Do you do payroll?
HR in NY
74 Posts
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
Amanda
x:'(
Amanda
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.
Good luck,
Dutch2
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.
My advice would be to check out payroll processing companies and see what services they can offer.
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.
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.
An accounting department or comptroller's office is the place for it to be.
When I'm talking about doing payroll, I mean everything from collecting time sheets, entering timesheets, to printing of paychecks and stuffing envelopes.
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).
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;-)
E Wart
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.
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.