What do HR and payroll services involve?

Last update:
Published: 12.07.2024
Read in: 4 min

HR and payroll services encompass various aspects of a company’s internal operations. These include occupational health and safety (OHS) services, preparing HR and payroll documentation, handling salary settlements, maintaining HR records, managing leave, and employee recruitment.

Nowadays, a common solution is external HR and payroll services (HR and payroll outsourcing), which involve outsourcing some or all HR and payroll processes to another company. This has both advantages and disadvantages, but this article focuses on explaining the definition and scope of services included in HR and payroll services.

What are HR and payroll services?

Comprehensive HR and payroll services include all activities related to human resources and payroll. The scope depends on the specific nature of the business.

It’s important not to confuse HR and payroll services with HR and payroll outsourcing. The former refers to specific actions performed by the HR and payroll department, while the latter involves outsourcing these activities to an external entity.

What do HR and payroll services include and what does the HR and payroll department do?

As the name suggests, HR and payroll services consist of two parts: HR services and payroll services, encompassing activities in both areas.

HR Services

HR services (HR outsourcing) include activities such as:

Recruitment and downsizing of employees;
Maintaining personal records;
Creating employment contracts;
OHS services — including organizing training;
Human resources management — schedules, leaves, dismissals;
Supervision and verification of labor law compliance.

Payroll Services

Payroll services include:

Preparing payroll lists;
Calculating salaries;
Computing social security contributions (ZUS);
Preparing tax declarations for income tax (PIT);
Salary payments;
Preparing financial reports.

It’s worth noting that some activities included in comprehensive HR and payroll services pertain to both areas simultaneously. These include preparing HR and payroll documentation, registering employees with social security (ZUS), and preparing documentation for the Central Statistical Office (GUS) or the State Fund for Rehabilitation of Disabled Persons (PFRON).

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How much do HR and payroll services cost?

If you’re wondering about the cost of managing HR and payroll, it’s impossible to provide a straightforward answer. Full HR and payroll services will certainly be more expensive than outsourcing selected aspects. Moreover, the price can be influenced by the industry’s specifics and the conditions the external company must meet to provide HR and payroll services. Additionally, the number of employees in a given company will affect the cost of external HR and payroll services.

Therefore, for accurate pricing of HR and payroll services, a detailed determination of the client’s needs and the industry’s specifics is necessary.

What should an agreement with an accounting firm or other entity providing HR and payroll services include?

In addition to the basic elements of any agreement, such as the parties’ details, the date of conclusion, and the duration, an agreement regarding HR and payroll outsourcing should include the following points:

Duties of the HR and payroll department (responsibilities of the contractor);
Duties of the client (customer responsibilities);
Liability for damages;
Remuneration amount.

What are HR and payroll services? - Summary

HR and payroll services cover a wide range of activities related to human resource management and remuneration. They are essential in every company and include activities related to labor law, OHS, and report preparation.

However, increasingly, companies opt for external HR and payroll services, or outsourcing these services. If you are considering implementing such a solution in your company, you have come to the right place. Schedule a consultation, explain your problem, and see how our specialists can assist you and your business!

Tomasz Połeć Tomasz is a co-founder of Taxology and a tax advisor (license No. 12104), with 15+ years of experience in Polish and international consulting firms. Leveraging his expertise from numerous tax reviews and audits, he offers proficient tax advisory services to e-commerce companies. He specializes in advising on VAT and CIT settlements in e-commerce and logistics.