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Payroll Accountant Job Description

Publish: April 17, 2021

Author: StrongerTeams Editorial

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Payroll Accountant Job Description

Table of Contents

A Payroll Accountant is a mid-level operative in the payroll department and administers the payroll function.

With a strong accounting and payroll background, a Payroll Accountant oversees more junior payroll staff and is responsible for ensuring payroll accuracy and compliance.

Similar Job Titles:

Benefits Coordinator, Human Resources Team Leader, Human Resources Associate, Payroll and Benefits Specialist, Payroll Coordinator, Payroll Assistant

What Does a Payroll Accountant Typically Do?

A Payroll Accountant checks, manages, and oversees all the payroll tasks in an organization and reports to the Payroll Manager.

The job’s specific tasks include:

Ensuring work records are captured correctly and completely
Ensuring wage and salary calculations are correct
Checking and verifying deductions
Overseeing the distribution of paychecks and direct deposits
Managing payroll information updates
Reporting to management on tax, leave, payroll, and benefits
Rectifying payroll issues
Answering employee queries
Leading and managing the payroll team

Ensuring Work Records Are Captured Correctly and Completely

In organizations that operate on shift or clocking systems, work records form the basis for weekly or monthly wage calculations.

A Payroll Accountant ensures the payroll team has received and captured all the work records correctly.

Although the system is usually automated through biometric clocking software, the payroll team verifies all the data for accuracy and checks with the relevant manager if discrepancies are spotted. A Payroll Accountant signs off on the work records once they have been validated.

Ensuring Wage and Salary Calculations Are Correct

Errors or inconsistencies in payroll calculations occur as a result of either input mistakes or system issues.

The payroll team, under the supervision of a Payroll Accountant, checks all the wage and salary calculations against the payroll budget and previous payroll runs to identify errors and then investigates any discrepancies found.

Input errors are fixed immediately, but any system issues found must be reported to the system administrator for rectification.

Checking and Verifying Deductions

Payroll deductions include tax, garnishments, and benefits contributions and must be consistent and accurate. Deductions are usually calculated automatically by the payroll software, but some—particularly garnishments—may have to be inputted manually.

The payroll team makes the required manual deductions and passes the completed deductions worksheet to a Payroll Accountant for verification. They perform a series of random sample tests and check departmental totals before signing off the deductions and finalizing the payroll run.

Overseeing the Distribution of Paychecks and Direct Deposits

Having completed the payroll run, a Payroll Accountant makes sure payroll staff has paid employees correctly and on time.

Payments are mostly made by direct deposit, but in some instances, physical paychecks may have to be distributed. The payroll team, supervised by a Payroll Accountant, checks these for correctness, logs their dispatch, and collates the receipt confirmations once they have been delivered.

Managing Payroll Information Updates

A Payroll Accountant ensures the payroll team performs any payroll information updates quickly and correctly.

The updates include promotions, retrenchments, annual salary increments, and changes to benefits scheme contributions.

Each change must be verified and entered manually, and a Payroll Accountant may perform a dummy payroll run after any wide-ranging updates to verify that they are reflecting correctly on the payroll system.

Reporting to Management on Tax, Leave, Payroll, and Benefits

Payroll often represents the largest cost element to an organization’s financials. A Payroll Accountant prepares management reports after each payroll run, highlighting:

Payroll accuracy
Payroll timing
Benefits contributions
Uptake since the last payroll run
The leave status of the workforce
Tax paid through employee contributions

A Payroll Accountant reports on any anomalies or issues and trends the data to show payroll development over time.

Rectifying Payroll Issues

A payroll team, under the supervision of a Payroll Accountant, ensures that any payroll issues are dealt with quickly and accurately.

Most issues can be corrected by team members, but Payroll Accountants may involve themselves in more complicated problems.

Answering Employee Queries

Payroll can be a major contributing factor to the happiness and smooth running of an organization and is often confusing for an employee.

A Payroll Accountant assists the payroll team in answering any payroll-related questions from employees, making sure the team remains friendly, polite, and helpful.

Leading and Managing the Payroll Team

A Payroll Accountant sits between the payroll operatives and payroll management and plays an important role in the leadership of the team.

Experienced Payroll Accountants train, coach, and mentor their team members, assisting them in taking on more responsibility and growing within the organization.

Roles a Payroll Accountant Typically Collaborates With

A Payroll Accountant works together with the following roles:

Collaborative Roles
Payroll Manager	Payroll Coordinator	Payroll Tax Specialist
Compensation and Benefits Manager	HR Manager	Human Resources Executive
Benefits Manager	Benefits Administrator	Benefits Analyst

Payroll Accountant Salary

A Payroll Accountant can earn between $59,000 and $73,000 a year in the U.S. Median earnings are $65,142.

What Is the Payroll Accountant Pay Difference by Location?

A Payroll Accountant’s earnings are affected by the job location as follows:

City	Average Salary
Boston, MA	$73,396
New York, NY	$78,366
Washington, D.C.	$72,516
Austin, TX	$64,067
Denver, CO	$65,878
San Francisco, CA	$81,428
Seattle, WA	$71,226
Milwaukee, WI	$64,471

What Is the Payroll Accountant Pay Difference by Experience Level?

The number of years in the job has the following effect on a Payroll Accountant’s earnings:

Experience Level	Average Salary
< 1 year	$62,713
1–4 years	$63,685
5–9 years	$65,695
10–19 years	$67,574
20+ years	$67,906