HR Payroll

What Is HR Payroll?

HR payroll is the process of paying employees accurately and on time. It includes calculating salaries, deducting taxes, managing benefits, and issuing payslips. Payroll can be managed by the HR team, outsourced to a vendor, or automated using payroll software.

What Does HR Payroll Include?

1. Gross Pay
   The full amount an employee earns, including base pay, bonuses, overtime, or commissions.
2. Deductions
   Money taken out for taxes, insurance, retirement plans, and other pre/post-tax items.
3. Taxes
   Payroll includes federal and state tax withholdings, Social Security, Medicare, and unemployment taxes.
4. Net Pay
   The final amount the employee receives after all deductions.
5. Record-Keeping
   HR must maintain payroll records for auditing, compliance, and reporting.

How Often Is Payroll Processed?

Companies typically process payroll on one of four schedules:

• Weekly
• Biweekly
• Semi-monthly
• Monthly

Biweekly is the most common in medium to large U.S. businesses. The schedule depends on company policy, location, and compliance rules.

HR Payroll vs Accounting Payroll

• HR payroll manages inputs—like hours worked, leave, and benefits.
• Accounting payroll handles the financial reporting, tax payments, and expense tracking.

Both functions work together to ensure employees are paid properly and records are accurate.

Benefits of Payroll Software

Payroll software automates:

• Salary calculations
• Tax withholdings
• Payslip generation
• Report creation

It also reduces manual errors, improves compliance, and protects sensitive data. Cloud-based systems offer 24/7 access and are easy to scale.

When Should You Outsource Payroll?

Outsourcing payroll is ideal when:

• You lack in-house expertise
• You want to reduce legal risks
• You need to save time on admin work

External providers handle payroll processing, tax filing, and compliance—freeing HR to focus on strategic tasks.

Why Payroll Matters in HR

Payroll is more than just processing payments. It supports:

• Employee trust
• Legal compliance
• Smooth operations
• Data accuracy

Mistakes in payroll can lead to employee dissatisfaction and government penalties. A well-managed payroll system keeps your workforce and your business secure.