Payroll Clerk Job Description [Updated for 2025]

In the dynamic world of finance, the role of payroll clerks remains crucial.

As businesses grow and evolve, the need for proficient individuals who can smoothly handle, monitor, and secure our payroll procedures amplifies.

But let’s delve deeper: What’s really required of a payroll clerk?

Whether you are:

• A job seeker trying to understand the core responsibilities of this role,
• A hiring manager defining the perfect candidate,
• Or simply intrigued by the intricate details of payroll management,

You’re in the right place.

Today, we present a customizable payroll clerk job description template, designed for effortless posting on job boards or career sites.

Let’s get started.

Payroll Clerk Duties and Responsibilities

Payroll Clerks ensure employees are paid accurately and on time.

They deal with all payroll-related matters and are responsible for maintaining payroll files and reports.

Key duties and responsibilities of a Payroll Clerk include:

• Collecting and verifying hours worked by employees
• Processing payroll data and issuing employees’ paychecks and statements of earnings and deductions
• Computing wages and deductions, and entering data into payroll systems
• Recording employee information, such as exemptions, transfers, and resignations, to maintain and update payroll records
• Reviewing timesheets, work charts, wage computation, and other information to detect and reconcile payroll discrepancies
• Processing and issuing employee benefits such as health and pension plans
• Answering staff queries about wages, deductions, attendance, and time records
• Keeping track of leave time, such as vacation, personal, and sick leave, for employees
• Compiling reports on each pay cycle
• Ensuring compliance with federal and state regulations and guidelines

 

Payroll Clerk Job Description Template

Job Brief

We are looking for a qualified Payroll Clerk to assist in all activities regarding the management of employee compensation in our company.

The payroll clerk will undertake a variety of tasks such as entering payroll information, calculating wages and making payments.

The ideal candidate should be able to use payroll software with accuracy and efficiency.

They should be good with numbers and can be trusted with sensitive information.

They should also be very organized and possess strong attention to detail.

 

Responsibilities

• Collect and verify timekeeping information for all employees
• Calculate pay according to hours worked incorporating leaves and overtime
• Prepare and execute pay orders through an electronic system
• Enter data into payroll system to compute and post wages, deductions, or noncash benefits
• Resolve issues and answer payroll-related questions
• Prepare and submit reports with payroll information to supervisor
• Manage compensation packages using payroll software
• Report on payroll expenses
• Ensure compliance with relevant laws and internal policies

 

Qualifications

• Proven experience as payroll clerk or payroll manager
• Experience in data collection, entry and reporting with great attention to detail and confidentiality
• Solid knowledge of relevant legislation, policies and regulations
• Outstanding organizational and time management skills
• Excellent math ability and strong numerical skills
• Proficient in MS Office and good knowledge of relevant software and databases
• Trustworthy with attention to confidentiality
• Outstanding organizational ability with great attention to detail
• High school diploma or equivalent; BSc/BA in business, accounting or relevant field is a plus

 

Benefits

• 401(k)
• Health insurance
• Dental insurance
• Retirement plan
• Paid time off
• Professional development opportunities

 

Additional Information

• Job Title: Payroll Clerk
• Work Environment: This position operates in a professional office environment and routinely uses standard office equipment.
• Reporting Structure: Reports to the Payroll Manager or Human Resources Manager.
• Salary: Salary is based upon candidate experience and qualifications, as well as market and business considerations.
• Pay Range: $40,000 minimum to $55,000 maximum
• Location: [City, State] (specify the location or indicate if remote)
• Employment Type: Full-time
• Equal Opportunity Statement: We are an equal opportunity employer and value diversity at our company. We do not discriminate on the basis of race, religion, color, national origin, gender, sexual orientation, age, marital status, veteran status, or disability status.
• Application Instructions: Please submit your resume and a cover letter outlining your qualifications and experience to [email address or application portal].

 

What Does a Payroll Clerk Do?

Payroll Clerks typically work in the finance or human resources department of a company, handling all tasks related to payroll.

Their primary responsibility is to manage employee compensation.

They ensure that employees are paid accurately and on time.

This involves gathering and organizing timesheets, calculating hours worked, overtime, deductions, and bonuses.

They also administer employee benefits and expenses.

They are responsible for maintaining accurate records of these payments and deductions for future reference and for legal compliance.

They also handle queries and complaints from employees about their pay and deductions.

In addition, they work closely with other departments, including finance, to ensure payroll expenses are correctly allocated.

They may also liaise with tax authorities to ensure all tax obligations related to payroll are met.

Payroll Clerks also prepare reports for management detailing payroll expenses, overtime, sick leave, and other payroll-related metrics.

In some companies, Payroll Clerks are also involved in the recruitment process, providing information on salary scales and benefits to potential employees.

 

Payroll Clerk Qualifications and Skills

A proficient payroll clerk should possess a combination of technical skills, soft skills, and industry knowledge to accurately process company payrolls, including:

• Excellent numerical skills to accurately compute salaries, deductions, bonuses, and other payroll-related calculations.
• Proficiency in payroll software to effectively manage and maintain employee data and payroll information.
• Strong attention to detail to ensure accuracy in the preparation and distribution of paychecks, tax withholdings, and payroll deductions.
• Strong organizational skills to manage and maintain accurate records of all payroll transactions and ensure compliance with financial regulations and standards.
• Excellent communication skills to effectively handle queries and provide information to employees about their salaries, deductions, and other payroll-related concerns.
• Problem-solving skills to identify and rectify any payroll discrepancies or errors in a timely manner.
• Knowledge of payroll tax laws and regulations to maintain compliance and stay current with any changes that may affect payroll processing.
• Confidentiality skills, as they will be dealing with sensitive employee data and must maintain strict confidentiality at all times.

 

Payroll Clerk Experience Requirements

Entry-level Payroll Clerk candidates typically require 1-2 years of experience in bookkeeping, accounting or office work.

They often gain this experience through internships, part-time roles, or even relevant vocational programs.

During this time, they acquire foundational knowledge of payroll systems and regulations, as well as hands-on experience with data entry, record keeping, and basic office operations.

Candidates with more than 2-3 years of experience usually have a deeper understanding of payroll procedures, tax and wage laws, and are well-versed in payroll software.

These professionals often gain their experience in junior roles in the finance or human resources department, or as dedicated payroll assistants.

Those with more than 5 years of experience in payroll often possess leadership or supervisory experience, are proficient in managing payroll systems, and are adept at reconciling and rectifying payroll discrepancies.

Such candidates are usually eligible for senior payroll roles or managerial positions.

 

Payroll Clerk Education and Training Requirements

Payroll Clerks usually require a minimum of a high school diploma or equivalent qualification.

However, many employers often prefer candidates with an associate’s degree or higher in accounting, business administration, or a related field.

These programs usually offer coursework in basic accounting principles, spreadsheet software, and payroll practices, which equip the students with the necessary theoretical knowledge.

In addition to formal education, Payroll Clerks often undergo on-the-job training to become familiar with their employer’s specific payroll system.

This training might include entering data from timesheets, calculating pay and deductions, and learning to maintain accurate records.

Although not a requirement, Payroll Clerks may decide to earn professional certifications to demonstrate their expertise in the field and increase their job prospects.

The American Payroll Association offers the Fundamental Payroll Certification (FPC) and the Certified Payroll Professional (CPP) certification for those seeking to further their knowledge and skills.

Another beneficial skill set for Payroll Clerks includes knowledge of payroll software such as Quickbooks, ADP, and Microsoft Excel.

Employers often seek candidates who are proficient in these programs.

Overall, a commitment to continuous learning and keeping up to date with changing payroll laws and regulations is crucial in this role.

 

Payroll Clerk Salary Expectations

A Payroll Clerk can expect to earn an average of $40,500 (USD) per year.

The salary can fluctuate based on the level of experience, size of the company, and the geographical location.

 

Payroll Clerk Job Description FAQs

What skills does a Payroll Clerk need?

Payroll Clerks should possess excellent numerical skills and attention to detail as they work with large amounts of numerical data.

They should be proficient in using payroll software and other related computer applications.

They should also possess good communication skills for dealing with staff inquiries about payroll.

 

Do Payroll Clerks need a degree?

Payroll Clerks typically require a high school diploma or equivalent.

However, some employers may prefer candidates with an associate’s or bachelor’s degree in business or accounting.

On-the-job training is also a common requirement, and previous experience in a similar role can be beneficial.

 

What should you look for in a Payroll Clerk resume?

Look for candidates who have experience in payroll, accounting, or administration.

Proficiency in using payroll software and good knowledge of labor legislation are also critical.

Additionally, check for any certifications related to payroll, such as Certified Payroll Professional (CPP), which can demonstrate advanced knowledge and dedication to the profession.

 

What qualities make a good Payroll Clerk?

A good Payroll Clerk should have strong numerical accuracy and attention to detail, as even minor errors can cause significant problems in employees’ paychecks.

They should also have excellent organizational skills to manage multiple tasks at once and meet tight deadlines.

Confidentiality is another critical quality, as Payroll Clerks often handle sensitive employee information.

 

How challenging is it to hire Payroll Clerks?

The difficulty in hiring Payroll Clerks depends on the specific requirements of the role.

If you need a highly experienced Payroll Clerk or one with specific certification or software skills, it may take more time to find the right candidate.

However, there is generally a solid pool of candidates with basic payroll and administration skills to choose from.

 

Conclusion

There you have it.

Today, we’ve given you an inside look into the world of being a payroll clerk.

Surprised?

It’s not just about crunching numbers.

It’s about managing finances that fuel the heart of the business.

With our in-depth payroll clerk job description template and practical examples, you’re well-equipped to make your next move.

But why limit yourself here?

Venture further with our job description generator. It’s your ultimate tool for creating meticulous job listings or fine-tuning your resume to excellence.

Remember:

Every number you handle is a crucial piece of the organization’s financial puzzle.

Let’s forge your career path. Together.

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