Difference between Payroll and HR Software

The widespread use of new technologies like mobile devices and social media has caused a dramatic shift in how businesses employ technology in human resources departments. The Internet is redefining the role of human resources in the modern workplace. Any firm or organization must find a happy medium between its physical, organizational, and human resources to survive in today's competitive economic climate and maintain market leadership. Payroll and human resources (HR) services are integral to this procedure. However, it is critical to have a thorough familiarity with human resources and payroll facets.

What is HR Software?

Human resources (HR) software, commonly known as human resources management systems (HRMS), is a robust web−based solution for managing and enhancing routine HR tasks and responsibilities. Integrating various systems and procedures, it manages data, business operations, and human resources in a way that is both effective and efficient. The human resources software achieves this by speeding up and simplifying previously manual processes, centralizing employees' data, and generating actionable results.

Years ago, when I worked in human resources, the focus was on classifying employees into various categories and creating better tools to determine which categories were most suited. Human resources in the twenty−first century are all about automation since it streamlines processes by automating and integrating many of the routine HR tasks businesses often perform. Human resource management is greatly aided by the use of various IT infrastructures for streamlined data collection and reporting.

What is Payroll Software?

Payroll is the mechanism via which an organization pays its employees; therefore it stands to reason that employee compensation and benefits are also associated with payroll. Payroll software is a management system used to keep track of, organize, and automate monetary compensation for employees, much like human resources software. The majority of modern payroll systems are web−based.

With this tool, organizations may avoid the time−consuming and error−prone procedure of calculating and processing payroll for each employee individually, allowing for more exact payroll accounting. Payroll processes may be made more reliable by using automation to remove the possibility of human mistakes. A number of times every month, the payroll system plays a role in creating paychecks and direct payments.

To effectively handle the payroll system's application, you may require knowledge of benefits, tax laws, and other domain−specific information. In its most basic form, payroll software is designed to streamline and automate the whole payroll operation.

Differences: Payroll Software and HR Software

The following table highlights how Payroll Software is different from HR Software −

Payroll Software HR Software
Web−based payroll management software that tracks, updates, and routinely automates employee pay. A cloud−based HR management and performance−enhancing technology accessible over the World Wide Web.
In its most basic form, payroll software is designed to streamline and automate the whole payroll operation. Provides assurance of proper management of information, organization, and personnel
Carry out duties such as salary and deduction computation, pay stub generation, incentive and bonus calculation, cost and tax calculation, and so on. Personnel administration includes searching for and hiring new employees, maintaining tabs on current employees, processing payments and benefits, monitoring time and attendance, and so on.


Payroll services are typically managed by HR in most organizations. Everything having to do with staffing and compensation is within this department's purview. The finance department may be the one in charge of payroll, meaning that they are the ones to figure out wages and deductions, make pay stubs, figure out bonuses and incentives, costs, and taxes.

Sometimes the payroll process is handled by a whole other division. Human resources plays a crucial role in the smooth execution of payroll−related tasks. Human resource management systems, which include payroll applications, are among the most reliable systems in use today.