintaining wage and hour compliance. They provide the support and expertise to help ensure compliance with rules and requirements governing pay.
In addition, payroll data and records provide valuable insights for financial reporting, budgeting and strategic decision-making, contributing to the organization's overall financial health and stability.
The human resources department is a key part of a company, supporting and managing its most valuable asset: its people. Human resources covers a wide range of responsibilities aimed at managing and supporting the organization's workforce. These functions can include:
HR professionals play a strategic role in shaping the company's future by maximizing the potential of its workforce. This includes workforce planning, organizational development, and promoting diversity and inclusion. They're not just about managing people; they're about cultivating a harmonious, productive, engaging, and fulfilling employee experience and work culture. This contributes to the long-term success and sustainability of the organization.
When it comes to payroll vs. HR, there's actually no "versus." They're allies. Here are some ways these two departments can coordinate to maintain smooth operations for your business:
Considering the relationship between payroll and HR departments, outsourcing to one comprehensive solution to integrate both can be a lifesaver. It can be particularly helpful for small to medium-size businesses that are running short on time and resources to run these departments effectively.
TriNet provides comprehensive HR solution, helping clients streamline critical HR processes for their organizations of all sizes. Also, our robust platform provides payroll processing, tax filing and benefits administration alongside a suite of other HR services. Find out how TriNet's payroll processing services and HR functions can help your business to focus more on its growth, is cost effective, and positions you for success.
This communication is for informational purposes only, is not legal, tax or accounting advice, and is not an offer to sell, buy or procure insurance.