what is a payroll administrator?
As a payroll administrator, you work in an organization's human resources or accounts department. You make sure every employee receives accurate pay on time. Since you oversee all activities associated with payroll management systems, your job includes administrative duties. For instance, you collect all the personal information of employees and the hours worked in every payroll cycle. After collecting the data, you organize, tabulate and use it to calculate the compensation package for the week or month based on the company's hourly rates or salary policy.
Most experts working in payroll departments need a finance and accounting degree or industry certification in payroll. You also need computation skills and attentiveness to details to avoid making mistakes during the calculations and allocation of salaries.
As a payroll administrator, you work alongside human resource professionals in various business sectors, including IT, retail, sales and marketing or construction. When working in a small organization, your duties include other human resource functions like hiring employees or training and development. In large companies, you will work alongside other human resource professionals and payroll specialists. Hence, your role involves handling payroll matters only. When working for a human resource consultancy, you work with various companies that outsource payroll instead of focusing on a specific company.
Would working as a payroll administrator suit your exceptional mathematics skills? Then read on to find out what competencies and qualifications you need to thrive in a payroll administrator role.
payroll administrator rolesaverage payroll administrator salary
According to our latest salary guide, the median salary of a payroll administrator is $56,000 per year for entry-level positions. Experienced payroll administrators receive a compensation package of $63,000 to over $75,000 annually. The salary structure varies depending on the company and the industry.
Apart from the base salary, some employers offer additional benefits, including medical insurance and various allowances. When you work overtime, your hourly rates will be higher than regular rates. Some companies also award yearly bonuses and rewards for top performance.
how to increase your salary as a payroll administrator
As a payroll administrator, your compensation package is influenced by personal factors like education and experience and external factors like the employer and location. Employers are willing to pay premium rates for the right experience and education. If you have a degree and additional certifications, your take-home salary will be higher. Your years of experience also influence your transferable skills, and employers always pay more for additional experience. You can increase your salary by attending training for other certifications or going for internships to improve your working knowledge.
The size of a company also impacts your earnings. If the company has limited resources, your salary may be lower. However, working for multinationals and big organizations guarantees higher pay due to job complexity. Companies in urban areas also tend to pay more due to the higher demand for payroll administrators.
types of payroll administrators
Payrolls administrators can be junior payroll specialists or lead administrators, depending on the size of the company and the roles performed.
- junior payroll administrator: as a junior payroll administrator, you perform the bulk of the administrative tasks in the payroll department. For instance, you verify staff information and working hours before computing their salaries. You also disburse the salaries and handle tax deductions according to the statutory requirements. You can work with a few other payroll specialists and report to the lead administrator.
- lead payroll administrator: as the lead payroll administrator, you supervise other payroll specialists and organize work schedules. You also audit payroll reports and deal with salaries for higher managers in the organisation. Sometimes, you also formulate payroll policies for organizations.
- external payroll administrator: when you work for an HR consultancy, you perform payroll activities for various companies. Your job is to calculate your client's payroll and statutory deductions without visiting their premises.
working as a payroll administrator
Becoming a payroll administrator involves processing employee salaries and other administrative duties. Read on to discover more about a payroll administrator's typical tasks and work schedules.
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payroll administrator job description
Some of the standard duties of a payroll administrator include:
- collecting employees' details: a payroll administrator collects and organizes the personal information of every employee. You also need to update the information regularly to ensure you have the current details of every worker. You keep track of terminated or retired employees and update the records accordingly.
- maintaining records of work hours: as a payroll administrator, you ensure workers log in their working hours. Since you will use the information to calculate payroll, you have to be alert to discrepancies in the attendance records. You will often manage issues related to timekeeping to avoid delays in employee payments. You should also make sure employees record any overtime hours on time for payment processing.
- calculating and processing employee salaries: after logging in the work hours of every employee, you will calculate the amount owed to them. The salaries should be transferred to the employees through the stipulated channels. You will ensure workers receive accurate payments on the selected dates. That means you will process weekly, monthly and quarterly payments for different employees in the company.
- preparing and processing statutory deductions: as a payroll administrator, you need to keep track of voluntary and involuntary deductions from paychecks every month. Your job is to ensure the deductions are accurate and remitted to the relevant authorities, as mistakes often lead to fines and compliance issues. Some voluntary deductions can include investment premiums, insurance premiums, retirement plans and healthcare insurance, while involuntary deductions are usually taxes.
- handling payment issues and preparing payroll reports: a payroll administrator files involuntary deductions reports, tax filing reports and voluntary deductions. The records are kept in company files for reference in case of discrepancies. Your job also includes handling payment issues like incorrect or delayed wages. You will monitor the local laws and any changes in legislation that affect salaries.
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work environment
As a payroll administrator, you work in any industry that needs payroll services for its employees. Some payroll administrators work in retail industries, manufacturing companies and the construction sector. Whether you work in a consultancy or as an in-house payroll administrator, you will work in an office environment. The common tasks of a payroll administrator are accomplished on a computer. Fortunately, most offices provide a conducive environment for desk jobs, like ergonomic chairs and well-lit rooms. You can also work remotely and complete all your duties with a computer and internet connection.
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who are your colleagues?
Depending on your employer, your colleagues may include HR managers, payroll specialists and employee relations specialists. You may also work alongside accountants and recruitment consultants, as well as other specialists like training and development officers, management consultants and lawyers.
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work schedule
The typical work schedule of a payroll administrator is 39 hours a week in a full-time position. Your workday runs between 8 am and 6 pm on weekdays, but you can work overtime and weekends during busier periods. Sometimes, you work on public holidays to avoid salary delays or compliance penalties for failing to remit statutory deductions on time. Part-time and freelance opportunities are also available for payroll administrators.
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job outlook
Your career prospects as a payroll administrator depend on the company you work for and your level of expertise. When starting, you will be the junior payroll administrator. After gaining experience, you can be the lead payroll administrator supervising other payroll specialists. This type of supervisory role opens doors to management positions in human resources and other departments. For instance, you can become an HR manager or switch to an accounting role.
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advantages of finding a payroll administrator job through Randstad
Finding your payroll administrator job through Randstad provides important advantages such as:
- a wide variety of training and development opportunities
- an experienced contact person to provide help if needed
- a range of opportunities in your area
- get paid weekly or monthly, depending on the job
- temporary and permanent contracts
Want a permanent contract? A temporary job as a payroll administrator is often a stepping stone to an attractive permanent job. Every year, thousands of people earn a permanent contract with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too!
payroll administrator skills and education
Some payroll clerk positions require only a high school diploma, but many call for college or university studies in accounting, finance or payroll administration as a minimum requirement.
Experience as a financial clerk is often a prerequisite for the position. Payroll clerks must be familiar with general accounting and software principles, have experience with office and accounting software, and be detail-oriented. Certification by the Canadian Payroll Association is an asset for those wishing to succeed in the payroll field.
skills and competencies
Some of the skills and competencies for payroll administrators include:
- problem-solving skills: as a payroll administrator, you handle multiple issues relating to compliance, taxes and miscalculations. You need exceptional problem-solving skills to deal with these issues logically and competently. You should also anticipate problems that could arise.
- computer and software proficiency: as a payroll administrator, you use various software to record employee data, record work hours and process payroll. Proficiency in using payroll-related software and computer skills makes your work easier.
- mathematical skills: you will excel in the role if you are good with numbers. You need exceptional numerical skills to handle complex data, numbers and calculations. Maths aptitude also helps you avoid mistakes when calculating deductions and preparing tax reports.
- organizational skills: as a payroll administrator, you have many tasks to complete for every pay cycle. Organizational skills help you stay on schedule with employees' pay and meet tax deadlines to avoid penalties.
FAQs
FAQs about working as a payroll administrator
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how much do payroll administrators make?
A payroll administrator earns an average salary between $46,000 and $64,000 annually when starting their career. With experience, the salary increases to $63,000 to over $75,000 per year.
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what is a payroll administrator job description?
It illustrates a payroll administrator's responsibilities and key tasks in an organisation. It also shows the skills that an employer expects from an applicant.
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what degree does a payroll administrator need?
A degree course isn't compulsory for payroll administrators. However, you can pursue a bachelor's or foundation degree in business management/administration.
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is payroll administration a stressful job?
Payroll administrators are under pressure to meet deadlines when payday is approaching. You can avoid the stress by organizing your schedule and ensuring your obligations are fulfilled on time.
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is payroll administrator a good career choice?
Becoming a payroll administrator is a promising career with an attractive salary and flexible work schedule. You will also have various growth opportunities.
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how do I apply for a payroll administrator vacancy?
Applying for a payroll administrator job is easy: create a Randstad profile and search our job offers for vacancies in your area. Then simply send us your CV and cover letter. Need help with your application? Check out all our job search tips here!
meet a recruiter
Make sure your resume is up-to-date, including information about your technical skills and certifications. Then share it with us to connect with a recruiter and be matched with job opportunities.
