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The payroll department is a key feature of a company's internal expense functions.
As such the payroll department must interact with several areas:
A. The accounting department will need to explain certain payroll practices. Such as making sure the company's budget for payroll is within the budget guidelines;
B. If the payroll department is part of human resources, then accurate payroll records will help any disputed pay problems for employees; and
C. The payroll department has government regulated payroll deductions. Internal auditing will need to ensure that the proper deductions are being made.
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