Payroll processing in lay man terms simply accounts to the money paid to the employees for the
time worked.However, in management context, it is not as simple as it may sound.Requirement of
good mathematical skills, problem solving abilities as per the set guidelines is a must to ensure
that the payroll processing is done accurately unbiased and trial free.

Usually pay roll processing is done before a certain time frame so as to enhance the credibility of
the process of pay checks and ensuring that there is no error before the actual payment is done.
Payroll processing as like any other system that integrates the working environment of any
organization comprises of the staffs who are responsible for the details involved in the payment
process amongst which payroll clerk, payroll assistant, payroll specialist, payroll supervisor,
payroll manager hold significance.Payroll processing also includes withholding taxes from the
payment that is to be made to the government accordingly which may have different guidelines for
the hourly based and salary based employees.

The importance of payroll processing can be accounted from the fact that, today’s companies
leverage benefits through effective budgeting, tracking of finances, and compliances with the
state law.

The significance of the payroll processing is not under cover but then who actually is responsible
for the payroll processing?  Who should handle the responsibility of the system? Either finance
department because it does include budgeting, or human resource because we are talking about
biased free reward in monetary terms to employees or is it some third party management’s
obligation to deal with the matter.

Well, there is no one simple answer to this-the reason being difference in the way a firm operates.
For instance, a small company with low budget can’t really afford to include a third vendor,
however company with greater turnover do need to rely on the payroll management as a third
option rather than finance or human resource department dependence.

However, before coming to a decision on the payroll processing in the organization, a company
has to come up with the credibility of the source and ensure that there isn’t any biasness or lack
of performance in the part of the management to do what they are responsible in the first place, i.
e. ensuring error free pay checks to the employees in time for the hard work and effort that they
put into the organization from which a company reaps its benefits.

Read more on human resource cost management .      

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Procurement and

Human Resource