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HR Payroll System Tools and Technologies

13 January 2012

There are a number of different ways to approach the way in which an HR payroll system works.  Payroll is either done in-house or contracted out to an organization like Paychex or ADP.  Regardless of whether payroll is outsourced or the company continues to do it themselves, having the correct HR payroll system goes a long way toward ensuring the accuracy and efficiency of the payroll process.

Human Resourse Software

HR Payroll System Tools and Technologies

There are time keeping mechanisms and software products developed specifically for payroll.  Sometimes this functionality is embedded within a large end-to-end business solution either by means of in-house development and configuration or with the assistance of additional utilities or plug-in to the core business system.  Payroll products such as Kronos, Ceridian and Cyma offer generalized payroll capabilities that are configurable to meet the needs of most payroll departments.

Software solutions designed to cater to service and time driven payroll activities have also been developed to work for consulting and self-employed consultants and service providers.  The HR payroll system in many large companies must accommodate payment of consultants from third party erp vendors and self-employed individuals and independent contractors.  Providing 1099 information at the end of the year is required and that is a separate process entirely from that of the rest of the workforce.  

An HR Payroll system must be able to interface with outside vendors to provide earning and billing data, chargeable time and so on.  Human Resources should be able to retain access to the data for reporting and salary history purposes.  HR payroll system data is extracted from a company’s business system database at a set time each week and uploaded to the payroll company for processing and payment.  

Direct deposit is the most common way that employees receive their salaries and direct interface between payroll and various banks via ACH (automated clearing house) is a functionality that most HR payroll systems require.

In-house systems perform all of the transactions that outsourced payroll services are capable of but they also provide for specialized functionality and proprietary configurations unique top a specific organization.  Often bonus and incentive programs are tied to the payroll system.  Employee numbers are frequently used as a unique identifier within the system and those can be generated out of or for the payroll system.  

Confidentiality is a major consideration for an HR payroll system and that is why many organizations prefer to handle payroll themselves rather than delegating such sensitive information and responsibilities to outside vendors.  Whatever the case, payroll is a basic, primary and essential function handled most efficiently with the use of an HR payroll system.

Keeping accurate records and banking knowledge down to minutes of vacation time or other PTO (paid time off) is an intricate business with much visibility.  Human resources departments the world round share the same sense of urgency and priority when it comes to pay day so doing the research, knowing the requirements and testing different payroll scenarios is critical to the formation of a viable payroll administration strategy.  Do the homework and the company will reap the rewards in the form of accurate reliable paychecks for like employees.  


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