Do you do payroll?

Just curious. How many of you out there do the payroll in HR? I'm trying to talk my boss into moving it to accounting. He does not want to lose "control". We are a two person department and we(I) do a weekly payroll for 170 employees. Looking for ways to get my workload at the reasonable level. If you don't do payroll how does it work with another department doing it? Do you still have that control? As always you thoughts are appreciated.

Comments

  • 27 Comments sorted by Votes Date Added
  • Payroll was just moved from Accounting back to me (only HR in company of 170+ employees). I begged for it to be left where it was, but they were just to stressed... What about me?

    Amanda

    x:'(
  • I forgot to add... we have no payroll or HRIS system, everything is manual, including signing all checks by hand. It usually takes me two days to do payroll, provided there are no interruptions!

    Amanda
  • We do payroll in HR (250 employees in 2 states). However, we are fairly well computerized and use ADP. Therefore, about 15 minutes a day is spent on checking the time clock data. Payroll takes about a hour. The reason it is kept in HR is that we are the ones tracking vacations, sick days etc.
  • I am the HR Mgr for a company of 50 employees. I currently have the payroll responsibility but at one time Accounting took care of payroll. It worked pretty well when Accounting was performing the payroll duties with the exception of the "HR" issues like salary/benefit changes. There needs to be very close communication between HR and Accounting for it to work well. The only reason I now have the responsibility is because our new Accounting Mgr thought it was beneath him to do it. That's a whole story in itself. Go for it, delegate to Accounting, just make sure you have the correct processes in place to capture information.
  • I am a one person HR Department that does payroll. The payroll is outsourced - but I track leave time, deductions, and submit hours for checks to be processed. Everything is computerized so it does not take very long.
  • Amanda, how do you get anything else done? I don't feel so bad anymore. We do have an outside source that cuts the checks. I have a Kronos system, but I have to add in vacation, sick, etc. The keeping track of time off was my bosses issue - how would we continue to do that if we no longer did the payroll. Most Managers report to me their employees time off, but some rely on me seeing the payroll report to know they had a day off.
  • This is the first place I've ever worked where Payroll is handled in the HR department! It works for us, because the payroll person not only tracks & data enters new hires, terminations, wage changes, etc., but is also responsible for the rather complicated attendance "points" system. (We're a manufacturing plant with about 250 employees.)

    Everywhere else I've ever been, Payroll has been an Accounting function. I actually prefer it that way, because of the issue of "checks & balances". With Payroll in HR, there's a much greater chance that "irregularities" might happen and not get spotted. This is especially true if you're using a home-grown system, or a system like ABRA, without the necessary security built in.
  • Payroll is done in our Accounting Department and I like it that way. We have a two part Personnel Action Form. Original goes to the Personnel File to track any personnel changes and the yellow one goes to Payroll for processing. This has worked out very well for us. Our Benefits Person used to do payroll, but she was amassing a ton of very expensive overtime every two weeks trying to get it all done with no backup help. Benefits was put under the auspices of HR where it belonged and the Payroll function was left with accounting.
  • We are a bank with 200+ employees. Payroll was done in HR until last year when we moved it to Finance. Our HR Specialist in payroll/benefits works closely with them each pay period. We use ADP to cut the checks. This set-up has worked fine for us, but good communication is required.
  • We too are a bank, only with approx. 125 employees in six sepearate facilities. We figure time cards the old fashion way, by hand and a calculator. This takes my assistant at least a full day each week. She probably spends as much time following up on the exceptions as she does actually figuring the time cards. She then enters the totals for each employee into her PC and it is sent to EDP, a local company like an ADP, and they actually figure all the taxes and cut the checks. We recently looked at a program from ADP for a computerized time keeping system vs. our old time cards. We just can't afford it at this time.
    Good luck,
    Dutch2
  • Dutch,

    Up to very recently, Accounting was saddled with time cards done the old fashioned way - but through our payroll vendor, ADP, we have contracted to get their new product called EZ Labor Manager (not an expensive product) + their HR Profiles and Reportsmith so that we can finally have an HRIS system instead of the manual one we now use to do everything. I expect to have the system go live within 1-2 weeks. I'll let you know how we like it.

    But you may want to check with ADP on their EZ Labor Manager.


  • We have 150 EE's in 3 states and do payroll in HR. Salaried employees receive their set pay each payday unless we interupt it. Hourly EE's complete timesheets, supervisors verify the hours, and we do a spot check on them. We send hours & payroll changes to our PR processor, Ceridian. They figure taxes, print checks & pay advices, send a file to deposit pays into checking/savings accounts, and give us a recap of the accounting entries.

    My advice would be to check out payroll processing companies and see what services they can offer.
  • We have 400 employees in 17 locations (same state), including corporate.

    One and a half HR people. The "half" does payroll - manual entry into ADP. Payroll is bi-weekly. Takes her one full day to balance and enter what is sent to her from the locations, a half day to verify, run reports, etc. ADP calculates PTO accruals, taxes, etc and cuts checks. We enter adjustments, payroll deductions, paydata such as reg vs ot hours, PTO, holiday.

    I spend approx four hours biweekly verifying the payroll person's entry.

    We are working toward downloading from our time & attendance system directly into ADP, which should save most of the full day of entry.

    Upside to HR doing payroll? We notice right away if a new hire is missing (remember them from orientation, no file to go with bene's enrollment etc.) or if something seems "amiss" because we know many of hte employees.

    Downside? Because we notice if something/someone is missing, we make phone calls, follow up, etc, to make sure they get a paycheck. This is a kind of handholding, which results in managers just assuming we'll catch their mistakes.




  • We are a manufacturing plant with apprx. 110 ee's I (only one in HR/Personnel) do a weekly P/R process every week using our accounting software Mas90. It tracks vacation, benefits and other needed information. It takes me approx. 3-4 hours a week to complete processing checks from calculating timecards to signing checks.
  • 350 EEs - We have a "Payroll Dept." 2 EEs, that not only does payroll but also handles all benefits. We also use the Mas90 system and have found it very reliable and user friendly.
  • My current employer has the Accounting department process the payroll. Due to my experience with my former employer, I was trained to act as back-up when she is gone. We use ADP so it takes about 1-2 hours per week. Each week I provide her with a listing of changes that need to be made and she provides me with a report regarding hours, missed deductions, etc.

    With my former employer I was responsible for all the payroll functions for a 500+ employee company. The payroll dates varied, depending on location, so each week I had at least two payrolls to do. On the "off" weeks it usually took me 3-4 hours to do payroll for the smaller locations but on the weeks I had to do payroll for the largest location, it usually encompassed 2-1/2 days when all was said and done. I believe after I left they moved at least some of the payrolls to the Accounting dept.. This company did all their payroll in-house so it was quite time consuming.
  • we recently moved it to the comptrollers office because doing payroll is not just cutting paychecks, but paying taxes, w-2's at the end of the year, FICA contributions, wage garnishment payments, child support payments, etc. which we feel an accounting-based department is better to handle. We tried it in human resources for a long time, but nothing major was being accomplished by HR other than changing deductions, changing salaries, etc. And when someone got sick or on vacation in HR, it was no telling how accurate paychecks would be.
    An accounting department or comptroller's office is the place for it to be.
  • I do payroll through ADP. Payroll was moved from accounting to a newly-created HR department, because our accounting people were not keeping salary information confidential. Turns out they were also misreporting taxable income for many years. It may have been just as effective to replace the incompetent accountants, but in this organization it was important to get the whole process into more competent hands, and to get all confidential employee information organized and kept under lock and key.
  • I do payroll with Paychex. We are not that big a company (80 ee's) and it only really takes me about an hour to enter. We insert coupons and special offers to our employees in with the stubs so we seal them here. All total it takes me about 2 - 2 1/2 hours over two days to do payroll.
  • Be glad you can outsource to Paychex.
    When I'm talking about doing payroll, I mean everything from collecting time sheets, entering timesheets, to printing of paychecks and stuffing envelopes.

  • I work for a bank w/ 80 ee's in 6 different locations in one state. When I came to work here payroll was done in Accounting. They said they were overloaded, so payroll was shifted to me (a 1-person department). Too bad they didn't ask if I had a spare 2+ days in the month to do this.

    We use ADP to process our payroll but use manual time sheets which are very time consuming (including prying them out of some employee's hands).
  • HR IN NY: I can't believe that any HR would ever agree to a movement to accounting of PAYROLL!!! My assistant gets payroll done on monday and Tuesday and we have 15 remote sites, with 182 employees, several contract labor people and a boss that passes OSHS, SAFETY NEWSLETTER, BENEFIT ENROLLMENTS,FMLA, EMPLOYEE RELATIONS, LABOR RECRUITING, THE HEART WALK, THE CHRISTMAS PARTY, AND EVERY OTHER ISSUE POSSIBLE onto her back at $11.50 per hour plus o/t which she seldom uses. All so I can spend my time on this wonderful network, you see I'm addicted and unable to shed this to anyone else. I suggest you look at your computer program assistance, something is wrong in your arena; or you look at your interest in being there. There is no greater glory in HR than to make sure everyone is paid and happy with their pay; it is an absolute pleasure to listen to the pleas of an employee, and then help them to articulate their issues, concerns, and needs with their department heads to create an increase in their unequal wages, when deserving. My signature on each paycheck and bonus check is important and it must be done by Tuseday afternoon. It takes about an hour of devoted time to check and cross check a $65,000.00 payroll every week. But it takes the rest of the week getting everything ready for next week. Take PAYROLL away and there is really no need for DIRECTOR OF HUMAN RESOURCES. JUST PUT AN ACCOUNTING PAYROLL CLERK IN THERE AN OUTSOURCE EVERYTHING ELSE!!! pork
  • I've been in different companies who do it both ways. Personally, I like for payroll to be in accounting for the checks and balances, as someone else pointed out. Keeping connected with HR isn't a problem if it is done correctly. The accounting department simply processes payroll. We give them all the information they need to do it. We give them the time off each week and the pay changes, address changes, terminations, etc. They simply input the information and process the payroll. It works great this way.

    The thing I did not like about doing payroll in HR was that you were too tied down. It never failed that on the day when I had to process payroll, some "emergency" would come up. I would be torn between my payroll and HR duties. Of course, payroll HAD to get done and the other would have to go on the back burner, which isn't always a good thing.

    There are just too many conflicts with payroll and HR being together.

    By the way, we just downsized and I got payroll back. Fun, fun! x;-)
  • I too have done it both ways both with ADP and Ceridian (who I am presently using.) We are a manufacturing company with 200+ employees in 8 states. I am it for HR for the entire Corp. I have a "deputy" at each loction who records the time out and faxes or emails their time into Ceridian and they actually do the entry, and distriubte the checks (if GM wants them to). (I understand that Ceridian isn't "selling" this input function any longer). We do have their Payroll and HR software system. I administer it (and am basically the main one who uses it), even though the Accountant and Controller have access. I input any changes to the system (deductions, addresses, salary, etc.) I provide our Accountant information needed to input for any weekly input (i.e., hours worked for any employee not sent into Ceridian, retro amounts due, corrections from prior errors, disabilty pay, etc.) The we transmit on Monday, receive checks on Tues. and overnight them to our locations so they have them by Thursday. It takes both of us an average of 1/2 day each Monday. I don't know how you could have Accounting manage your HRIS. I think all they can and should do is the actual "hourly" transmission. Some of our folks are salaried and set up as forcasted so no entry is made unless it is to change. Ceridian does our tax filing as well. Works fine so far. I have to follow up with Managers on when increases are due etc so inputting this info into the HR system isn't that much different. Also, when they need reports, they call me and I generate them.
    E Wart
  • We too have Ceridian. Payroll is done primarily in the accounting dept. HR inputs salary changes, address changes etc, benefits, new hire info,etc. Supervisors approve time sheets and input vacation, sick leave etc, by computer and the system pulls it over to payroll.

    I fought for more control over payroll before we had this system. Our auditors really like the separation of duties, with HR doing most input and Accounting doing the "output." Fortunately, our payroll clerk is wonderful to work with.
  • We are a bank with 14 branch locations among three states. HR is responsible for payroll as well as all the other HR stuff. When I first came here, I was suprised that we didn't allow AP to do payroll for all those checks and balances - but learned that previously the one person HR department used to take care of it. (We are now a two person HR department)

    The pros- we can see errors right away and know if we are missing something. Our error rate is pretty low. The cons - researching questions. We use Cerdian, but we do the input and maintain the reports. We also track our vacation time manually. (Soon to be changed!)

    For those of you looking at ways to streamline your process, we have a computer version of a timecard (spreadsheet) that our employees enter their time on daily. The manager checks their time cards weekly and sends us the file weekly. We print timecards and enter. It seems to work a lot better for us than timeclocks and less costly than Kronos or ADP.


  • I have worked payroll both ways, and I prefer it in HR. You still have to have the close contact with Finance, and it is a great help if you have the financial background. We are a manufacturing firm with about 1000 employees in two states, and I outsource my bi-weekly payroll to ADP. If I were in your shoes, I would strongly encourage you to try to get your payroll outsourced regardless of which department handled it.
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