What is the difference between HR and payroll software?

What is the difference between HR and payroll software?
7.8.2025

Personnel and payroll system. What do they have in common and what is the difference between them?

In the digital age we live in, quality employees are no longer enough to manage a business. Especially in HR. Today brings with it countless systems that can help companies digitize their processes and thus save not only the time of their employees.

Among the most commonly used software in companies today is the personnel and payroll system. Their common function is to clarify and secure company data, but also to support the company's internal processes. But what's the difference between them?

Personnel system

Personnel (information) system is an orderly system used to support the management of human resources. However, it is also part of the company's overall information system. Its main function is the processing of employee data, which is subsequently used in other company processes.

Personnel system is an online link between the HR manager and the employee. Thanks to its digital form, it allows HR professionals to put an end to stacks of papers and a cluttered database of employees in Excel spreadsheets — it completely replaces them with a clear online platform.

Employee records in the first place

Personnel system records all the necessary data about employees in one place. You will find personal information about employees — personal numbers, dates of birth, addresses, employment contracts, payroll, organizational structure, medical examinations, training, e-learning, etc.

Thanks to the modules that individual HR Systems offers, helps with the registration of a broader personnel agenda. Do you want to register the assets entrusted to employees? Do you want to train your employees not only in OSH? Do you want to educate employees through e-learning? All this and much more the staffing system can offer.

Wage system

It is the responsibility of every company to keep track of the payroll of employees. Even in this case, the digitization of payroll processes is in place, since it can be difficult for a company with more employees to process wages manually and record accounting in excel.

Payroll processing

The payroll (information) system is often not sufficient in its own functions, so it is commonly connected to other systems — usually personnel, attendance or others.

Unlike the personnel system, the payroll system does not primarily record the attendance or absence of employees, but focuses primarily on the processing and registration of wages. Although some payroll systems allow personnel to register employees, most of them are not designed to allow employees to apply for leave, view their documents, and more.

Functions that the payroll system should fulfill:

  • Calculation of wages
  • Tax settlement
  • Payroll posting
  • Generating documents for pension and sickness insurance
  • Generating payslips and credit cards

Connect systems and get the best of both worlds

If you want to use the payroll processing system together with the personnel system, use the possibility of connecting both systems. Personnel system Pinya HR can playfully connect your systems and convey the best of both worlds — both in terms of personnel and payroll.

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