A common misconception is that HR specialists handle payroll. To clear this, let’s tackle the difference between the two functions.
Payroll – Refers to the process of tracking time within a pay period and paying employees appropriately for that time worked (including overtime for “non-exempt” employees) or salaries for “exempt” employees, plus bonuses or commissions earned, holiday pay or other paid time off, less any wage deductions, including payroll taxes, health insurance premiums, garnishments, etc. Payroll specialists also ensure your company complies with tax and labor laws related to employee wages.
Human Resource (HR) – Refers to managing people within an organization; hiring and onboarding new employees, motivating tenured employees, developing compensation packages that might include paid time off, bonus awards or salary increments. HR also develops the training programs for new hires and handles disciplinary issues.
Coordination Between Payroll and HR
Many payroll functions directly overlap with HR, so the two must coordinate key areas such as recruitment, maintaining confidentiality of employee data, salary increases, bonuses, benefit deductions and employee termination. Lack of coordination between these departments could cause errors in pay or other misunderstandings that lead to unhappy employees
Payroll calls for skill with numbers, knowledge of tax laws and accounting, while HR relies on people who can handle employees. Many small to medium sized business owners find themselves taking on both rolls. Are you drowning in back-office tasks? Is HR, timekeeping, payroll, tax deposits, filing reports, running background checks, and staying compliant with ever-changing labor laws becoming a heavy burden that diverts your focus from running your business?
Remove the Back-Office Headache
Payroll Vault can free you from most of these burdensome tasks. We are a team of dedicated local professionals who completely understand small business as well as their HR and Payroll needs. What makes us stand out from the rest is our determination to help you succeed, combined with our second-to-none customer support and affordability.
Call now to schedule a free payroll checkup. Outsourcing your Payroll and HR to Payroll Vault will give you peace of mind that those areas of your business are handled correctly. Hiring inhouse payroll and HR specialists could cost you $22-$30 per hour plus benefits. With Payroll Vault you will be assigned a dedicated local Payroll Specialist and HR service provider!