As we know that payroll refers to the processing of salaries of the employees it also involves the adherence to statutory compliances to be paid to the government etc. Payroll is considered as an internal part of the organization as the process is recurring monthly, weekly, or as per the policy.
Generally, in many large organizations, the payroll is outsourced to the agencies wherein they handle the administrative and compliance function along with the HR department of an organization the payroll administrative should carry out these processes at its best as they are professional in that area. The company and the payroll outsourced agency signed the mutual contracts so as to keep the secrecy and the transparency of keeping the data safe and may not reveal to any competitor or third party. but in many other organizations the payroll is the combined duty of the HR department & Finance department.this is because the HR deals with the employee’s attendance, leave and the overall other benefits of the employees than to reconcile payroll data and depositing and reporting taxes. they generate the report as per the total no. On working days and then the report is submitted to the finance department as they deal within the numbers and the department then may check for the available cash flow for the salaries to be paid by the X account. Along with the payment of government taxes as due. One of the recent studies also claims that it is feasible when the payroll is done by the HR department so an automated payroll software is a preferable option which enables error-free processing and also to streamline the non-monetary benefits of the employees, the statutory compliance, and the overall working of the organization. Once the initial data is put forward in the system it automatically calculates payments, government taxes, and depositing monthly payments into the designated bank account of employees.and some software can automatically adapt to changes in the laws and can alert at the time of payments.
I hope we have made you understand the process and the department who can run the payroll of the organizations and the benefits of using payroll software to automate the process and to walk hand in hand to the up-gradation of the technologies with a view of growing.