What does a Payroll Analyst do?

A payroll specialist is primarily responsible for processing payroll and maintaining the employee database regarding salary and pay. Other duties include managing the company budget and expense as well as cooperating with different departments to increase payroll service performance and improve upon the payroll system. Typical career advancements for payroll specialist include a managerial or supervisory role in the company.

Although a high school diploma or equivalent is the minimal requirement for a payroll specialist, an associate's or bachelor's degree in business or accounting is preferred. Due to the nature of the position, a strong knowledge of tax and wage laws and common fiscal procedures is necessary along with excellent communication skills and computer literacy, especially with Microsoft Office applications. Ideal candidates are physically able to sit in front of a computer every work day for long hours at a time.

What responsibilities are common for Payroll Analyst jobs?
  • Process payroll for employees in the organization
  • Maintain personnel database regarding salaries
  • Manage organization budget and expenses
  • Report to department supervisor regarding daily activities and issues
  • Work directly with clients to achieve organization goals as required
  • Address and resolve employee complaints relating to the payroll system
  • Work with company database programs to process payroll
  • Prepare reports to relevant departments about payroll, company budget and expense
What are the typical qualifications for Payroll Analyst jobs?
  • Associate's or bachelor's degree in business or accounting preferred
  • Proven experience in a payroll position in a fast-paced environment required
  • Strong knowledge of tax and wage laws
  • Good understanding of the common fiscal procedures
  • Excellent verbal and written communication skills
  • Strong computer literacy including Microsoft Office applications
  • Exceptional multitasking and organizational skills
  • Able to work effectively with minimal supervision
  • Physically able to work seated in front of a computer for long hours at a time
EducationBachelor's Degree
Work/Life Balance
3.5 ★
Salary Range--
Career Opportunity
3.4 ★
Avg. Experience2-4 years

Payroll Analyst Salaries

Average Base Pay

$5,391 /month
Same as national average
Not including cash compensation
See More Insights
Not enough salaries reported to show distribution
Median: $5K
See More Insights
Glassdoor Estimated Salary

Payroll Analyst Career Path

Learn how to become a Payroll Analyst, what skills and education you need to succeed, and what level of pay to expect at each step on your career path.

Payroll Specialist
Senior Payroll Specialist
No Salary Reports
Lead Payroll Specialist
No Salary Reports
Payroll Analyst

Years of Experience Distribution

0 - 1
2 - 4
5 - 7
Not including years spent in education and/or training

Payroll Analyst Insights

Read what Payroll Analyst professionals have to say about their job experiences and view top companies for this career.
Payroll Specialist
12 Sept 2021

“I enjoyed my time with this company the people I worked with were great and the clients were great.”

Insight GlobalInsight Global
Payroll Administrator
26 Aug 2020

“Every single day this job challenges me to work on my personal growth and professional growth.”

Intel CorporationIntel Corporation
Payroll Specialist
26 Jun 2022

“Not impossible to maneuver but can be difficult depending on your personality or if you're new to work life.”

Move CentralMove Central
Senior Payrol Specialist
17 Jul 2022

“knit group of people who encourage each other to bring the best out of them.”

The State GroupThe State Group
Payroll Specialist
14 Aug 2021

“Great fun and very nice yes it”

Central Freight LinesCentral Freight Lines
Payroll Specialist
4 Feb 2022

“Good people and nice to work with”

Atalian ServestAtalian Servest
Payroll Administrator
29 Nov 2021

“The team I work with have been nothing but helpful in training me to do my role to the best of my ability.”

Payroll Administrator
23 Dec 2021

“Everyone can be super nice and helpful.”

See More

Payroll Analyst Interviews

Frequently asked questions about the role and responsibilities of payroll specialists

A payroll specialist uses accounting software to track employee salaries, work hours, time off, and other information. Their most common daily tasks include entering data for payroll transactions, processing employee information for new hires and changes, and managing the overall payroll workflow.

Working in payroll is an excellent career choice. The work is interesting and the hours are usually consistent except for occasional overtime if problems arise. Employees in payroll positions may connect with many people throughout the organization, which is ideal for those who enjoy a large network of associates.

Yes, payroll specialists get paid well. The average base pay for a payroll specialist in the U.S. is $5,391 per year. With experience, they can advance into a role such as a senior or lead payroll specialist and earn significantly higher salaries, $5,000 or $8,000 per year, respectively.

As with any job, there are some difficult aspects to being a payroll specialist. If a problem occurs with payroll, it can be challenging to find it, and it may require working overtime and staying until the payroll issue is resolved. For that reason, individuals who are thinking about becoming a payroll specialist must be focused and efficient to ensure all payroll deadlines are met.

Related Careers

HRis Analyst
25% skills overlap
HR Manager
25% skills overlap
Payroll Manager
63% skills overlap
Payroll Analyst
38% skills overlap

Payroll Analyst jobs