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Payroll and HR records: what goes where

By the EMPOBase team · · 4 min read

Short answer

Keep three kinds of records apart. HR records hold the person and the employment: contract, role, leave, performance. Payroll records hold pay: grade, salary, benefits, deductions and payment. Project cost records hold only the labour cost charged to grants, as totals. Link them by clear references, restrict each to the people who need it, and never copy salary rows into project reports.

Key points

  • Three record types: HR file, payroll record and project labour cost.
  • Salary and bank details belong in payroll, not in the general staff directory.
  • Project and grant reports need labour cost totals, not names and salaries.
  • Approved timesheets are the link between people and project cost.
  • Check who can open each record type twice a year.

Why does it matter where a record lives?

Small NGOs often keep everything about a person in one folder or one spreadsheet. It is easy at first. Later, it creates problems: a manager sees a salary they should not see, a donor report includes names it should not, or a payroll error spreads because three copies of a figure disagree.

Sorting records into a few clear types makes it clear who owns each one and who may see it.

What are the three record types?

Record typeWhat it holdsWho normally sees it
HR recordName, role, duty station, line manager, contract type and dates, identity documents, leave, performance, trainingHR; the person; line manager for allowed sections
Payroll recordPay grade, salary, allowances, benefits, deductions, bank details, payment historyPayroll and finance staff; HR lead; the person for their own
Project labour costCost of staff time charged to each project, budget line and period, as totalsFinance, project managers, donors in summary

The key idea is that the third type does not need the first two in detail. A donor report needs to show how much staff time cost on a grant. It does not need to show who earns what.

Which fields go in which record?

Use this as a starting guide and adjust.

  1. HR record: identity, role, reporting line, contract dates, leave, performance notes, training, declarations.
  2. Payroll record: grade, salary, benefits, bank details, deductions as set by your payroll provider.
  3. Both, by reference: employee number and contract type, so the two can be matched without copying everything.

Avoid copying a field into two places. When you must, name one place as the master.

How do project costs connect to people?

Many donors fund staff salaries as part of a grant, and they want evidence of the time worked. The link is the timesheet. Staff record time against projects. A manager approves it. Approved time then turns into a labour cost charged to each project.

Two controls help:

  • A manager cannot approve their own time.
  • The split across projects adds up to the full time worked, with exceptions flagged.

For more on how staff time reaches the ledger, see charging staff time to projects.

What should stay outside this system?

Payroll rules are strict and country-specific. Tax, social contributions, payslips and statutory returns follow local law, and mistakes carry penalties. Many NGOs use a payroll provider or an accountant for this part. Laws differ by country, so ask a local adviser what applies to you.

Make sure the hand-off is clean. Agree each month what HR sends to payroll (new hires, leavers, changes in pay, unpaid leave) and what payroll sends back (the cost split by project). Record the date and who signed off.

How do you keep access under control?

Review who can open each record type twice a year. Ask three questions: Does this person still need it? Is there a safer way to give them what they need, such as a total instead of a name? Has anyone changed role? Our article on who should see salary data goes deeper on this.

What does a monthly routine look like?

A short, fixed routine keeps the three record types in step. Here is one that suits a small team:

  1. Before payroll closes: HR confirms new hires, leavers, changes in grade or salary, and unpaid leave, with the date each takes effect.
  2. During payroll: the payroll provider or accountant prepares pay and statutory items under local rules.
  3. After payroll: finance checks that the cost split across projects adds up to the full cost, and looks at any exception.
  4. Month end: project managers review labour cost on their budgets and ask questions about large changes.
  5. Record: one person signs off the month and files the evidence in one place.

Small errors are easy to fix in the month they happen and hard to fix a year later in an audit. If a figure in the payroll record and the HR record differ, find the source document, such as the signed contract or pay change letter, and correct the record that is wrong.

Where EMPOBase fits

People & HR holds the HR record. Pay grades and salary records sit behind a dedicated compensation permission, along with pay review cycles and benefit plans. Approved timesheets post labour cost to projects, and payroll allocation records reach Finance as sealed totals per run, period and project, with no names, salary rows or bank details in the ledger view. EMPOBase does not compute payroll tax or social contributions, produce payslips or file statutory returns, so that stays with your payroll provider or accountant. See the documentation.

Questions people ask

Should the contract be in the HR file or the payroll record?

Keep the signed contract in the HR file. Payroll holds the pay terms taken from it, such as grade and salary. If the two disagree, the signed contract decides, so fix the payroll record.

Do we need timesheets if staff are on a fixed salary?

If salary is charged to grants, yes. Donors want to see how time was split across projects. A timesheet is the evidence behind the split.

Who should hold bank details?

As few people as possible, normally payroll and finance staff who make payments. Keep them out of the general directory and out of any report that goes to managers or donors.