How to become a Payroll Administrator
Follow these steps to get started:
- Pursue education. Payroll administrators often require only a high school diploma, while some employers require an Associate Degree in Accounting or Finance.
- Gain experience. Most of the procedural duties of a payroll administrator are company-specific, so the majority of what you need to know about payroll administration will come with experience.
- Become certified. The most common certification for this occupation is the Certified Payroll Professional credential, offered by the American Payroll Association.
- Continue education. Earning a bachelor's degree is required to move into advanced or supervisory roles.
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Typical qualifications for a Payroll Administrator
Skills employers are looking for
About Accounting
Experience with or knowledge of accounting principles, including the recording and measurement of business or financial transactions in any field of practice.
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About Financial concepts
Knowledge of and experience in articulating the principles, standards, and processes related to finance, ranging from basic fundamentals to advanced expertise.
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About Payroll
Experience processing or auditing payroll with the use of software such as Excel, QuickBooks, PeopleSoft, ADP, Workday, Kronos, Ceridian, or Lawson.
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About Accounting software
Experience in or knowledge of using a software system for processing accounting transactions.
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Payroll Administrator jobs in United States
Career progression for Payroll Administrator
Education levels for Payroll Administrators
| required level of education | percent of job openings |
|---|---|
| High school diploma or GED | 39.2% |
| Bachelor's degree | 31.5% |
| Associate's degree | 23.8% |
| Master's degree | 5.5% |
Common questions about career advices for a Payroll Administrator
What types of skills do I need to acquire to work as a payroll administrator?
The following skills are important for a payroll administrator:
- Strong math and accounting skills
- Communication
- Decision-making
- Discretion and attention to detail
What is the difference between a payroll administrator and a payroll coordinator?
While a payroll administrator is responsible for activities related to processing payroll checks, tax forms and other records in a small- to medium-sized business, a payroll coordinator communicates between the separate departments of an organization and the payroll department in a larger, multi-department company. The coordinator processes paperwork related to employees' vacation and enters new employees into the payroll system. Both require excellent math, communication and organizational skills.
What is the upward career path for a payroll administrator?
Payroll administrators who wish to advance their careers can veer in two different directions:
- Payroll data analyst. Becoming an analyst requires an in-depth knowledge of payroll systems and legal regulations, which you acquire during the course of your career as a payroll administrator. This role steps back from daily payroll processing duties and focuses more on data mining, identifying trends and suggesting improvements.
- Payroll manager/supervisor. With about five years' experience in payroll, you may consider using your knowledge and leadership skills to move into a management position. This role focuses more on the management aspect than hands-on payroll processing. This position can transition to the role of payroll director after several years of management experience, depending on the specific company.
