Payroll Dilemma: Should It Fall Under HR or Finance in Your Organization?

Hello,

I need to know if payroll should be under HR or Finance.

Thank you.

Dear Rosy,

Payroll is a part of HR, and it is linked with financial matters, so it is also related to Finance. It's based on company policy how they choose to organize it.

Hi,

The departments in the organizations are interlinked. The HR department would plan, and the finance department would execute in the case of payroll. For instance, training would be scheduled and implemented by HR under the budgeting of the finance department.

CRK

Payroll has two parts. The first one is earnings, based on actual attendance - including Basic pay, DA, HRA, allowances, PF, and ESI documentation which are also included under HR. The second part consists of deductions like PF, ESI, Professional Tax, TDS, and recovery of loans.

Typically, the earnings part is covered under HR, while the deductions part is managed by the Finance department. However, in small companies without a dedicated HR department, the Finance team oversees the entire payroll process.

Thanks,
VIJAY

Hi,

Payroll is an interlinked function of both departments. Nowadays, few organizations have started to create a particular department consisting of both finance and HR people to handle this function. CRK has correctly said that HR prepares the data based on company policies, and finance executes the data.

Payroll can be part of HR or Finance, depending on the organization's structure, size, and expertise. However, it is a better practice to have payroll as part of HR with close liaison with finance.

Actually, Payroll falls under the Time Office, which is a part of HR. Since Attendance collection is managed by the Time Office, I believe that payroll processing should also be under the HR department.

Hi All,

Could anyone provide the new format for Form 24Q2 filing for the FY 2009-10?

Regards,
Narendra B R.