This is a key question to ask because it shows you whether or not the payroll manager is familiar with the software that your organization uses. It also gives you insight into the candidate’s level of experience with different types of payroll systems. The applicant’s answer should also include information about the types of payroll systems, including on-premises and cloud-based solutions. What to look for in an answer:

• Listing of payroll systems
• Years of experience
• Description of features they liked and didn’t like in the systems

The payroll manager’s answer to this question shows their understanding of the requirements for handling the taxes of an employee versus a contractor. It also demonstrates their knowledge about the status of each type and what rights each worker has under the law. This answer is important if your company ever uses contractors or if it may use them in the future. What to look for in an answer:

• Clear definition of contractor versus employee
• Understands how payroll taxes work for contractors
• Familiar with payroll taxes applied to employees

This is a good question to ask because it shows the applicant’s ability to stay calm in a stressful situation with a lower-level employee. The ideal candidate will be able to deliver bad news in a neutral way to avoid escalating the issue. They’ll also be able to explain how they deal with the other person’s strong emotions when receiving such news. What to look for in an answer:

• Willingness to deliver bad news
• Ability to listen calmly and address concerns
• Clear and concise written and oral communication skills

You should ask a potential hire this question because it shows you how organized they are in their work. A successful payroll manager should know what needs to be done and when. The ideal candidate will be able to clearly explain their methods or routines for processing workloads and verifying that all of the required activities have been completed on time. What to look for in an answer:

• Description of their organizational system
• Examples of tools, applications or systems they use for staying organized
• Understanding of process for verifying work completion

You should ask this question because it shows that the applicant stays up to date on policies and laws that affect the payroll process. An ideal payroll manager reviews updates to laws at the local, state and national level as they relate to taxes, withholding and other types of payroll deductions. Their answer also demonstrates their ability to engage in professional development. What to look for in an answer:

• Interest in learning the latest laws and regulations
• Use of technology for staying updated on policy
• Ability to implement changes in payroll processes

A payroll manager should be able to adapt to changes and meet deadlines. An employer can use this question to evaluate a candidate's flexibility, creativity, management and problem-solving skills. An ideal payroll manager candidate would demonstrate they can work proactively to manage technology issues by having backup systems.

A candidate's answer should emphasize:

• Ability to handle setbacks and meet payroll targets
• Creativity, problem-solving, flexibility and management skills
• Viable preventative strategy to deal with IT issues

An example answer to this question could look like this: