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Payroll Clerk Job Description

Publish: April 2, 2021

Author: StrongerTeams Editorial

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Payroll Clerk Job Description

Table of Contents

A Payroll Clerk gathers employee timekeeping reports, handles compensation benefits, and checks pay against hours worked.

Payroll Clerks handle staff grievances and are the first point of contact for any payroll inquiries. They also review and address any payroll mistakes in a timely fashion. Other responsibilities include ensuring that the payroll software’s database matches the hours worked by staff, salaries and overtime earned, and vacation days used.

Strong software and organizational skills are required, along with having proficiency in balancing numbers.

Similar Job Titles:

Payroll Tax Specialist, Payroll Manager, Payroll Assistant, Payroll Supervisor, Payroll Technician

What Does a Payroll Clerk Usually Do?

A Payroll Clerk is accountable for ensuring that the organization’s workers are paid correctly and on schedule.

Here’s a list of daily tasks a Payroll Clerk would be expected to complete:

Update staff tax and compliance status where needed
Initiate direct banking deposits
Maintain procedures and systems for payroll
Verify reports for timekeeping and notify workers of any inconsistencies
File payroll records and validate all balances in the database before making salary payments

Updating Staff Tax and Compliance Status

A Payroll Clerk must keep the existing tax records up-to-date and ensure they are reflected in the payroll software database properly. This task involves staying abreast of any changes to tax regulations and ensuring that the company remains compliant.

To maintain the accuracy of the data, the Payroll Clerk works closely with employees who haven’t had profile updates in a while, as well as new employees who might need to collect their tax information for the company.

Initiating Direct Banking Deposits

Payroll Clerks need to monitor payroll runs and initiate payments based on the cycle, such as weekly wages or monthly salaries. Once a payroll cycle is completed and payment has been made, Payroll Clerks will submit payslips to employees where required.

Maintaining Procedures and Systems for Payroll

Payroll Clerks use a variety of payroll and accounting systems. Part of the daily tasks is to ensure that all information in the systems is accurate and that there is no missing information from previous weeks or months. The payroll system needs to be maintained regularly so that payments can be made quickly and without issue when the pay cycle ends.

Verifying Reports for Timekeeping

Depending on the nature of the business, employees may need to keep timekeeping records using punch cards or biometrics systems. This ensures an accurate record of hours worked. Payroll Clerks need to run reports on these hours, verify that the information is correct, and adjust any incorrect hours in the timekeeping report.

Filing Payroll Records and Validating All Balances

Payroll Clerks need to maintain a database of all payments made to staff. The database needs to reflect the company’s actual staff expenses. To achieve this, all payroll records need to be filed regularly.

Roles a Payroll Clerk Typically Collaborates With

Payroll Clerks typically work under Payroll Managers or Supervisors, but depending on the structure of the organization, they may work closely with a number of different roles within the HR department. The most common ones include:

Roles Payroll Clerks Collaborate With
Payroll Coordinator	HR Specialist	Payroll and Benefits Specialist
Benefits Manager	Payroll Analyst	Payroll Accountant

Payroll Clerk Salary

The average annual income for a Payroll Clerk in the United States amounts to around $46,000.

Based on the experience, existing skill set, and the organization itself, the annual salary may vary from $35,000 and $56,000.

What is the Payroll Clerk Pay Difference by Location?

Location impacts the annual wage of a Payroll Clerk in the U.S. as follows:

City	Average Annual Salary
San Francisco, CA	$57,046
Seattle, WA	$49,899
Denver, CO	$46,152
Austin, TX	$44,883
Washington, D.C.	$50,803
Milwaukee, WI	$45,166
Boston, MA	$51,419
New York, NY	$54,901

What Is the Payroll Clerk Pay Difference by Experience?

Based on years of experience, a Payroll Clerk’s annual salary varies according to the table below:

Years of Experience	Average Annual Salary
< 1	$43,475
1–4	$44,866
5–9	$45,097
10–19	$47,138
20+	$51,503