Articles | Updated 29 October 2026
What Is an HR System? Payroll and Social Security in One Place
HR stands for Human Resources. An HR system looks after work related to staff, from employee records, shifts, time tracking, leave and overtime to calculating pay, social security and withholding tax. Small shops use an HR system so pay is right every month, without adding up working hours from paper.
What does an HR system include?
Employee records
What it does: Keeps history, position and pay rate
Example in a shop: 4 salespeople and 2 cashiers
Shifts and holidays
What it does: Sets working hours and annual holidays
Example in a shop: Morning shift at 8 am, afternoon shift at 2 pm
Attendance
What it does: Records actual clock-in and clock-out times
Example in a shop: Fingerprint scan, or clock in from a phone
Leave and overtime
What it does: Request leave, approve it, and calculate extra hours
Example in a shop: 1 day of sick leave, 4 hours worked on a holiday
Payroll
What it does: Adds up earnings, deducts social security and tax, issues payslips
Example in a shop: Closing the payroll run at month end
Tax and social security reports
What it does: Summarises amounts to remit
Example in a shop: PND.1 every month and PND.1A once a year
| Job | What it does | Example in a shop |
|---|---|---|
| Employee records | Keeps history, position and pay rate | 4 salespeople and 2 cashiers |
| Shifts and holidays | Sets working hours and annual holidays | Morning shift at 8 am, afternoon shift at 2 pm |
| Attendance | Records actual clock-in and clock-out times | Fingerprint scan, or clock in from a phone |
| Leave and overtime | Request leave, approve it, and calculate extra hours | 1 day of sick leave, 4 hours worked on a holiday |
| Payroll | Adds up earnings, deducts social security and tax, issues payslips | Closing the payroll run at month end |
| Tax and social security reports | Summarises amounts to remit | PND.1 every month and PND.1A once a year |
Example: calculating a 15,000 baht salary
Say an employee earns 15,000 baht a month, with no overtime and no other income, and claims only the personal and social security allowances this year.
Payroll
THB: 15,000
Social security deduction 5%
THB: 750
Withhold tax
THB: 0
Net pay
THB: 14,250
| items | THB |
|---|---|
| Payroll | 15,000 |
| Social security deduction 5% | 750 |
| Withhold tax | 0 |
| Net pay | 14,250 |
Why is the tax 0?
Annual income is 180,000 baht. Deduct expenses at 50%, capped at 100,000 baht, which gives 90,000 baht. Deduct the 60,000 baht personal allowance and 9,000 baht of social security for the year, leaving net income of 21,000 baht. That falls within the first 150,000 baht band, which is exempt, so the tax is 0.
In 2026 social security is calculated on wages up to 17,500 baht, so employees earning more than that pay at most 875 baht a month. A good payroll system applies this cap for you.
Does a small shop need separate HR software?
If you have hundreds of employees and need recruiting, performance reviews and development plans, dedicated HR software fits better. But a shop with a few to a few dozen staff that only needs time tracking, leave, payroll and correct tax is well served by the HR system inside an ERP, with the bonus that wages post to the books automatically and sales commission goes straight into payroll.
HR and payroll in GORINY
GORINY has employee records, shifts, holidays, clock-in from a phone or an import from a fingerprint scanner file, leave, overtime on normal days and holidays, payroll runs that need approval, social security and withholding tax deductions, payslips, and PND.1 and PND.1A files. HR and payroll are in the Business plan. GORINY does not yet have recruiting or performance reviews.
Frequently asked questions
- What is HR?
- HR stands for Human Resources. It means the work of looking after staff, from hiring, time tracking and pay through to leaving.
- How is an HR system different from a payroll system?
- A payroll system is part of an HR system. Payroll calculates wages, social security and tax, while an HR system covers all staff work, including time tracking and leave.
- How much is the social security deduction?
- Employees pay 5% of wages. In 2026 it is calculated on wages up to 17,500 baht, so the most deducted is 875 baht a month. The employer contributes the same rate.
- Should a payroll system produce PND.1?
- It should. PND.1 must be filed every month you withhold tax on staff salaries, and PND.1A once a year. A system that builds the files saves you adding up totals by hand.
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