Ask most companies who owns payroll and they
will say HR.
Ask most companies who owns payroll and they
will say HR.
That answer is half wrong.
Payroll is a FINANCE event that HR happens
to trigger.
Every payroll run creates 6 finance actions:
β Salaries payable (P&L expense)
β PF, ESI, TDS liabilities (balance sheet)
β Reimbursements (P&L expense)
β Bank payments (cash flow)
β TDS challan (compliance)
β Books updated (accounting)
Every single one is a finance action. HR
just kicks it off.
When payroll and accounts live in separate
systems, someone re-enters all of this every
month. When they live on one platform,
payroll posts to the books automatically.
One run:
β
Everyone gets paid
β
Compliance is calculated
β
Books are updated
β
Zero re-entry
The insight isn't that payroll should be
automated. It's that payroll should not be
an ISOLATED process at all.
infisuite.com/what-is-payroll-compliance/