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Managing Payrolls: Who’s Job It Is… HR or Finance?
Ensuring a smooth flow of payroll process requires sturdy interface between the HR and Finance departments.
Majority of organizations have now realized the significance of employing payroll management software and by which they can leverage multiple benefits such as Budgeting and Tracking of organizational funds dedicated for payroll purposes, compensation for compliance of legal mandates, as well as providing complete compensation details to the employees.
Sustaining a balance between the TWO strategic functions- HR and Finance is indispensable for effectively running the system effectively. It is critical as well as daunting task as it is not the core function of either HR or finance dept., rather it is a collaborative responsibility of both the depts.
This instigates a question “Who is the Real Doer??:- Finance, HR or some Third-party vendor?”
When you do it in-house, it engages a whole lot of you as numerous activities are required to be covered, critical decisions need to be taken and allocating the complete responsibility to a department is practically not possible. While finance dept is required to correctly compute the salaries taking care of tax deductions, fundamental deductions, and compliance with other local laws, on the other hand, HR needs to take care of employees’ pay, incentives, rewards, etc. to keep employee morale high.
Whereas, outsourcing the job to some third-party, though, gives you a dedicated team to look after your payrolls, but has its own set of risks, as you cannot completely rely on outsiders and provide them with complete employee data.
Thus, a collaborative ” HR and Payroll Software “can be the best option for you as it will itself make a balance between the two and at the same will take care of data confidentiality. The administration can also monitor the processing and check if the automated processes are well-executed!