Home » Payroll Technician Job Description

Payroll Technician Job Description

Publish: April 2, 2021

Author: StrongerTeams Editorial

Reading Time:

Payroll Technician Job Description

Table of Contents

A Payroll Technician runs the administrative and clerical tasks of the payroll function and ensures that employees are paid correctly and on time.

Reporting to a Payroll Supervisor or a Payroll Manager, the role demands attention to detail, comfort with tight deadlines, and a commitment to complete accuracy.

This is an entry-level position that can lead to later supervisory or management responsibility.

Similar Job Titles:

HR Specialist, HR Assistant, Human Resources Clerk, Benefits Assistant, Payroll Clerk

What Does a Payroll Technician Typically Do?

A Payroll Technician captures data, prepares payroll runs, fixes payroll mistakes, and reports on each payroll run to payroll management.

The role’s responsibilities include:

Collating and inputting work records and timesheets
Preparing payroll data
Capturing leave information
Validating and capturing overtime
Resolving payroll discrepancies and issues
Answering payroll-related queries
Reporting to payroll management

Collating and Inputting Work Records and Timesheets

While most work records are automated as part of the Human Resources Information System (HRIS), a Payroll Technician extracts them from the system and organizes them in the correct format for payroll purposes.

All the records require verification for completeness and accuracy before input into the payroll accounting system, and a Payroll Technician is responsible for making sure that each payroll run balances against the plan and forecast.

In rare cases, manual timesheets may have to be collected, verified, and added to the payroll run. In such instances, a Payroll Technician verifies that each record is accurate and carries with it the required sign-off, permission, and counter-signatures.

Preparing Payroll Data

With all the payroll data having been captured, a Payroll Technician transfers it to the payroll system, ensuring no data is lost or corrupted in the process.

This task involves a large amount of data and requires deep concentration and total accuracy. A Payroll Technician needs time management skills to make sure the preparation process can be completed without distractions.

Mistakes or issues in the transfer of data to the payroll system can cause havoc, and experienced Payroll Technicians develop a series of cross-checks to guarantee data integrity. Any issues found must be corrected before the payroll run and flagged to payroll management for possible corrective action.

Capturing Leave Information

All annual, sick, and emergency leaves should be captured correctly and completely on the payroll system. A Payroll Technician checks that all leave records are accompanied by the required permissions, records, and sign-offs and that remaining leave days are calculated correctly.

Validating and Capturing Overtime

Overtime can amount to a large percentage of the total salary mass, so all overtime records are verified for accuracy before input into the payroll system.

A Payroll Technician checks that each overtime record is accompanied by the required management authorization documents and clocking system records to verify the accuracy and authenticity.

Resolving Payroll Discrepancies and Issues

Payroll mistakes are a major cause of discontent among staff, so a Payroll Technician tries to resolve any disputes or discrepancies as quickly and equitably as possible.

Wherever the fault for the issue lies, a Payroll Technician should be friendly and helpful towards the affected employees.

Speed of resolution is crucial, but a Payroll Technician also needs to analyze whether an issue was caused by an input error or a systemic failure. If a systemic failure occurs, the matter is passed on to the Payroll Manager and the IT department to ensure a sustainable fix is implemented.

Answering Payroll-Related Queries

Employees regard a Payroll Technician as the first point of contact for payroll-related issues, so the role requires a friendly, helpful, and service-driven mindset.

Experienced Payroll Technicians know that time management is an important skill in their role, so they designate specific times during each week to answer employee payroll queries.

Reporting to Payroll Management

Management requires reports after each payroll run to measure its speed, accuracy, and completeness.

These three factors should be trended to monitor whether the payroll function is improving in its efficiency.

A Payroll Technician prepares these reports in a clear and understandable format and adds comments on the payroll process from the technical point of view.

Roles a Payroll Technician Typically Collaborates With

A Payroll Technician works closely with the following roles:

Collaborative Roles
Payroll Manager	Benefits Manager	HR Coordinator
HR Manager	Payroll Tax Specialist	Payroll Supervisor
Payroll Director	Benefits Specialist	Payroll Analyst

Payroll Technician Salary

A Payroll Technician will typically earn between $41,000 and $52,000 annually in the U.S. The median lies at $45,800.

What Is the Payroll Technician Pay Difference by Location?

The average salary for a Payroll Technician is influenced by location as follows:

City	Average Salary
Austin, TX	$45,044
Boston, MA	$51,603
Denver, CO	$46,318
Seattle, WA	$50,078
Washington, D.C.	$50,985
Milwaukee, WI	$45,328
New York, NY	$55,098
San Francisco, CA	$57,250

What Is the Payroll Technician Pay Difference by Experience Level?

A Payroll Technician’s experience will give the following variations in pay:

Experience Level	Average Salary
< 1 year	$43,791
1–4 years	$44,949
5–9 years	$45,181
10–19 years	$45,181
20+ years	$45,181