Payroll Specialist: Job Duties, Skills and Salary 2025

What Does a Payroll Specialist do?

A Payroll Specialist manages the employee payment process, ensuring accurate and timely payroll processing in accordance with company policies and regulations. They handle the calculation of wages, overtime, deductions, and bonuses, maintain payroll records, and ensure that all payroll transactions comply with legal requirements. This role requires detailed knowledge of payroll software, tax procedures, and employee benefits.

Payroll Specialists often serve as the point of contact for employee payroll inquiries and work closely with the HR department to coordinate changes in payroll (such as new hires, terminations, and benefits adjustments). Their precision and attention to detail are crucial in safeguarding the integrity of payroll operations and maintaining employee trust and satisfaction.

Key Duties & Responsibilities

Payroll Specialists in the Finance field handle essential tasks and contribute significantly to achieving team and organizational goals. Here are some of their primary responsibilities:

• Process payroll for employees in the organization, ensuring accuracy, timeliness, and compliance.
• Maintain payroll processing system and records by gathering, calculating, and inputting data.
• Compute employee take-home pay based on time records, benefits, and taxes.
• Answer staff questions about wages, deductions, attendance, and time records.
• Prepare reports for upper management, finance department, and auditors.
• Keep informed about changes in tax and deduction laws that apply to the payroll process.
• Handle and resolve any discrepancies in payroll, including corrections and adjustments.

How to Become a Payroll Specialist

Launching a career as a Payroll Specialist requires a specific education. We outline the essential qualifications, skills, and steps to enter this field.

Qualification

• Associate degree or higher in Accounting, Business Administration, or related field.
• Experience in payroll or a related financial role.
• Proficiency with payroll software (e.g., ADP, QuickBooks).
• Strong knowledge of federal and state regulations regarding payroll.
• Excellent mathematical and data entry skills.

Requirements & Skills

• Attention to detail and a high level of accuracy in all work.
• Good problem-solving skills and the ability to handle multiple tasks.
• Strong organizational and time management skills.
• Excellent communication abilities for dealing with diverse inquiries and explaining complex information clearly.
• Ability to maintain confidentiality regarding payroll and employee data.

Payroll Specialist Salary Guide

Wondering what Payroll Specialists earn? Explore salary ranges by experience, and career tips to maximize your earning potential.

The average salary for a Payroll Specialist in the U.S. is approximately $56,000 per year and can vary from entry-level to senior positions. Payroll Specialists may receive a wide range of benefits.

Payroll Specialist Salary Career Steps