Payroll Clerk

Your Fit

Income

$55K

Preparation

Medium

Growth

-16.4%

Definition
Your fit with this career
How much they earn
What they do
Job satisfaction
How to become

What is a Payroll Clerk?

A Payroll Clerk is responsible for managing and overseeing the payroll processing in organizations. This role involves ensuring accurate calculation of wages, processing of taxes, and the maintenance of payroll records.

Sample job titles:

Payroll Assistant, Payroll Clerk, Payroll Coordinator, Payroll Specialist

Your test results

Why this fit score?

The fit report shows your areas of fit and misfit with Payroll Clerk.

Fit report

Test scores

The scores report summarizes what we learned about you. It shows your results on everything measured in the career test.

Scores report

How much does a Payroll Clerk earn

According to the U.S. Bureau of Labor Statistics, typical income (in USD) in 2024 was...

Bottom 10%	Bottom 25%	Median (average)	Top 25%	Top 10%
$37K per year	$45K per year	$55K per year	$66K per year	$79K per year

Compared to other careers: Median is $5.79K above the national average.

See income by country/state/province

What does a Payroll Clerk do?

Work environment

Payroll Clerks typically work in office settings, often within the human resources or finance departments of various organizations. They spend much of their time working with computers and payroll software, and may also interact with employees for payroll inquiries.

Quick task list

Processes payroll transactions including salaries, benefits, garnishments, taxes, and other deductions.
Ensures accurate and timely processing of payroll updates including new hires, terminations, and changes to pay rates.
Prepares and maintains accurate payroll records and reports.
Complies with federal, state, and local payroll, wage, and hour laws and best practices.
Coordinates with the HR department to ensure proper flow and maintenance of employee data.

See full list of tasks with expert relevance ratings

Areas of specialization

Tax Compliance: Specializing in managing and ensuring compliance with local, state, and federal tax regulations.
Benefits Administration: Focusing on managing employee benefits in relation to payroll, such as insurance and retirement plans.
Payroll Systems Management: Specializing in the management and optimization of payroll software and systems.
International Payroll: Managing payroll for employees in multiple countries, understanding various international payroll laws and practices.
Auditing and Compliance: Focusing on auditing payroll records for accuracy and compliance with legal requirements.

Description

The role of a Payroll Clerk is critical in any organization, ensuring that employees are paid accurately and on time. They must have strong attention to detail to manage complex payroll systems and ensure compliance with various tax and employment laws. This role requires a good understanding of payroll procedures, tax laws, and benefits administration.

Strong organizational skills are essential, as Payroll Clerks handle a high volume of data and must maintain accurate and up-to-date payroll records. They also need good communication skills to interact with employees and resolve payroll-related queries.

Continual learning is important in this role to stay updated with changing payroll regulations and technologies. Payroll Clerks often work under tight deadlines, especially during payroll processing periods, which requires good time management and stress management skills.

Job Satisfaction

Sources of satisfaction

Playing a key role in ensuring the financial well-being of fellow employees.
The satisfaction of working with numbers and detailed data.
Opportunities to improve processes and systems for payroll management.

You might make a good Payroll Clerk if you are...

Detail-oriented, with a strong aptitude for numbers and data accuracy.
Good at managing time and meeting strict deadlines.
Familiar with payroll software and comfortable with technology.
A strong communicator, able to handle queries and communicate effectively.
Interested in finance and human resources management.

Pros:

Steady, detail-oriented work in a vital business function.
Opportunities for advancement in finance or human resources.
Growing demand with the expansion of businesses.

Cons:

Can be repetitive and require meticulous attention to detail.
High responsibility, as errors can directly impact employee compensation.
Need to constantly update knowledge of tax laws and payroll regulations.

How to become a Payroll Clerk

Typical education

The role of a Payroll Clerk usually requires a minimum of a high school diploma, with many employers preferring candidates who have completed some post-secondary education in accounting or related fields, amounting to about 2-4 years of education.

High school preparation

Courses:

Mathematics, especially courses in accounting or business math.
Computer Science, to become proficient with software and technology.
Business Studies, to understand basic business operations.

Extra-Curricular Activities:

Joining a math or business club.
Volunteering for administrative roles in school or community organizations.
Engaging in activities that require attention to detail and organization.

Preparation after high school

Pursuing an associate's degree in accounting, business administration, or a related field.
Gaining experience through internships in finance or HR departments.
Seeking certifications like Certified Payroll Professional (CPP) for advanced knowledge and skills.

More resources

American Payroll Association (APA) - Offers resources and certification programs for payroll professionals.
Occupational Information Network (O*NET Online) - Provides detailed information on various occupations, including Payroll Clerks.
National Association of Professional Accountants (NAPA) - Provides educational resources and networking opportunities.
PayrollTalk - A community forum for discussing payroll-related topics.

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Similarity is based on what people in the careers do, what they know, and what they are called. The process of establishing similarity lists is described in this white paper.