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HR and Payroll Merging

What is the magic formula for HR and Payroll getting along? :roll: Are most companies merging Payroll as HR personnel or is Payroll being managed by Accounting? I would like some reasoning behind the choices made by your company. Thanks in advance for any comments set forth.


  • The magic formula is ... there is no magic formula. I have been in payroll for over 25 years now and unfortunately, I haven't seen to many payroll departments that worked in harmony with H/R. I worked for ADP as a payroll and H/R consultant, for many years and I can tell you that when I would meet with clients, H/R would be on one side of the room and payroll on the other. You could just feel the tension and catch the dirty looks out of the corner of your eye. Here's my opinion. As payroll people we are very detail and deadline orientated. (For good reason) For some reason, H/R staff normally does not have the same mentality. I have been on the payroll administration side for the last 15 years or so and the walls are still up. It seems like no matter how much advance warning payroll would give the H/R folks concerning the year-end deadlines and cutoffs, it would never fail, they would be late. Always wondered if they did this on purpose to show they were more important ?? Where I am working now, the open enrollment forms should have been into payroll 2 weeks ago and we still do not have many of them. We get every excuse in the book from, "It was Thanskgiving" , "I was off on Monday" or "I wasn't feeling well so I couldn't come in". I just want to tell them, "hey in case you didn't know, it was Thanskgiving for payroll too" We still got everyone paid in time. Maybe they need to stay a little late in the evening, or maybe even come in over the weekend. ( God knows payroll does)

    I have worked in companies when they was a Shared Services Department, that had payroll and Hr together. It is a good thought, but really didn't work out, so it was disbanded. The H/R staff would go to lunch from 12 to 1 and walk out the door at 5, come hell or high water.

    If any H/R people are reading this, I do not mean any disrespect, as I have met a few good H/R people in the last 25 years :-)
  • wow - I love this thread and this board! Truer words have never been spoken!!
  • I guess I am in the minority....I am in payroll and HR and myself have always meshed well together. They have always understood the deadlines and have always had my back when needed. I am very lucky in that sense. It is hard for me to imagine not being that way.
  • Well, these postings have answered alot of my questions . . . because . . . I have worked in an HR dept for 11 years as the Benefits/Comp Manager. I am responsible for the payroll entries that make the pay rates and the insurance deductions happen for 1200 staff (essentially the Payroll function for these is handled by me). I get along well with the Payroll staff . . .but have always felt a big divide between me and the other HR staff who do not seem to understand why I have to be so particular with things, worrying over the ever-looming payroll deadlines (and the insurance company deadlines). I'm always the one here long after hours when others have gone home for their Christmas holiday, etc. Now I understand it's not just me! Evidently I am a Payroll person residing in a HR dept!
  • I have worked in HR for over 25 years and have only had a few problems with Payroll.

    Problems begin when individuals are hired in HR that have no experience or understanding as to what HR is really suppose to do for the company and it's employees. Most states have laws and time limits as to when and how an employee is to be paid and it is up to HR to make sure supervisors and Payroll understands these time limits and laws. Making checks outside the regular payperiod seems to really ruffle the feathers but that can't be helped sometimes.

    So in order to have a good relationship between the two deparments it is important to have complete knowledge and understanding of how each department depends on each other and respect that need. Makes for less mistakes and properly paid employees.

    P.S. I currently work in an HR office that does leave at five but then so does the Payroll Deparment. Boy are the pay periods strange so that we all can leave at 5.
  • I've had the experience to work in Payroll under HR and under Finance.

    In my personal experiences, when I worked in Payroll in HR, we got along well, and there was less of a divide than when Payroll is in Accounting/Finance. In the payroll departments where we were finance controlled, the divide with HR was greater - and in both situations payroll/finance was in a different building, which doesn't help communcation problems.

    One complaint about Finance too is they focus on the bottom line, not so much correct Rules, Regulations, and pay issues (in my experiences) - Or education to the payroll department.

    In the time I worked under the HR umbrella, there was more of a focus on learning and understanding the role within the company, and how it worked together...rather than just the bottom line. :roll:
  • Payroll and HR together

    My experience working with payroll and HR functions in a large company is that these interdependent functions need to be functionally separate yet integrated on a systems level. There are just too many subjects that must have interdependencies for things to be done any other way. Some easy examples are: Employee enrollment periods for insurance eligibility and employee deductions must be coordinated between HR and payroll. Raises and overtime policies must be coordinated. Garnishments, IRS levies and court orders like child support have HR and payroll impacts.

    For small to midsized companies it is more of a challenge. Many outsource their payroll (to ADP or other payroll service bureau) but unfortunately still retain the HR function in house. These functions in many ways are so interdependent that it makes business sense to outsource both the payroll and HR functions to a single service provider that covers these areas and provides insurance offerings as well. Professional Employer organizations or PEOs offer a full suite of services including payroll, regulatory compliance, risk management, human resources support, health insurance and retirement plans for small to midsized companies. . To learn more about Professional Employer Organization or PEO visit
  • Jim-blogger, please find a more appropriate forum for your advertising.
  • I work under Accounting but have plenty of interaction with HR.

    There is a magic formula ... it's just not usually available ..... :roll:

    I think the trick is to encourage both sides to understand the other. HR needs to understand that payroll MUST be allowed to be definate and exact in performing it's duties. Accounting needs to understand that HR MUST be allowed to make decisions based on needs and whims. The trick is to make these departments come to a happy medium. An unhapppy medium will do ... as long as a medium is found.

    Careful and thoughtful and LUCKY payroll people can make this happen .. sometimes. :?
  • Can't we SPAM his address he left ..???
  • Best HRIS system will keep employee's master data with security and process it with minimal error.
    Apart from this such type of investement in a software will make your work easy and one can be more focused towards business operations.