A payroll administrator oversees payroll issuance and maintenance of records. Qualifications vary depending on the size of the business, with some having a high school diploma and learning on the job. The administrator is responsible for issuing correct paychecks and keeping records of past payroll information. Computer skills are required, and pay rates vary based on experience and training.
A payroll administrator is a person who oversees the issuance of payroll and the maintenance of payroll records. Payroll administrators can have varying qualifications depending on the size and nature of the business. In a small business, an accounting professional can handle all accounting needs, including payroll, vendor payments, accounts receivable processing, and other issues. In larger companies, there may be a payroll department overseen by a qualified account staffed, and in medium-sized companies, a single person acts as the payroll administrator and focuses exclusively on payroll.
Some payroll administrators have a high school diploma and learn on the job. Others have taken training and certification programs to acquire some basic business management skills. Many technical schools and community colleges offer courses that prepare people for careers in payroll administration. More qualifications may mean higher salaries initially, but they may not be necessary.
The payroll administrator collects and verifies timeliness information and is responsible for issuing correct and complete paychecks. In the process of generating paychecks, payroll administrators must perform withholdings, including taxes, voluntary contributions to benefit programs, and salary additions. These withholdings are documented on each paycheck so that the employee can verify that it is correct.
Payroll administrators also keep records of past payroll information. This will be used to generate tax documents at the end of the year, as well as to provide references in the event of a salary dispute. Employees may not immediately notice problems such as paying the wrong rate and it may be possible for an employee to dispute a refund several months old, making it critical to keep well-ordered records so that information can be quickly pulled out and verified.
This job usually requires computer skills. Most payroll administrators use computer programs to generate paychecks and may need to work with accounting software to enter payroll information. It is also common to see workplaces using computerized timing systems, and the payroll administrator should be familiar with the timing system and how it works.
Pay rates for people in these positions vary. The more experience or training someone has, the higher the base salary. Working for large companies can provide access to benefits such as health insurance and pension plans that can add value to your salary. A potential payroll administrator may want to use salary reference sites to compare salaries offered with the prevailing industry and area rate.
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