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3 Reasons Why Payroll Should Live in HR - Not Accounting

Posted by Monaghan, Christian at Monday, 11/26/2012 2:42 pm
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Read the full post on the SharedHR blog.

</br>In which functional department should payroll reside? This question is frequently debated among private employers. The Controller or CFO often wants payroll under accounting for greater control since the accounting function is ultimately responsible for employment transactions and costs. HR argues that payroll should be under the HR group because it has greater interface with time and attendance and employee issues such as leaves; time off, hiring and discipline. Who is right?

Here are three reasons why HR should control the payroll function:

The raw data for payroll relates most to HR. Data for payroll comes from time and attendance, benefits, leaves, garnishments, and special deductions.
Accounting is generally unfamiliar with HR and payroll compliance issues. Payroll compliance is generally viewed as part of HR compliance. Issues such as wage and hour compliance, benefit eligibility, compensation during leaves and separations are heavily involved with HR compliance and HR knows best how to interface with these compliance issues as they relate to payroll.

Read the full post on the SharedHR blog.

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