The Difference Between Human Resource (HR) and Payroll
Payroll services and human resource (HR) functions are an essential part of any type of business. However, distinguishing between HR and payroll can become challenging because, most of the time, both of them are overlapping and working with each other.
The purpose of this article is to differentiate between HR functions and payroll services in a clear and comprehensive manner.
What is the Difference Between Payroll & HR?
The core difference between payroll and HR comes down to the functions that are involved in these processes. Payroll services are concerned with paying the employees on time for the job that they do at a company.
On the other hand, HR is associated with handling the recruitment and onboarding process to ensure suitable candidates are hired for different jobs at an organization.
There are many situations in which both payroll and HR departments have to be in direct contact, so streamline the business processes and ensure maximum efficiency of the business. Accounting firms in Singapore provide professional payroll services and HR services to help different types of businesses to function smoothly.
The difference between payroll services and HR can be made clearer by discussing the functions of each of these departments:
What are Payroll Functions?
The concept of payroll management has greatly evolved with advancements in technology. Initially, payroll was only considered to be the list of employees that you need to pay in your company.
With great improvements in technology and the evolving complexity of the businesses, the payroll functions have also increased.
Nowadays, modern payroll management systems in business are required to ensure timely distribution of salaries and also consider other important factors like employment laws, taxation, and any additional bonuses.
The payroll services are closely associated with the accounts department, so such services are also covered by accounting firms in Singapore.
What Are the HR Functions?
The primary goal of the HR department of any organization is to recruit new staff for the business.
It is the responsibility of the HR department to ensure suitable recruitment, and onboarding practices are implemented to make sure that the best people are hired in your company and maximum efforts are being made to reduce the turnover rate.
Moreover, HR is also responsible for implementing a strict code of conduct for the employees and eliminating any malpractice from the company.
For this purpose, regular training is often required. It shows that the HR department plays a critical role in enforcing the company policies and ensuring smooth and efficient growth of the business.
Major Differences Between Payroll Services and HR Functions
The payroll functions of your company are typically covered by the finance department. However, many companies even allocate these important functions to the HR department.
In order to make sure that proper payroll management is being performed at your company, you should hire an accounting firm in Singapore that will make sure that proper tax laws and accounting practices are implemented in your business.
On the other hand, the HR department deals with managing the employees and preserving their rights to ensure compliance with federal and state laws.
There are many instances in which the payroll and HR departments work with each other. In fact, in most startups and small-scale businesses, the payroll and HR functions are performed by a single individual.
In companies where these functions are fulfilled by multiple employees, it is important that they communicate with each other to ensure the process has transparency and reliability.
It is quite evident that both payroll and HR functions are interlinked to a great extent. You cannot expect to have a reliable HR department without proper payroll management and vice versa.
In other words, businesses should focus on optimizing the performance of both payroll and HR departments to ensure maximum productivity of the business. Otherwise, the company can get adversely impacted due to improper management of these essential functions.
In a Nutshell
Knowing the exact difference between payroll and HR functions can be confusing for a lot of people because they have more similarities than differences.
However, whatever the type or size of your business might be, you should always make sure that both HR and payroll departments are able to work with each other for the benefit of your business.
Accounting firms provide professional services for all types of companies and industries so that they can outsource their payroll services and HR functions.
In this way, companies can get the benefits of relying on professionals who have years of experience in managing these important business processes.
For more information, feel free to get in touch with us.