Payroll department responsibilities include the accurate and timely payment of employees, calculation of tax and benefit deductions, payment and reporting of taxes, and calculation of leave, overtime, holiday pay and expense reimbursements. Payroll responsibilities, often assigned to an organization's finance division, overlap human resource responsibilities, requiring extensive coordination and communication.
The payroll department maintains employee records regarding salaries and hourly pay rates, payroll tax deductions, employees' cost share of medical and other benefits, vacation and sick leave balances and the rate at which leave is earned. This information is verified, along with employees' reported time, prior to the processing of paychecks. After completing payroll and printing paychecks and stubs, payroll staff again verifies payroll information according to payroll reports. The payroll staff remits payroll tax and benefit payments as required, and also completes W-2 processing. The payroll department works closely with human resources to ensure the accuracy of leave balances, retirement accounts and tax deductions. Payroll personnel frequently interact with employees, answering questions about paychecks, leave balances, withholding options and other payroll-related issues.
Human resource and payroll departments coordinate to ensure the accuracy of leave balances, retirement accounts and tax deductions, as well as the correct application of various human resource policies as they pertain to payroll.