{"id":768,"date":"2022-03-15T04:45:42","date_gmt":"2022-03-15T08:45:42","guid":{"rendered":"https:\/\/www.stubcheck.com\/blog\/?p=768"},"modified":"2023-01-03T04:45:35","modified_gmt":"2023-01-03T09:45:35","slug":"finance-or-human-resources-who-should-handle-your-business-payroll","status":"publish","type":"post","link":"https:\/\/www.stubcheck.com\/blog\/finance-or-human-resources-who-should-handle-your-business-payroll\/","title":{"rendered":"Finance or Human Resources: Who should handle your Business Payroll? Check stub makers"},"content":{"rendered":"<p>Maintaining a timely and efficient payroll system is a salient part of running a business. Technically, this function falls under two departments: human resources (HR) and finance or accounting. So, who should handle the payroll in your establishment? Let us attempt to break things down.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_50 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\" role=\"button\"><label for=\"item-69d2a44997215\" aria-hidden=\"true\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69d2a44997215\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.stubcheck.com\/blog\/finance-or-human-resources-who-should-handle-your-business-payroll\/#Why_is_Payroll_Crucial_for_your_Business\" title=\"Why is Payroll Crucial for your Business?\">Why is Payroll Crucial for your Business?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.stubcheck.com\/blog\/finance-or-human-resources-who-should-handle-your-business-payroll\/#Allocating_Payroll_to_HR_Is_it_Right_for_you\" title=\"Allocating Payroll to HR: Is it Right for you?\">Allocating Payroll to HR: Is it Right for you?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Why_is_Payroll_Crucial_for_your_Business\"><\/span><strong>Why is Payroll Crucial for your Business?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The first reason is obvious: your workforce expects to get paid on time for its services. It is natural to demand compensation for one\u2019s time and effort unless the endeavor is charitable. Your payroll mechanism must roll smoothly to send out paychecks to permanent employees, contractors, freelancers, etc. Using a <a href=\"https:\/\/www.stubcheck.com\/blog\/top-8-payroll-tips-to-run-a-small-business-successfully\/\">free check stub maker<\/a> with calculator can streamline this process month on month.<\/p>\n<p>However, the importance of payroll goes beyond the obvious. It helps your business establish a reputation as a decent, reliable employer. Your team is likelier to improve their productivity and work harder if they feel their efforts are being recognized (read: getting paid on time). In the long run, you will minimize your attrition rate and inculcate a positive environment at the workplace.<\/p>\n<p><a href=\"https:\/\/www.stubcheck.com\/\"><img data-attachment-id=\"769\" data-permalink=\"https:\/\/www.stubcheck.com\/blog\/finance-or-human-resources-who-should-handle-your-business-payroll\/finance-or-human-resources-who-should-handle-your-business-payroll-2\/\" data-orig-file=\"https:\/\/i1.wp.com\/www.stubcheck.com\/blog\/wp-content\/uploads\/2022\/03\/Finance-or-Human-Resources-Who-should-handle-your-Business-Payroll.jpg?fit=1280%2C719&amp;ssl=1\" data-orig-size=\"1280,719\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"Finance-or-Human-Resources- Who should handle your Business Payroll\" data-image-description=\"&lt;p&gt;A pay stub is a component of a paycheck that lists details about the employee&#8217;s pay. It enumerate the wages earned for the pay period and year-to-date payroll. The pay stub additionally shows taxes and other deductions taken out of an employee&#8217;s earnings. And, the pay stub shows the amount the employee genuinely receives (net pay). Check stub maker can immersion a variety of professional and authentic paystub.&lt;\/p&gt;\n\" data-medium-file=\"https:\/\/i1.wp.com\/www.stubcheck.com\/blog\/wp-content\/uploads\/2022\/03\/Finance-or-Human-Resources-Who-should-handle-your-Business-Payroll.jpg?fit=300%2C169&amp;ssl=1\" data-large-file=\"https:\/\/i1.wp.com\/www.stubcheck.com\/blog\/wp-content\/uploads\/2022\/03\/Finance-or-Human-Resources-Who-should-handle-your-Business-Payroll.jpg?fit=640%2C359&amp;ssl=1\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-769\" src=\"https:\/\/i1.wp.com\/www.stubcheck.com\/blog\/wp-content\/uploads\/2022\/03\/Finance-or-Human-Resources-Who-should-handle-your-Business-Payroll.jpg?resize=563%2C316&#038;ssl=1\" alt=\"Why is Payroll Crucial for your Business?\" width=\"563\" height=\"316\" data-wp-pid=\"769\" data-pin-nopin=\"nopin\" srcset=\"https:\/\/i1.wp.com\/www.stubcheck.com\/blog\/wp-content\/uploads\/2022\/03\/Finance-or-Human-Resources-Who-should-handle-your-Business-Payroll.jpg?w=1280&amp;ssl=1 1280w, https:\/\/i1.wp.com\/www.stubcheck.com\/blog\/wp-content\/uploads\/2022\/03\/Finance-or-Human-Resources-Who-should-handle-your-Business-Payroll.jpg?resize=300%2C169&amp;ssl=1 300w, https:\/\/i1.wp.com\/www.stubcheck.com\/blog\/wp-content\/uploads\/2022\/03\/Finance-or-Human-Resources-Who-should-handle-your-Business-Payroll.jpg?resize=1024%2C575&amp;ssl=1 1024w, https:\/\/i1.wp.com\/www.stubcheck.com\/blog\/wp-content\/uploads\/2022\/03\/Finance-or-Human-Resources-Who-should-handle-your-Business-Payroll.jpg?resize=768%2C431&amp;ssl=1 768w, https:\/\/i1.wp.com\/www.stubcheck.com\/blog\/wp-content\/uploads\/2022\/03\/Finance-or-Human-Resources-Who-should-handle-your-Business-Payroll.jpg?resize=1200%2C675&amp;ssl=1 1200w\" sizes=\"(max-width: 563px) 100vw, 563px\" title=\"\" data-recalc-dims=\"1\"><\/a><\/p>\n<p>The need for a steady <a href=\"https:\/\/www.stubcheck.com\/regular-pay-stub.php\">payroll system<\/a> guaranteeing on-time and correct pay to employees is even more vital in this post-pandemic world. More employees are working remotely and have flexible work timings and schedules. They require the reassurance of a secure job to hold them in good stead in these turbulent times.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Allocating_Payroll_to_HR_Is_it_Right_for_you\"><\/span><strong>Allocating Payroll to HR: Is it Right for you?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Here are the main benefits of letting HR manage the payroll for your company:<\/p>\n<ul>\n<li><strong>Your business is an SME (small and medium-sized enterprise):<\/strong> If your organization has less than 250 employees, it gets classified as an SME. For SMEs, the problem of attrition is far lower than for big corporations. It makes sense to let HR handle the job as payroll becomes personalized.<\/li>\n<li><strong>HR understands labor laws and employee benefits:<\/strong> No one has a better understanding of employee benefits like medical allowances, vacation pay, etc., and labor laws at the state and federal level. It is an essential part of payroll for both the company and the employees. Some <a href=\"https:\/\/www.stubcheck.com\/blog\/6-time-saving-tips-for-businesses-with-large-payroll-needs\/\">free check stub makers<\/a> in the market can help you understand the updated laws, minimizing the scope of error.<\/li>\n<li><strong>HR can lend a human touch to payroll: <\/strong>Human resources executives understand subjects like psychology and public relations. It is because HR courses tend to encompass such topics. It makes HR personnel more capable of handling payroll-related grievances.<\/li>\n<li><strong>Confidentiality gets priority:<\/strong> Private and confidential data like performance assessments, medical files, etc., gets handled by human resources. If HR also manages payroll, it limits the risk of private data getting leaked to multiple parties and influencing decisions at the workplace.<\/li>\n<\/ul>\n<h3><strong>Allocating Payroll to Finance: Is it Right for you?<\/strong><\/h3>\n<p>Here are the advantages of allocating payroll to the finance team in your organization:<\/p>\n<ul>\n<li><strong>The size of your business is large: <\/strong>For organizations with more than 250 employees, keeping track of profiles, salaries, etc., while ensuring growth is challenging. If finance holds the reins, things get done faster and more efficiently. Employing an <a href=\"https:\/\/www.stubcheck.com\/blog\/9-warning-signs-your-invoicing-isnt-working-properly-online-paystub-generator\/\">online paystub generator<\/a> like <a href=\"https:\/\/www.stubcheck.com\">StubCheck.com<\/a> can further assist the finance experts in large enterprises. From professional templates to the latest<a href=\"https:\/\/www.stubcheck.com\/w2form2020\"> tax forms<\/a>, you can access it all at your fingertips. It sure beats manual processing!<\/li>\n<li><strong>Salary calculations require expert financial knowledge:<\/strong> Your finance team members have the knowledge needed to compute salaries, taxes, etc. A thorough understanding of accounting, bookkeeping, and financial calculations is a primary part of payroll management.<\/li>\n<li><strong>Payroll is a large chunk of business expenditure: <\/strong>Typically, paying salaries to your staff will take up at least 15% of your revenue. It can be even as high as 40% or more. Letting the finance team manage such a large sum is a safe decision from a business perspective.<\/li>\n<\/ul>\n<h3><strong>Developing a Harmonious Payroll System<\/strong><\/h3>\n<p>The HR and the finance departments make unique contributions to the payroll component of a business. While your finance team will focus on paying the employees on time, human resources prioritize fostering a constructive work environment. Often, the finance head gets viewed as someone who discards plans and overlooks the humane aspect of dealings. The HR head, on the other hand, must struggle to incorporate strategic decision-making into everyday affairs. It is crucial to justify the costs for activities whose results cannot get directly measured.<\/p>\n<p>As the business owner, it should be your prerogative to cultivate a cooperative relationship between the two teams. While developing a coordinated system, you must demarcate clear boundaries without subordinating one department. Placing one under the other for reporting affects the balance of things and leads to power struggles. When the two functions get performed in sync, it bodes well for the health of your business.<\/p>\n<p style=\"text-align: center;\"><a title=\"generate paystub online\" href=\"https:\/\/www.stubcheck.com\/regular-pay-stub.php\">generate paystub online<\/a><\/p>\n<p><strong>Final Word<\/strong><\/p>\n<p>Ultimately, choosing the department to<a href=\"https:\/\/www.usa.gov\/taxes\" rel=\"nofollow noopener\"> handle payroll<\/a> is a decision that deserves detailed thought and consideration. Frequently, the best course is to get the HR and the finance teams to work in mutual harmony. However, your budget or time constraints may limit you to using only one department. In this case, it is best to ensure that the team you choose develops a thorough <a href=\"https:\/\/www.irs.gov\/\" rel=\"nofollow noopener\">understanding of the whole ecosystem<\/a>. Here, periodic training, knowledge-sharing sessions, and internal audits are helpful. The results \u2013 improved employee morale and stable financial health \u2013 will be well worth the effort.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Maintaining a timely and efficient payroll system is a salient part of running a business. Technically, this function falls under two departments: human resources (HR) and finance or accounting. So, who should handle the payroll in your establishment? Let us attempt to break things down. Why is Payroll Crucial for your Business? The first reason [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","jetpack_publicize_message":""},"categories":[13],"tags":[175,174,346,250,216,183,166,18,23,17,273,221,261,348,347],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack-related-posts":[],"jetpack_shortlink":"https:\/\/wp.me\/pdkXKn-co","_links":{"self":[{"href":"https:\/\/www.stubcheck.com\/blog\/wp-json\/wp\/v2\/posts\/768"}],"collection":[{"href":"https:\/\/www.stubcheck.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.stubcheck.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.stubcheck.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.stubcheck.com\/blog\/wp-json\/wp\/v2\/comments?post=768"}],"version-history":[{"count":5,"href":"https:\/\/www.stubcheck.com\/blog\/wp-json\/wp\/v2\/posts\/768\/revisions"}],"predecessor-version":[{"id":925,"href":"https:\/\/www.stubcheck.com\/blog\/wp-json\/wp\/v2\/posts\/768\/revisions\/925"}],"wp:attachment":[{"href":"https:\/\/www.stubcheck.com\/blog\/wp-json\/wp\/v2\/media?parent=768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.stubcheck.com\/blog\/wp-json\/wp\/v2\/categories?post=768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.stubcheck.com\/blog\/wp-json\/wp\/v2\/tags?post=768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}