🤣Well, let's take a vote. Does payroll belong with HR or Accounting?

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Payroll belongs to payroll. Isn’t it normal for most larger companies to have someone specially for payroll within their compensation team?

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Thanks. Now I know I’m not the biggest idiot lol

Who cares

It depends on the company’s size. If the company is small, it is not uncommon for HR personnel to also do payroll.

I've seen different sized orgs do it differently. Small places usually stick it with HR or accounting based on team size. Medium to larger size places have a separate person or team handle it.

Ideally, I think it's handled separately with HR working with them on the people side of things and then accounting booking the entries and reconciling.

Well I don’t know… accounting is going to post the entry to the GL anyway, but they don’t need to deal with the “people” part of it like onboarding, pay rate changes, etc., I’d say it’s mostly an HR thing but accounting will ensure the #s are right in the end?

Organizationally it could be either and that’s fine but functionally needs to be operating somewhere between the two. To be effective and avoid burnout Payroll needs to stay out of managing employee data and also needs to stay out of Payroll accounting.

I wish it were accounting. It is always a headache when it's an HR role.

HR initiates changes and has the permanent files of EEs. Accounting makes the changes to the payroll systems and ensures every change has back up, every change order is initiated. HR advises and signs EEs up for benefits. Accounting makes sure deductions are made and they match the invoices from the insurance company. Duties must be segregated.

I once worked for a small company that didn’t have an HR department. I was responsible for the payroll and worked in the accounting department.

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