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Snapshot

Snapshot

Career Cluster(s): Business Administration

Interests: Bookkeeping, accounting, business administration, data processing, finance

Earnings (Yearly Median): $43,890

Employment & Outlook: Little to No Change in Growth Expected


Profile

Profile

Working Conditions: Work Indoors

Physical Strength: Light Work

Education Needs: High School Diploma or GED, Technical/Community College

Licensure/Certification: Usually Not Required

Physical Abilities Not Required: No Heavy Labor

Opportunities For Experience: Internship, Military Service, Part-Time Work

Holland Interest Score*: CRS

[1] * See Appendix A


Duties and Responsibilities

Duties and Responsibilities

  • Calculating regular and overtime earnings

  • Computing deductions such as income tax withholdings, social security, credit union payments, insurance, bond purchases and union dues

  • Preparing checks and master payroll sheets or forms

  • Preparing and distributing electronic payments and pay envelopes

  • Maintaining records of sick leave, vacation and nontaxable wages

  • Compiling and maintaining wage information forms for tax purposes

  • Maintaining accurate year-to-date wage information on each employee


Relevant Skills and Abilities

Relevant Skills and Abilities

Interpersonal/Social Skills

  • Cooperating with others

  • Having good judgment

  • Working as a member of a team

Organization & Management Skills

  • Paying attention to and handling details

  • Performing routine work

Research & Planning Skills

  • Identifying problems

Technical Skills

  • Performing scientific, mathematical and technical work

  • Using technology to process information

  • orking with data or numbers

  • Working with machines, tools or other objects


Famous First

Famous First

The first annual federal income tax was instituted in 1913 under the 16th Amendment to the US Constitution. The first filing deadline for income tax returns was March 1, 1914 and the form was four pages long. There were six different income brackets, with people in the highest bracket paying 6 percent. In just three years the top rate jumped to 67 percent and for many years afterward the top rate stayed above 75 percent. Since the 1980s, however, it has been below 40 percent.

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Careers in Business

Payroll Administrator

by Simone Isadora Flynn

⇒ View PDF: View this Article as a PDF

Overview

Sphere of Work

Payroll administrators implement all stages of the payroll process for their organization. In particular, payroll administrators are timekeepers who track employee hours and time worked as well as employee commissions and benefits. They must also process paychecks on a regular basis. Payroll administrators are knowledgeable about and help implement changes to insurance deductibles and payments as well as social security and taxes. Payroll administrators often work alongside benefits specialists and certified public accountants in payroll, personnel, or accounting departments.

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Work Environment

Payroll administrators work in offices in organizations such as businesses, hospitals, insurance companies, educational institutions, government agencies, and various branches of the military. Depending on employer and particular job description, a payroll clerk may telecommute from a home-office, visit client offices as a contractor, or work on a full-time basis in an employer's office. Payroll administrators may be hired as full-time members of payroll teams or as term-of-project contractors. Most payroll administrators work forty-hour weeks, but overtime may be necessary during periods of increased seasonal employment.

Occupation Interest

Individuals attracted to the payroll administrator profession tend to be organized and detail-oriented people who find satisfaction in tracking financial information. Those individuals who excel as payroll administrators exhibit financial and mathematical acumen, intense focus, responsibility, accuracy, and effective time management. As they are responsible for compensation and employees' confidential financial information, prospective payroll administrators must be honest, trustworthy, meticulous, and highly organized. Payroll administrators should enjoy bookkeeping and have a background in accounting or human resources.

A Day in the Life—Duties and Responsibilities

The payroll administrator's specific daily occupational duties and responsibilities depend on the individual's job specifications and work environment. In general, a payroll administrator tracks and records employee attendance, hours, bonuses, commissions, sick leave, paid vacation days, and nontaxable wages. Payroll administrators may develop their own systems for employee timekeeping or follow their organization's existing system. At the end of every pay period, payroll administrators calculate required deductions, including insurance payments, income taxes, and social security payments. In addition to regular deductions, employees may owe one-time annual deductions, such as union dues or medical savings account contributions.

Payroll administrators are responsible for generating paychecks by manually preparing and signing checks or using an automated payroll program. They may manually record the calculated figures onto checks, stubs, and master payroll sheets, or in automated programs, they need only type the wage data into the computer system. Paychecks are either distributed to employees by hand or processed through direct bank deposit into their personal bank accounts. In instances of paycheck error, payroll administrators work with employees to correct the error and ensure proper payment.

Payroll administrators may participate in workshops or training programs offered by the personnel or human resources departments to educate employees about benefits, time sheets, and insurance options. Those employed by learning institutions may also be involved in discussions of work teams, workflows, dynamics, and best practices. In addition, all payroll administrators are responsible for complying with regulatory requirements for financial institutions as well as providing financial records and reports to accountants involved tax preparation and auditing

Work Environment

Physical Environment

Payroll administrators generally work in bright, pleasant office environments in businesses and organizations that have paid employees. The work of a payroll administrator requires sitting at a desk and using computers for long periods each day.

Plant Environment

Payroll administrators working in plant or manufacturing environments supervise the organization's employee timekeeping and payroll. While a payroll administrator's office in a plant environment is most often kept separate from production lines, he or she may experience physical risks resulting from production fumes, noise, or plant accidents.

Human Environment

A payroll administrator's human environment may be social or isolated, depending on assignment and organization. Payroll administrators may interact regularly with employees, supervisors, or colleagues.

Technological Environment

During the course of their work, payroll administrators use Internet communication tools, financial software programs, adding machines and calculators, fax machines, photocopying machines, scanners, and postal machines. They must also consult tax and insurance tables and laws regarding employee compensation and work hours.

Education, Training, and Advancement

High School/Secondary

High school students interested in pursuing a career as a payroll administrator should prepare themselves by building good study habits and by developing an ease with numbers and mathematical functions. High school classes in English, typing, bookkeeping, and mathematics will provide a strong foundation for work as a payroll administrator or college-level study in the field. Interested high school students should pursue internships or part-time employment opportunities that familiarize them with business and finance.

Suggested High School Subjects

  • Bookkeeping

  • Business

  • Business & Computer Technology

  • Business Data Processing

  • Business Math

  • College Preparatory

  • English

  • Keyboarding

Postsecondary

Although an undergraduate degree is not strictly required for payroll administrators, students interested in becoming payroll administrators should work towards an associate's degree or a bachelor's degree in bookkeeping, accounting, secretarial science, or general business. Mathematics, communications, data processing, and business courses may also prove useful for their future work. Students can gain work experience and potential advantage in their future job searches through internships or part-time employment with local businesses or financial organizations.

Related College Majors

  • Accounting Technician Training

  • Business Administration & Management

  • Office Supervision & Management

AAdult Job Seekers

Adults seeking employment as payroll administrators should have at least a high school diploma or an associate's degree. Most employers provide on-the-job training for new payroll administrators, but may prefer to hire candidates with higher education and/or familiarity with computer systems. Adult job seekers should educate themselves about the educational requirements of the organizations where they seek employment. Qualified adults seeking payroll administrator positions may benefit from joining professional payroll associations, such as the American Payroll Association, to help with networking and job searching. These associations generally offer professional development events and maintain lists and forums of available payroll jobs.

Professional Certification and Licensure

Certification and licensure is not required for general payroll administrators but may be required as a condition of employment or promotion. Options for voluntary payroll administrator certification include the Fundamental Payroll Certification (FPC) and the Certified Payroll Professional (CPP). The FPC and the CPP, offered by the American Payroll Association, are earned by passing a national examination. To qualify for the CCP certification, candidates must have at least three years of work experience in the field and complete approved training courses in payroll. There are no experience or training prerequisites for the FPC examination, although test preparation is recommended.

Additional Requirements

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Individuals who find satisfaction, success, and job security as payroll administrators will be knowledgeable about the profession's requirements, responsibilities, and opportunities. Membership in professional payroll associations is encouraged among all payroll administrators as a means of building professional community. Payroll administrators who are members of a professional association must adhere to a strict code of ethics and conduct.

Fun Fact

America's 156 million wage earners and the payroll professionals who work with them contribute, collect, report and deposit approximately $1.97 trillion, or 68.9%, of the annual revenue of the U.S. Treasury.

Source: www.nationalpayrollweek.com and www.americanpayroll.org

Earnings and Advancement

Earnings of payroll administrators depend on the size and geographic location of the employer, and the employee's experience and skills. Median annual earnings of payroll administrators were $43,890 in 2017. The lowest ten percent earned less than $28,130, and the highest ten percent earned more than $63,180.

Payroll administrators may receive paid vacations, holidays, and sick days; life and health insurance; and retirement benefits. These are usually paid by the employer.

Metropolitan Areas with the Highest Employment Level in This Occupation

Metropolitan area Employment Employment per thousand jobs Hourly mean wage New York-Jersey City-White Plains, NY-NJ 6,480 0.97 $23.38 Los Angeles-Long Beach-Glendale, CA 5,730 1.29 $22.29 Houston-The Woodlands-Sugar Land, TX 3,830 1.31 $22.09 Dallas-Plano-Irving, TX 3,170 1.27 $23.32 Chicago-Naperville-Arlington Heights, IL 2,790 0.76 $22.60 Anaheim-Santa Ana-Irvine, CA 2,670 1.65 $24.95 Atlanta-Sandy Springs-Roswell, GA 2,600 0.99 $22.44 Boston-Cambridge-Newton, MA 2,150 1.17 $24.48 San-Diego-Carlsbad,CA 2,140 1.50 $23.98 Riverside-San Bernardino-Ontario, CA 2,080 1.45 $22.18

Source: Bureau of Labor Statistics.

Employment and Outlook

There were approximately 152,990 payroll administrators employed nationally in 2017. They can be found in every industry, but a growing number work for accounting and payroll services firms that complete payroll functions for companies. Employment is expected to experience little to no change in growth through the year 2026, which means employment is projected to increase 1 percent. Job growth will likely be limited due to the continuing automation of payroll functions which makes these workers more productive.

Employment Trend, Projected 2016–26

Payroll Administrators and Financial Clerks: 0%

Total, All Occupations: 7%

Office and Administrative Support Occupations: 7%

Note: “All Occupations” includes all occupations in the U.S. Economy. Source: U.S. Bureau of Labor Statistics, Employment Projections Program.

Related Occupations

  • Bank Teller

  • Billing Clerk

  • Bookkeeper and Accounting Clerk

  • Cashier

  • Statistical Assistant

Related Military Occupations

  • Finance & Accounting Specialist

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Selected Schools

Most technical and community colleges offer programs in business administration, including payroll administration. Interested students are advised to consult with their school guidance counselor or to research area postsecondary schools and training programs.

More Information

American Payroll Association

660 North Main Avenue, Suite 100

San Antonio, TX 78205-1217

210.226.4600

www.americanpayroll.org

Association of Records Managers & Administrators

11880 College Boulevard, Suite 450

Overland Park, KS 66210

800.422.2762

www.arma.org

Citation Types

Type
Format
MLA 9th
Flynn, Simone Isadora. "Payroll Administrator." Careers in Business, edited by Michael Shally-Jensen, Salem Press, 2015. Salem Online, online.salempress.com/articleDetails.do?articleName=CIB_0023.
APA 7th
Flynn, S. I. (2015). Payroll Administrator. In M. Shally-Jensen (Ed.), Careers in Business. Salem Press. online.salempress.com.
CMOS 17th
Flynn, Simone Isadora. "Payroll Administrator." Edited by Michael Shally-Jensen. Careers in Business. Hackensack: Salem Press, 2015. Accessed September 17, 2025. online.salempress.com.