Payroll SpecialistJob Description, Salary, Career Path, and Trends
Payroll is an essential aspect of any business, and getting it right for both the company and its employees is critical. That’s where the payroll specialist comes in.
A payroll specialist typically manages and oversees all aspects of a company’s payroll. Payroll specialists handle myriad tasks, from collecting bank and direct deposit information to handling paper checks for employees, from maintaining accurate records to keeping up on taxation and much more. Payroll specialists often are called on to do it all, making this position a vital part of a crucial department for all businesses.
If you have the background, plus excellent math and communication skills, an eye for detail, and can balance many different projects and tasks at once, you may have the skills and interests to be a great payroll specialist.
Sample job description
New payroll specialist needed to work at [Your Company Name] in a full-time position. The payroll specialist will be responsible for managing and maintaining payroll for employees, as well as maintaining employee and salary databases. The ideal candidate may be required to take on a managerial position in the future, as well as manage certain aspects of the overall company budget. A degree is not required, but knowledge of accounting is extremely beneficial. If you are data-driven and scientific-minded, this position could be for you. It is required that you have a comprehensive understanding of tax laws and wage policies for local businesses. If you are interested in this position, please consider applying! Thank you for your interest.
Typical duties and responsibilities
Prepare and submit paper payroll checks for employees
Collect banking information for direct deposit setup and initiate deposits on paydays
Have a knowledge of and keep current with the taxation of salaries, benefits, and other factors
Process and monitor garnishment orders and other issues that impact payroll specifications
Maintain and document all payroll records
Reconcile the general ledger regarding payroll transactions
Detect and process issues with uncollected payroll
Respond to employee inquiries regarding payroll issues or concerns
Education and experience
This position requires a bachelor’s degree in accounting, finance, or a related field.
Required skills and qualifications
Several years of experience in payroll
Strong organizational and mathematical skills
Ability to maintain confidentiality regarding financial matters
Excellent knowledge of word processing tools and spreadsheets
Great attention to detail
Excellent mathematical skills
Experience managing payroll for a company with 20+ employees
Bachelor’s degree in finance or related field
Knowledge of local and state tax laws
2+ years working in payroll
Excellent written skills
Average salary and compensation
The average salary for a payroll specialist is $43,500 in the United States. Position salary will vary based on experience, education, company size, industry, and market.
Los Angeles, California
Minneapolis-St. Paul, Minnesota
New York City, New York
Typical work environment
A payroll specialist is required to maintain and manage payroll for company employees or clients. These specialists are required to maintain employee and salary databases, as well as check timesheets for accuracy. Some of the required tasks for a payroll specialist may be to handle direct deposits, input and modify data in a database, and ensure quality distribution of payments. Payroll specialists are required to work in an office or occasionally an online environment. The job requires a data-minded individual due to the number-heavy aspect of the position. Oftentimes, payroll specialists will work full-time, although this position is heavily dependent on the size of the business or the number of clients the payroll specialist will work for.
The typical work hours for a payroll specialist can be from 9 AM to 5 PM, Monday through Friday, in an office setting. However, longer or different hours can be necessary.
A payroll specialist can benefit from having certificates related to accounting and payroll work. Some of the common certificates that would be beneficial for a payroll specialist include:
Certified Payroll Professional (CPP). The Certified Payroll Professional certification is widely recognized and beneficial. It requires at least three years of previous experience in the payroll field. Because of this, this certification is recognized as a standard for excellence in a payroll professional and specialist.
Uniform Payroll Certification (UPC). The Uniform Payroll Certification is offered by the NBA as a certification to ensure techniques and payroll management skills are at a determined level. This is a good certification for any payroll specialist looking to have a recognized certification when looking for jobs or payroll specialist positions.
Fundamental Payroll Certification (FPC). The fundamental payroll certification is designed for entry-level payroll professionals to demonstrate a competent understanding of payroll software, tasks, and work in general. This certification is open to any payroll specialist and should be considered as a potential entry-level certification. It is recognized as a relevant certification for a payroll professional and does not require any previous work experience in the payroll field or related industries. This certification is issued after the relevant exam is completed successfully. It is offered by the American Payroll Association.
The career path for a payroll specialist starts with obtaining a bachelor’s degree in accounting, finance, or a related field. Candidates can further their career prospects and potential by completing classes or earning a certification from the American Payroll Association.
US, Bureau of Labor Statistics’ job outlook
SOC Code: 43-3051
Projected Employment in 2030
Projected 2020-2030 Percentage Shift
Projected 2020-2030 Numeric Shift
Although some aspects of the payroll process are being automated, jobs in this field are estimated to grow in the next handful of years at a rate that’s about average in comparison to careers across the board. This steady growth helps make the position of payroll specialist a stable career for interested and talented candidates.
Sample interview questions
Do you have any previous work experience in the payroll specialist field or any relevant certifications for this position?
Which payroll systems have you worked with?
If you were hired for this position, how would you go about ensuring that you understood the business payroll?
If you made a payroll error and are dealing with a disgruntled employee, what are your next steps?
How do you determine what is and isn’t an acceptable business expense?
How would you handle a situation or predicament where there is a misunderstanding with an employee?
What is FICA, and how is it calculated?
What benefits are taxable?
How do you follow changes and updates regarding IRS or location-specific regulations?
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