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Difference between Human Resources and Payroll

Some people and even organizations make the mistake of considering human resources and payroll to be similar things. However, they are two different areas of a business. Payroll deals with compensating employees while human resources means taking care of employee relations.


Both payroll and HR services have distinct roles in a company but they also share some functions that allow smooth and efficient functioning of an organization.


The integration of payroll and HR services, with the help of audit firms in Malaysia, allows companies to enhance the efficiency of the business, increase productivity and minimize the issues associated with producing consolidated reports.


These two departments of a company overlap in certain situations; for example when an employee is fired or recruited, when increasing the compensation package of an employee or when the company is going to grant leave to an employee.

The Role of Payroll in a Company

Payroll is the process through which the employees of a company receive their salary. Payroll services and functions include balancing and maintenance thorough payroll data, depositing salaries and reporting taxes. Payroll services also include dealing with wage deduction, creating and maintaining records and authenticating financial data.


Every organization should hire a reliable payroll management company or an accounting firm in Malaysia that can manage such services and ensure the proper distribution of payroll checks, making sure that the company is in compliance with tax laws and maintaining records of old and new employees.


Such accounting and audit firms in Malaysia are not only responsible for calculating the salary and wages of employees, but also for adding overtime, holiday and bonuses when required.

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The Role of Human Resources in a Company

It is the responsibility of the HR department to manage the staff of a company. This type of management can happen in different ways. For instance, hiring the right kind of person for a company and making sure that all of the employees are working for the benefit of a business. Once new employees have joined the company, the HR professional has to ensure that they are delivering as per expectations.

The HR department also has to increase the motivation of employees and reward them by providing different bonuses like paid holiday or incremental increases in salary after a certain period of time.

Common Things Between HR and Payroll Departments

Both HR and payroll services are important to make sure your business is running smoothly. For instance, if an HR department has decided to fire an employee, it must inform the payroll management team to ensure proper paperwork can be produced for his or her release from the contract.

Similarly, in the case of bonuses or an increase in salary packages, the HR department will forward suitable documents to payroll for the calculation of the payment that has to be paid to employees. Other balances like a vacation, sick days and paid or unpaid leaves are tracked by both HR and payroll.

If your company is getting HR and payroll services from an accounting firm in Malaysia, it is important for you to include them in any strategic planning about your business. All departments must work together for the benefit of the business and make sure that they are able to achieve set goals.
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One way of understanding the significance of HR and payroll services in planning is that the HR department is familiar with the professional strategies for hiring the best talent for your business and they know how to implement the suitable rules and regulations that promote an efficient and productive workplace.


Similarly, payroll is important for finding the best solutions to maximize the security and efficiency of payroll systems. Audit and accounting firms in Malaysia are well-equipped to provide payroll services, along with efficient auditing systems that minimize the risk of fraud and malpractices in paying employees.


Such modern practices and payroll systems also allow your company to pay employees on time so you will not have to face any legal issues due to late payments.

In a Nutshell

It is evident that both the human resources department and payroll services are essential for any type and scale of business. HR professionals make sure that suitable people are joining the company while payroll services are associated with paying your staff correctly and on time.

Most businesses, especially small-scale companies, can enjoy massive benefits by outsourcing their payroll and HR services to a third-party accounting and audit firm in Malaysia. Such firms have the required skills and knowledge needed to provide the best payroll and HR services for your business.

For more information, feel free to get in touch with us.

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