If you want to become a payroll specialist, you first need to have a high school diploma or equivalent. A bachelor’s degree in business administration or accounting is also recommended. Before you start working as a payroll specialist, you should be familiar with tax laws and regulations as well as computer software programs used for payroll calculations. You may also be required to take courses in information systems and accounting.
The responsibilities of a payroll specialist include calculating gross wages and taxes, determining deductions from employee paychecks, completing tax forms and depositing funds into an account for the company. Some companies hire outside firms to handle their payrolls; however, some choose to hire an in-house payroll clerk who will handle all aspects of this job function.
How To Become Payroll Specialist
What does a payroll specialist do?
Payroll specialists oversee all aspects of timesheet and payroll processing to ensure payroll processing remains compliant, accurate and on-time. Specific responsibilities may vary based on the size of the company the payroll specialist works for and the industry of the company, but typically include:
- Preparing and submitting paper payroll checks for employees who do not have direct deposit
- Collecting banking information for direct deposit setup and processing deposits on paydays
- Familiarizing yourself and keeping current with policies relating to the taxation of salaries, benefits and other payroll factors
- Processing and monitoring garnishment orders and other issues that impact payroll specifications
- Documenting and maintaining all payroll records
- Conducting semi-annual audits of all payroll records
- Reconciling general ledger regarding payroll transactions
- Detecting and processing issues related to uncollected payroll
- Responding to employee inquiries regarding payroll issues or concerns
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Average salary
Payroll specialists are typically full-time employees, but may also be part-time or seasonal workers. Salaries for payroll specialists vary depending on their level of education, relevant work experience, the geographic location of the job, the size of the company and the industry of the company.
- Common salary in the U.S.: $19.71 per hour
- Some salaries range from $7.25 – $38.60 per hour.
Payroll specialist requirements
Securing a position as a payroll specialist may involve certain requirements depending on the industry and size of the company, including:
Education
Payroll specialists need a minimum of a high school diploma or General Education Development (GED) certificate. Many employers prefer candidates who also have a Bachelor’s Degree in Accounting or another related field. Relevant coursework includes computer payroll time reporting and processing, bookkeeping, computer accounting and benefits deduction.
Training
Payroll specialists often earn their roles through promotions from the position of a payroll clerk or as an entry-level position after completing the bachelor’s degree program. Payroll specialists will also often receive additional on-the-job training specific to their role and the company. This additional training is usually part of the on-boarding process for their new role. On-the-job training can last for a period of a few days up to a few months depending on the company and the role.
Certifications
There are several certification programs that payroll specialists may consider. Certifications allow you to prove your skills and qualifications to current and potential employers. Payroll specialists can also earn certifications to gain additional knowledge about their responsibilities and further their career advancement opportunities. Popular certifications for payroll specialists include:
Fundamental Payroll Certification
The American Payroll Association (APA) offers the Fundamental Payroll Certification (FPC) so entry-level payroll specialist candidates can prove their knowledge and proficiency relating to payroll fundamentals.
Certified Payroll Professional
The APA also offers the Certified Payroll Professional (CPP) certification to payroll specialists who have at least 18 months of experience working in a payroll position and who have completed several payroll practices and concepts courses.
Certified Bookkeeper
The American Institute of Bookkeepers offers the Certified Bookkeeper designation to individuals who have at least two years of professional experience in accounting, bookkeeping, accounts payable or a related field.
Microsoft Office certifications
Microsoft Office offers several certifications that verify an individual’s level of proficiency in using one or more of the five main Office apps – Word, Excel, PowerPoint, Access and Outlook.
Skills
Payroll specialists need a combination of several hard and soft skills to succeed in their role. Some of the most common skills required for a role as a payroll specialist include:
Communication skills
Communication skills involve the ability to communicate both verbally and non-verbally with active listening, observing, speaking and empathizing. Payroll specialists must have excellent verbal and written communication skills so they can communicate internally with employees to discuss and resolve payroll issues and concerns and can communicate with the rest of the payroll department.
Data entry skills
Data entry skills involve a combination of technical computer skills with strong attention to detail and accuracy. It is very important for a payroll specialist to be accurate in the data they are entering regarding employee time worked and compensation owed to ensure employees receive the correct amount of pay at the right time and to maintain accurate payroll records.
Time management skills
Time-management skills involve the ability to balance and prioritize responsibilities in a manner that helps you complete your work on time while also maintaining a work-life balance. It is very important for payroll specialists to have excellent time management skills as their responsibilities require them to spend their days multi-tasking and to ensure they process payroll in a timely manner and employees receive their pay on time.
Computer skills
Computer skills include a combination of typing, system and software knowledge. Payroll specialists need strong computer skills as their job responsibilities include typing and using programs such as Microsoft Office, QuickBooks, enterprise resource planning and automated payment processing systems such as ADP.
Payroll specialist work environment
Payroll specialists typically work full time within an office environment. Some payroll specialists may work part-time or seasonally. Payroll specialists typically work standard business hours on a Monday-Friday shift. They may spend most of their day working independently, but may also work with a team of payroll clerks, human resources and internally across departments.
How to become a payroll specialist
Here are the steps you should take to become a payroll specialist:
1. Get your education
Payroll specialists must have a minimum of a high school diploma or General Education Development (GED) certificate. Many employers prefer candidates who also have a Bachelor’s Degree in Accounting or another related field. Relevant coursework includes economics, accounting principles, spreadsheets, computerized accounting and taxes.
2. Gain relevant work experience
Many payroll specialists earn their positions through promotions from a role as a payroll clerk. Many employers prefer payroll specialist candidates who have at least five years experience working in a position related to payroll.
3. Get certifications
Certifications relevant to the position and industry of a payroll specialist are very important in helping you advance in your career. Popular certifications include the Fundamental Payroll Certification, the Certified Payroll Professional and Certified Bookkeeper certifications. Certifications help you prove your skills and qualifications and help you stand out as the best candidate for hiring managers and recruiters. These certifications may also help you advance your career to higher-level positions.
