Why Should You Separate HR and Payroll Software?

Combining HR and payroll software is an unfortunate trend in businesses across the country. Mixing HR and payroll functions is an increasingly common strategy in American companies. However, these departments have discrete functions and limited overlap when it comes to company responsibilities. If you’re considering a new payroll software, don’t overcomplicate things by combining HR and paychecks. Instead, look for a payroll tool that can easily export data to share with other departments.



What is HR and Payroll Software?

HR and payroll software, also known as integrated payroll, combines HR and payroll functions into a single tool. In general, a business’s HR department is responsible for maintaining personnel policies, recruiting, mediating interpersonal conflicts, and protecting the company from potential litigation. By contrast, payroll is responsible for calculating tax and wage information and distributing payment.

While human resources and payroll have distinct tasks within an organization, there are certain areas where they overlap. For example, functions like benefits additions and deductions, sick and vacation days, and salary changes will require input from both human resources and payroll.

This is often where the similarities end. Payroll is a specialized financial operation that requires a different background and skill set than HR. Combining these tasks into a single software – or a single employee – risks inefficiency and inaccurate payment.


Keeping HR and Payroll Separate

While opting for a combined HR and payroll platform is becoming common, many companies should choose to keep human resources and payroll functions separate. It can be tricky to find a candidate with the right skills to handle both HR and payroll in a single role. This task is made even more difficult for small businesses who may not have the recruiting support of a larger company.

Combining HR and payroll functions into a single tool can spell disaster for a business. However, it is important to keep in mind that they sometimes share employee-related data. For example, employee information regarding home address, social security number, and salary is important for both HR and payroll. For this reason, it is important to find a payroll tool that can easily export essential data for supplemental use in a company.


Find Exceptional Payroll Support with AMS

A payroll tool with an export function is the best option for businesses of all sizes. AMS Payroll, our payroll module, is a great candidate. In addition to exporting data to the base W-2/1099 Forms Filer, AMS Payroll can export data to tab-delimited text files and/or QuickBooks General Journal. Data sharing is simple and easy.

Additionally, AMS Payroll includes all the payroll functions you’ll need in a software. The tool automatically calculates federal, state, and local payroll taxes. You’ll be able to process both “live” and after-the-fact payroll and file certain federal forms directly from the software. Plus, with support for up to 1,999 payers and up to 9,999 employees per payer, this is a great platform for businesses of all sizes.

If you’re interested in trying AMS for yourself, check out our free demo software. If you have additional questions about separating HR and payroll software, give our Sales and Information Team a call at 800-536-1099.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.