Final answer:
True, the separation of the payroll and human resources departments is a fundamental aspect of good internal control, minimizing the risks of errors and fraudulent activities.
Step-by-step explanation:
For good internal control, it is true that the payroll function should be independent of the human resources department. This separation of duties ensures that no single individual or department has control over all aspects of employee data and payroll processing, which minimizes the risks of errors and fraudulent activities.
While the human resources department is primarily responsible for hiring, setting salaries, and maintaining employee records, the payroll department focuses on processing employee compensation, withholding individual income taxes, and ensuring that taxes and social security are accurately reported and paid to the government according to regulations like those enforced by the Internal Revenue Service.