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Should payroll be HR or finance?

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Tony Morales
Title: Certified Public Accountant
Company: James, Surman & Goldberg CPA
(Certified Public Accountant, James, Surman & Goldberg CPA) |

Operationally? I would classify Payroll as Human Resources (HR) over Finance for key several reasons.

However, when it comes to the reporting and authorization of payroll, those functions should not be delegated to HR. Segregation of duties is key for proper internal controls of any company.

K M
Title: Accountant
Company: Not Disclosed
(Accountant, Not Disclosed) |

What I have seen is that at large companies HR has the Payroll function. HR usually has an accountant on staff who handles the payroll as it involves a lot of calculating and reporting. At small companies, it can go either way. But Mr. Morales's point is a good one that segregation of duties is needed.

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