A payroll clerk is a person responsible for the financial record-keeping of employees’ salaries at a company. This position is important for ensuring employees are paid correctly and on time. Payroll clerks typically have experience with accounting and bookkeeping, and they use this experience to maintain accurate records of employee earnings. If you want to become a payroll clerk, we’ve got you! This article, however, covers everything about payroll clerk job description, skills, resume sample, and of course, salary.
What Is A Payroll Clerk?
A payroll clerk is a person responsible for the preparation of employee paychecks. It is an important position in any company that has employees. They typically work in accounting or human resources departments and may report to a senior accountant or payroll manager.
Payroll clerks ensure employees receive their payments when due and that all taxes and deductions are correct. They also maintain records of employee attendance, vacation, and sick days. Furthermore, the job description and salary of a payroll clerk are pretty high, depending on the qualifications, skills, and resume. Continue reading for more information!
What Is The Description Of Payroll?
The payroll clerk job description involves ensuring all company employees receive payouts accurately. This means keeping track of hours worked, calculating wages, and preparing and issuing paychecks. Payroll clerks may also be responsible for withholding taxes and other deductions from employee paychecks and for preparing and filing reports related to payroll.
To be successful in this role, a payroll clerk must have strong math skills and can keep accurate records. They must also be detail-oriented and able to meet deadlines. Excellent communication and customer service skills are also important, as payroll clerks often interact with employees to answer questions or resolve issues related to their pay.
What Are 3 Job Duties Of A Payroll Clerk?
A payroll clerk has many responsibilities, but their three primary duties are: to calculate employee pay, process employee taxes, and manage employee benefits.
- To calculate employee pay, the payroll clerk must first collect employee hours worked from timesheets or time-tracking software. They then calculate the appropriate wages for each employee based on their hours worked, taking into account any overtime or special rates. The payroll clerk also deducts any taxes or other withholdings from each employee’s pay.
- Once the clerk finishes calculating each employee’s pay, they must then process the employee taxes. This includes filing quarterly and annual tax reports, as well as paying any taxes owed to the government. The payroll clerk must also withhold taxes from each employee’s pay and remit them to the appropriate government agency.
- The clerk also manages employee benefits, such as health insurance and retirement plans. They may enroll new employees in benefit plans, update employee information in benefits and process benefit claims.
Payroll Clerk Qualifications And Skills
Payroll clerks typically have an associate’s degree in accounting or business administration. A payroll clerk must have the following skills:
- Strong math skills.
- Written and verbal communication skills.
- Computer skills, especially in payroll software.
- Analytical skills.
- Data entry skills.
- Attention to detail.
- Deadline-driven.
- Problem-solving.
- Flexibility and adaptability.
- Confidentiality, and others.
Note: Most payroll clerks work in offices and most times spend much time sitting at desks. They may work on computers for long periods and often have to meet deadlines. This means the tasks are much and need the above qualifications and skills to get the best results.
The Salary Of Payroll Clerk
The average salary for a Payroll Clerk is about $54 000 per year. Payroll clerks usually have a high school diploma or equivalent, and some college coursework in accounting or business administration is helpful. They work in an office environment and have regular office hours.
Some overtime may be required during busy periods, such as the end of the month or quarter. Hence, payroll clerks may work full or part-time, and their work hours and payments may vary depending on the needs of their employer.
How Is Payroll Calculated?
Payroll calculations are based on the employee’s pay regularity and hourly wage. So, you can calculate it in different ways, but the most common method is by using an employee’s hourly wage. To calculate an employee’s payroll, their hourly wage is multiplied by the number of hours they worked during the pay period. For example, if an employee earns $15 per hour and works 40 hours during the pay period, their payroll will be $600.
Another common method for calculating payroll is by using a salary. To calculate payroll using a salary, the salary is divided by the number of pay periods in a year. For example, if an employee earns a salary of $48,000 per year and gets it bi-weekly, their payroll will be $1,846.15 per pay period.
How Do I Prepare For A Payroll Clerk Interview?
If you apply for a payroll clerk position, you will likely sit with the hiring manager. This is your opportunity to show off your knowledge and skills and to demonstrate your fit for the job. However, here are a few tips to help you prepare for your interview:
- Do your research. First, learn about the company, its culture, and its business. This will help you understand the role of the payroll clerk in the organization and give you a better sense of what the interviewer is looking for.
- Be prepared to discuss your experience. Secondly, the interviewer will want to know about your background and qualifications. Be ready to talk about your previous experience with payroll and any other relevant experience you have.
- Prepare your documents: Thirdly, when you go to the interview, make sure you have all the necessary documents and information. This includes your payroll clerk’s resume, references, and any other documentation the company has requested.
- Be ready to ask questions. And finally, this is your chance to learn more about the company and the position. So, prepare some questions in advance, and be sure to ask about the company’s payroll process and procedures.
Thus, follow these tips and show the interviewer that you are the right candidate for the position.
How To Write An Effective Payroll Clerk Resume
Below are certain elements you should include in your payroll clerk resume to make it stand out and help you land a job.
- The first step is to include a strong, attention-grabbing headline. This headline should be concise and to the point and give the reader an idea of what to expect in the rest of the resume. For example, a headline such as “Experienced Payroll Clerk with 5+ Years of Experience” is specific and tells the reader exactly what they can expect.
- The next step is to include a summary of your qualifications. This summary should be a few sentences long and highlight your key strengths and experience. For example, you might say something like “I am an experienced payroll clerk with 5+ years of experience in processing payroll for small to medium businesses. I have strong attention to detail and I can work independently with little supervision.”
- After your headline and summary, list your key skills and strengths. For a payroll clerk, the resume should list special skills related to payroll, such as payroll software or calculating payroll taxes. If you received relevant awards or recognition, you should also list them to boost your qualifications.
- And lastly, avoid using excessive amounts of jargon or technical language, instead focus on conveying your qualifications in a way that is easy for a non-technical reader to understand.
Why Is It Called Payroll?
The term is a combination of the words pay (a verb) and roll (a noun). Payroll first appeared in English around the 1750s to describe a list of periodic wages given to employees as salary.
Is A Payroll Clerk An Accountant?
No, a payroll clerk is not an accountant. A payroll clerk is responsible for the preparation and processing of a company’s payroll. This includes ensuring that employees get their salaries on time. On the other hand, an accountant is responsible for a company’s financial records. This includes creating financial statements, recording and tracking income and expenses, and more.
Is Payroll Part Of HR Or Accounting?
Payroll is part of HR. It’s a vital part of HR operations because it ensures that employees are paid accurately and on time. Payroll also withholds the proper amount of taxes from each employee’s paycheck, which is a critical function of HR. Without accurate and timely payroll, employees will not receive accurate payments, and the company will be at risk of non-compliance with tax laws.
Is A Payroll Clerk The Same As A Payroll Administrator?
A payroll clerk maintains employee records and prepares paychecks, while a payroll administrator oversees the entire payroll process to ensure compliance with laws and regulations.
Both positions require strong math and organizational skills, as well as knowledge of payroll software. Meanwhile, payroll clerks may promote to payroll administrators, but the two positions have different responsibilities.
Is Payroll Clerk Stressful?
Yes, payroll is a stressful position. Working as a payroll clerk can be stressful for several reasons.
- First, there is a lot of responsibility that comes with the job. Employees trust that the payroll clerk will accurately calculate their pay and distribute it to them on time. If there are any mistakes, it can cause a lot of financial stress for the employees.
- Second, the job can have very deadlines. There are often strict deadlines that the clerk must meet to avoid penalties. So, it can lead to a lot of pressure.
Conclusion
A payroll clerk sees a company’s payouts, which includes calculating and processing employee pay, as well as maintaining employee records. They usually have strong math skills and experience with accounting software.
While the job description of a payroll clerk is mainly administrative, it is an important position that helps to ensure workers get their payments correctly and on time. However, this position can lead to other opportunities, such as becoming a human resources coordinator or an accountant.
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