Payroll and HR: What are the Exact Differences?

Of course, it can easily be seen that payroll and HR hold distinct functions in a company. There are a couple of differences when it comes to the roles that payroll and HR play. Although the two are easily distinguished, some responsibilities that belong to the other fall on the other, and it makes things confusing at times.

Our HR and payroll outsourcing Dubai have different functions that they follow even though they work closely together. Since we provide HR outsourcing, we ensure that a flow of command and business are done for confusions to be avoided. The below list is followed as well to be certain that everything is under control and organized.

To ensure that your employees are not disorderly when it comes to doing the functions that they each need to do, especially these two subjects that we are discussing, you can take a look at the roles that each play below or go here to find out more.

Functions of Payroll Department


Generally, as commonly understood, payroll has got to do with handling the salary of employees. There is a different payroll system in each company. But their responsibility includes the calculation of all the benefits, reimbursements, wage deductions, holiday pay, other paid leaves, overtime, record keeping, etc. Aside from these, the people who take care of the payroll process need to balance and reconcile the data. With the help of a payroll software, they ensure that the correct value of salary is received by each employee, who has different data with regard to the abovementioned items. Once everything is meticulously calculated through a payroll software, payslips are delivered by them and the money is sent to the employee’s accounts. To add to their function, it is also their responsibility to keep the paperwork of the employees and record the new ones. Moreover, developing a functional payroll system to make things easier.

Functions of HR Department

The one thing that is considered to be the main responsibility of the HR department is to manage the people in a company. There are many more of HR solutions that they are responsible of. It’s also part of the role they play in an organization to find the right people to fill the void and function as they are expected to. They are the ones that conduct a monthly Q&A or interview to ensure that you are doing great with your job and if there is anything that can help you excel even more. They are the ones that receive the complaints that employees have against the company or their colleagues. They provide the overall HR solutions that an organization needs.

More often than not, HR department makes up a reward system to encourage employees more, such as a prize for not being late or incurring any absence in a month or giving out training programmes to give them more ideas how to be productive.

Company events, like team building and Christmas parties, are also part of their function. They plan all of these to keep the employees happy and energized in doing their job because they believe that they are the key to the success of an organization.

Where Their Functions Collide

There can be a lot of things that both departments do that coincide or need to be done together. HR solutions are possible with the cooperation of the payroll department, and regardless if the payroll process is done through a payroll software, it is still advisable for both to work together. There are functions that need to be coordinated by both to perform efficiently. For example, the HR department needs to be informed of how much time the payroll process needs, with regard to the calculation that is done to get to the value that each employee receives. This is because it would be the HR department that would answer to employees if issues arise with regard to salary. The two departments also collaborate in ensuring the safety of the employees’ information. For effective HR solutions, both departments need to work as one. Aside from these, they also work together with regard to salary increases, holiday and sick leaves, bonus payments, etc.

Now, although they have different functions, they do work together to achieve efficient workflow that will help provide effective HR solutions and smooth payroll process. We believe that proper communication makes our two departments work smoothly and even handle our hr outsourcing and payroll outsourcing Dubai.

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