I agree with Dave that Payroll function is not necessarily a HR function.
Salary structure of an employee is also his/her tax tool. Some Benefits, Allowances and Re-imbursements (Fringe Benefits) are not taxable as per income tax rules which can be better interpreted by the finance department or a payroll expert. Employees will try to reduce his/her tax burden and increase savings/take home salary. So from tax perspective, which is the main concern for employee, finance department is in a better position to help/advice the employee.
Secondly, as already mentioned in this thread, from payroll audit perspective finance people are more competent in record keeping and in handling auditors/audit quiries.
So, I feel, ideal situation would be HR giving attendance inputs and finance processing the payroll.
Salary structure of an employee is also his/her tax tool. Some Benefits, Allowances and Re-imbursements (Fringe Benefits) are not taxable as per income tax rules which can be better interpreted by the finance department or a payroll expert. Employees will try to reduce his/her tax burden and increase savings/take home salary. So from tax perspective, which is the main concern for employee, finance department is in a better position to help/advice the employee.
Secondly, as already mentioned in this thread, from payroll audit perspective finance people are more competent in record keeping and in handling auditors/audit quiries.
So, I feel, ideal situation would be HR giving attendance inputs and finance processing the payroll.