Simplify the Way You Manage People and Pay

An HR and payroll system is software that centralizes how companies manage employee data, HR processes and payroll. It helps run payroll accurately, manage benefits administration, track time, handle onboarding and support compliance with tax and labor regulations. These systems often include tools for PTO, direct deposit, tax filing, and employee self-service.

For HR leaders, using an HR and payroll system reduces manual work, supports integrations across key functions like talent management and performance management and improves visibility through reporting. Modern systems provide a single place to process payroll, track new hires and manage health insurance enrollment—delivering both operational efficiency and peace of mind.

HR and payroll functions are closely linked through shared data, tasks and workflows. HR manages key employee information such as job titles, pay rates, benefits, PTO and time tracking—data that directly impacts how paychecks are calculated. Payroll then uses this data to process compensation accurately and stay aligned with tax compliance requirements.

When combined in one system, HR and payroll software solutions reduce manual entry and keep employee records consistent across both functions. This integration supports better workforce management, simplifies reporting and improves accuracy. Many small businesses benefit from using full-service platforms that combine payroll management, employee benefits and HR systems under a single management system.

The three common types of HR systems are HRIS (human resource information system), HCM (human capital management) and HRMS (human resource management system). Each supports core HR functions such as employee data management, benefits tracking and payroll services, but can vary in features and depth.

An HRIS typically focuses on employee records and compliance. HCM expands on that with tools for talent management and workforce planning. HRMS often includes payroll and time tracking in one platform. Many businesses choose a system based on their size, pricing structure and whether they need integrated solutions for payroll, reporting and mobile app access.