Human Resources and Payroll are two vital functions in a business that have to work in harmony. While they often work closely together, they serve distinct purposes, and when the lines blur, it can be unclear who handles what, which can lead to unhappy employees and costly mistakes! Our Payroll and HR experts at BM Connect are here to tackle some of the most common questions they receive.
FAQ 1: Who handles employee onboarding?
HR Expert: Onboarding is primarily an HR function. We manage the employee experience, contracts, right-to-work checks, benefits enrolment, and introduction to company policies.
Payroll Expert: Payroll comes into play once the onboarding info reaches us from HR. We need accurate personal details, tax forms, salary, start date, and deductions to set them up for their first payday.
Interaction: HR provides the data. Payroll validates and implements it. Errors or delays in onboarding can cause pay mistakes and a poor first impression, so good, clear communication is vital.
FAQ 2: Who sets salaries and bonuses?
HR Expert: HR leads on salary benchmarking, pay banding, and incentive strategy, working with leadership to ensure fair and competitive compensation.
Payroll Expert: We process approved increases. But we also ensure compliance with minimum wage laws, tax treatment of bonuses, and feedback impacts on business costs.
Interaction: HR sets the “what”; Payroll delivers the “how”, and both pairing up to ensures it’s legal and accurate.
FAQ 3: Who handles maternity and sick pay?
HR Expert: We support employees through the process, helping them understand entitlements, submit medical documentation, and communicate absences.
Payroll Expert: We apply statutory and contractual rules to calculate and process pay accurately, whether it’s sick or any type of parental pay, including any company enhancement schemes.
Interaction: HR manages the people; Payroll handles the payments. Both need up-to-date policies and to share data between them.
FAQ 4: Who deals with pensions?
HR Expert: HR may choose the pension provider and communicate the scheme to employees.
Payroll Expert: We manage contributions, ensure compliance with auto-enrolment rules, and upload data to the pension provider every pension cycle.
Interaction: HR decides the plan; Payroll ensures it runs smoothly and stays compliant.
FAQ 5: Who makes sure we’re legally compliant?
HR Expert: HR covers areas like employment law, contracts, grievances, and diversity policies.
Payroll Expert: Payroll ensures compliance with tax laws, HMRC deadlines, and pension regulations.
Interaction: Both teams are compliance guardians, just in different areas. The risk of penalties is high when either side is neglected.
Conclusion:
So… HR vs Payroll, who’s the expert?
The answer: both. Each function brings its own specialism to the table. HR focuses on the people; Payroll focuses on the compliance.
The best-run businesses have experts in both areas working in sync, gathering and discussing situations as they arise. No treading on toes, no misunderstandings, respect for each other’s area is needed, as they both have the same purpose, looking after your employees.
