Payroll deals with the payment (Salary, Bonuses) of the employees, whereas Human Resource deals with the employee relation. Even Though both roles are different for the company, they are one of the main reasons behind the increment of productivity.
An organization needs a good employee, where that employee will be hired by the staff in the HR department. The Human Resource Management System hires the employees in a company.
Payroll in a Company
Payroll refers to the payment (salary) of the employees. Not only paying but also the work related to the pay ( balancing and reconciling payroll data, bonuses to the employees, depositing, and reporting taxes). The Payroll department involves reporting the payment, collecting the data of the worker's monthly wages, and verifying the pay data. The department also has to maintain and record the paperwork of new employees and maintain the data for the existing employee's files. Here, the payroll department is also responsible for calculating the employee's overtime, leave, and bonuses.
What will a Payroll Software do?
Payroll Management Software is capable of doing all such works accurately on-time and helps to reduce the workload of the payroll department.
The function of Human Resource
Human Resource Management will support the employees and bring the best from them and will be supportive of the organization. HR’s contribution to the success of the business is foremost important. The work of an HR department is to hire the best employee and to allocate them to the specific job role in their company.
Other works that are related to HR and employees are, HR involves motivating the employees and in training them, and providing some compensation packages such as holiday, midyear bonus award, salary increments, etc.
HR and Payroll In a Company
Many of the HR works are related to the payroll, like increasing the salary, bonuses, benefit deductions, vacation leave.
The Human Resources department has to pay the employees on time. Payment is one of the important roles, where the employee's side except on-time salary, and if the HR fails to do it on time, then the company may face risks by losing a good employee.
Payroll works are not that easy, that it should be worked by the financial department (financial knowledge is involved in this). But many companies fail to do this and handover this work to the HR department. And if HR miscalculated or failed to pay the taxes. Then the Business will fall gradually.
Payroll Services and HR outsourcing will benefit you in making the employees and the HR department staff focus only on the core work. This will gradually increase the productivity of the Organization.