What are the responsibilities of HR and payroll teams?

In every organization, the HR payroll function plays a pivotal role in ensuring employees are paid accurately and on time while meeting all compliance requirements. It bridges the gap between human resource management and financial operations of a business. From processing salaries to managing tax deductions, HR payroll responsibilities directly impact employee morale and experience.

In this article, we’ll break down the meaning of HR payroll, its critical roles, and the responsibilities it entails, helping you understand how it shapes a productive and compliant workplace.

What stakeholders do in the HR payroll process

The HR and payroll departments work closely to ensure their employees are onboarded to the company and are paid on time. While HR focuses on employee well-being, training, and development, the payroll team ensures employees are accurately compensated for their contributions.

Simply put, HR oversees policies and practices that employees must follow, while payroll handles the actual processing of salaries. Together, these departments ensure a smooth and efficient employee compensation process within the organization.

Functions of HR within a business

• Recruitment

HR managers handle the recruitment process, from conducting interviews to selecting candidates who align with the organisation’s goals. They also oversee the onboarding process, ensuring new employees have a seamless start and feel supported during their initial days.

• Employee relations

HR managers play a pivotal role in creating a harmonious workplace. They address employee grievances, resolve conflicts, and implement disciplinary actions to maintain a positive and productive environment.

• Training and development programmes

To keep the workforce skilled and aligned with organisational goals, HR in several companies arrange relevant training and development programs. These sessions not only upskill employees but also improve team collaboration and build a culture of continuous learning.

• Compliance

HR is also responsible for ensuring the organisation complies with labour laws and regulations. They develop policies that adhere to legal standards, helping the company stay compliant and avoid potential legal issues.

• Compensation and benefits

In some companies, HR professionals oversee employee CTC and manage benefits like health insurance and flexible benefit plans. By aligning these with industry standards and employee expectations, they help create a great workplace.

• Employee performance

HR monitors employee performance to identify and reward exceptional contributions. Reward and recognition programs boost morale and foster a culture of appreciation, ultimately improving productivity and retaining top talent.

Payroll processing responsibilities

Developing payroll policies and procedures

The payroll team is responsible for defining policies that govern employees’ salaries. This includes deciding the components, such as basic pay, house rent allowance (HRA),leave travel allowance (LTA), and variable pay.

Establishing clear payout procedures is also essential to ensure compliance with regulations.

Calculating monthly salaries

Payroll staff calculates gross salaries by factoring in statutory deductions such as income tax, provident fund, and other applicable deductions. They also ensure unpaid leave is accurately reflected in salary deductions.

Ensuring compliance

The payroll team ensures compliance with labour laws by calculating and deducting contributions such as PF (Provident Fund), professional tax, Labour Welfare Fund (LWF), and TDS (Tax Deducted at Source). Timely remittance of these amounts helps organizations stay compliant with the laws and avoid penalties.

Supporting audits

Companies conduct periodic audit checks to assess their business performance. Payroll department plays a vital role in facilitating these audits by maintaining accurate records of employee expenses and providing actionable insights from them.

Resolving queries

Payroll staff addresses employee and management queries related to salary, deductions, taxes, and other payroll matters. Timely resolution of these queries ensures transparency and prevents communication gaps.

Cross-departmental HR and payroll functions

While HR professionals handle onboarding and hiring, the payroll team ensures salaries are disbursed on time for onboarded employees. Here's how this collaboration benefits employers:

1. HR maintains employee records such as employees’ CTC and leave records, which are essential for payroll to process salaries. The HR team is also responsible for updating payroll about salary revisions, bonuses, incentives, and other benefits.
   By sharing these information within specific timelines, HR and payroll work together to streamline payroll processes and maintain compliance with organizational policies.
2. The HR department establishes and monitors leave and attendance policies while tracking employee attendance over specific periods. Payroll then uses this data to calculate salaries, incorporating LOP leave (Loss of Pay) any overtime hours logged.

How can HR and payroll collaborate seamlessly?

Effective collaboration between HR and payroll is important for smooth salary processing and employee satisfaction. One way to achieve this is by integrating cloud-based payroll software, which is becoming increasingly popular among employers.

Zoho Payroll, a cloud-based payroll software, automates several HR and payroll tasks, enabling your teams to focus on what matters most. Here’s how Zoho Payroll can benefit your HR and payroll teams:

• Automatically calculate salaries, factor in deductions, and deposit them directly into employee bank accounts.
• Digitally distribute salary slips after each pay run and provide employees with a sleek self-service mobile app to access their payroll information.
• Track, approve, and manage employee leave and attendance within a single powerful software.
• Track, approve, and manage employee leave and attendance within a comprehensive payroll software.
• Generate 30+ payroll reports and gain actionable insights into your business expenses.
• Integrate with Zoho Books, our powerful accounting platform and complete payroll accounting.

By adopting software like Zoho Payroll, employers can run payroll with ease, reduce errors, and improve overall efficiency in HR-payroll operations. Designed to be user-friendly and customizable, Zoho Payroll is the practical choice for businesses looking to optimize their processes.

Frequently asked questions