FAQs — Whose responsibility is the preparation of payroll?
While this may not be true or applicable to all government agencies, especially to small agencies with limited manpower, always ensure that there is segregation of duties when it comes to the preparation of payroll.
Have one person prepare the payroll, another authorize it, and another create payments, thereby reducing the risk of fraud unless multiple people collude in doing so. In smaller companies where there are not enough personnel for a proper separation of duties, at least insist on having someone review and authorize the payroll before payments are sent to employees. [1]
Thus, to answer the question at hand, it is ideal that the Human Resource Office prepares the payroll since they hold records of attendance and overtime services rendered by the employees, the Accounting unit prepares payment, subject to the approval of the Head of Agency or his duly authorized representative.
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[1] – Accounting Tools, Payroll Internal Control
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Sa amin dito sa LGU, HR is responsible for checking the Daily Time Record (DTR), kung may late ba, absences or nag pass slip ang isang empleyado. Regarding naman sa tanong mo, it’s the Accounting Office, who will prepare of payroll. Since sila ang mas may knowledge sa payroll computation, kung ilan ba dapat ang withholding tax, SSS and other deductions. — by Ferdinand Labaniego
In our case, it’s under the personnel sect since DTR is submitted in their office. HR Dept and Personnel Adm Dept is 2 different office. — by Aves Trinidad
Ang computation sa accounting pero sa mga preparations ng notice of salary deductions, adjustments, step increments, HR yun. Minsan depende din sa laki ng organization, meron sila ibang unit sa payroll, leaves, benefits etc. — by Lou Neth
HR payroll officer should prepare [the payroll]. Accounting will check accuracy of the computations and deductions. Check and balance. — by Jerahmeel Bataculin Jagmis
Running payroll involves accounting functions and requires accounting knowledge, such as posting to the general ledger. It also requires a detailed understanding of tax law. To ensure that payroll is processed accurately and that it is legally compliant, it can be argued that payroll is best positioned within the finance function because after all, HR professionals are not trained as accountants! (From HRD Online Discussion) — by Sambile Risanna
To maintain check and balance it could be strategic to place the function of payroll preparation in the HR, knowledge of how to do it is not exclusive to Accountants and can be efficiently done by any willing and trained personnel. By the way, payroll preparation is not limited to the tax aspect, it would require understanding of other legal provisions relevant to human resource management. — by Dante Revamonte
For me, HR po since lahat ng employee benefits, status, attendance, etc. ay monitored po ni HR, mas favorable na sila na ang gumawa ng payroll. Sa accounting po ay double checking lang at preparation ng vouchers. — by MC Reyes
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