QuinModah:
HR Manager (HRM) and Finance Manager (FM): Controversial issue on payroll management.

There has been recent controversial issue between HRM and FM on who to manage payroll process for a newly established organization. Below is the discussion among CEO, FM and HRM.

CEO: As we all aware that this is the first management meeting of this newly established company. Please HRM share update on staff matters with management team.

HRM: Thank you CEO. We have successfully recruited 15 staff and I am working on their payroll for this month. Immediately I'm done, I would bring it to your table for final approval before forwarding to Finance Manager for payment.

FM: Please HRM, we need to get it right from inception especially on payroll management. If I may ask, I have few questions on your submission.

HRM: Please go-ahead FM.

FM: Please are you aware about latest Finance Act, 2020 which gives ways to new computation of Personal Income Tax (PIT) popularly called PAYE? Also, are you the one to be responsible for annual returns and tax audit with IRS. Finally, other parameters of payroll such pension, NHF, ITF and NSITF should be adequately managed to avoid fine and penalty.

HRM: Kindly note that payroll has to do with staff matter and anything that falls within this category, it is solely handled by HR. Also, on all your questions, we would take cognizance of it and revert if there is any clarification.

FM: Alright but you also need to take note of staff IOUs and advances that might have been posted into various staff accounts on SAP.

HRM: If you want to handle that responsibility, I might shift it to you for proper management as you claimed.

CEO: No at this moment, I intentionally allowed you guys to justify your positions. However, kindly do more consultation with various professionals in different industries and revert in the next meeting.

Please share your view on who to manage payroll.

Rubyjade:
educative................ My sis once worked in a place where she earn 130k gross but her net was 114 and some fractions and I told her they are cheating her. She said they pay pension, NHS and PAYE, even at that I still told her net should be around 121 and some fractions. This will ONLY happen in an organisation where the HR does not understand the finance act 2020

ednut1:
tax of 9k on 130k. What are you smoking bro

AbuAeesha:

too much or small

dfrost:


That's total for PAYE, Health, NHF, Pension. What is the exact amount for your PAYE?

Pojomojo:
First, Why do both managers need to fight on who to manage Payroll when it is actually the responsibility of both parties to ensure that all staff salaries and allowances are paid accurately, and as and when due.

Payroll Management overlaps between HRM and FM, however, given that HRM is the People Business Partner, we can deduce that the primary responsibility of ensuring that all staff get what is due to them as compensation lies with the HRM.

For Preparation of the Payroll, it is better that the process is managed by the HRM given that it has all information regarding entry and exit of staff, as well as, who deserves to get what, from time to time.

The FM comes in when it comes to establishing the processes (building the Payroll Sheet or System) and advising on necessary developments as it relates to statutory compliance on a regular basis.

In practice, from both my local and international experience, I have seen that the HRM manages Payroll, while the FM reviews and disburse accordingly.

Given my above points and practical experience, I'd say the primary responsibility of Payroll Management falls on the lap of the HRM with the FM providing necessary and strategic reviews and input from time to time.

Rubyjade:
educative................ My sis once worked in a place where she earn 130k gross but her net was 114 and some fractions and I told her they are cheating her. She said they pay pension, NHS and PAYE, even at that I still told her net should be around 121 and some fractions. This will ONLY happen in an organisation where the HR does not understand the finance act 2020

ednut1:
small

Housing:


Your sister is not being cheated, PAYE alone for a salary of 130k is more 10k not to mention other statutory deductions.

larrypourl:


I don't think your sis is being cheated. If you're to subtract 7.5% pension dedication as stipulated by law and recently reviewed to 8% while employer pays 10%, PAYE and NHS removed from that 130k, then her net pay is okay.

fados4sure:

Funny dude Lady

I work in a public service in Edo State and my salary is 150k and at the end of the month, I do receive 135k, where the balance go for PAYE, Health, Housing and the likes

gentle007:

Jesus! Let's assume that they are cheating her, and you believe her take home should be 121, then how much is paye and how much is pension?

ednut1:
tax of 9k on 130k. What are you smoking bro Sis, what the tax?

ThierryJay:


Payroll management is not only about salaries, it also covers accuracy in calculating tax, pension and other statutory deductions which the FM is better placed to handle otherwise you'd be overpaying or underpaying staff and the Government which is a risk to the company.

So in reality in most structured organizations, it is a joint responsibility between HRM who provide the source data and FM who finalizes the report with the deductions and net disbursements due to staff.

toprealman:
Do they really care?

dfrost:


He's actually right. First 300,000 is 7%.

bonjoconjo:
Payroll calculations are strictly finance , because of pension taxes PAYE and other statutory deductions which HR doesnt know about,
HR will provide attendance records, intakes , leavers & joiners and advise who is confirmed and who isnt etc , then finance do they calculation and present to the CEO and MD for approval.

if you do it any other way. if any problems happens with LIRS or FIRS you are on ur own. some tax mistakes can be costly and lead to huge fines & penalties because HR is strong headed.

Finance has full responsibility for payroll, HR has partial responsibility
HR advises Finance on payroll info. Shikena, but ultimately it is finance responsibility HR JUST SUPPORTS.

ednut1:
first 300k is annual not monthly. I did taxes as an auditor and accountant.

dfrost:


That's total for PAYE, Health, NHF, Pension. What is the exact amount for your PAYE?

ednut1:
I never insulted you. Why are you triggered lol. 130k cant be annual as thats 10k a month. He also mentioned net pay which is monthly. I dont need to calculate it as they HR amount is probably correct, there is pension and other deductions too. There is no way it can be 9k deductions. I dey work i for calculate am

AbuAeesha:

i don't think its small from experience even over 140k the task & pension is a little less than 10k.
probably different firm with their policies.

Rubyjade:
This is outrageous even the LIRS calculator does give 17k+