What Does a Payroll Administrator Do?
Introduction
A payroll administrator is responsible for managing and processing the payroll for an organization. This involves collecting and verifying employee time sheets, calculating wages, deductions, and withholdings, and ensuring employees are paid accurately and on time. Payroll administrators also maintain payroll records, handle payroll-related inquiries from employees, and ensure compliance with tax laws and regulations.
Some specific duties of a payroll administrator may include:
– Collecting and verifying employee time sheets and leave requests
– Calculating employee wages, overtime, bonuses, and deductions
– Processing payroll through the company’s payroll system
– Distributing paychecks or arranging direct deposits
– Maintaining payroll records and reports
– Handling payroll-related questions and issues from employees
– Ensuring compliance with tax laws and preparing tax forms and filings
– Assisting with audits and resolving any payroll discrepancies
– Staying up-to-date with changes in payroll laws and best practices
Payroll administrators need to be detail-oriented, organized, and have strong math and accounting skills. Proficiency with payroll software and Microsoft Office is also important. Excellent communication and customer service skills are essential for handling employee questions and issues.
Payroll Administrator Role
A search of indeed.co.uk for “payroll administrator” England returns several available positions as of April 2023. Here is an overview of some of the current openings:
Payroll Administrator – Morgan Hunt is seeking a payroll administrator for a 6 month contract position paying £120-150 per day. The role involves processing weekly and monthly payrolls for 200+ employees.
Payroll Officer – Hays Recruitment has a full-time permanent payroll officer position available paying £28,000-32,000 per year. Responsibilities include processing payroll, statutory payments, and pension contributions for 500 employees.
Part-Time Payroll Administrator – CGI Group is hiring a part-time payroll administrator to work 22.5 hours per week. The pay rate is £13.78 per hour. Duties include verifying timesheets, updating the payroll system, answering employee queries, and assisting with compliance.
Payroll & HR Administrator – Noa Recruitment is seeking a payroll and HR administrator for a full-time permanent role. The salary is £30,000-35,000 depending on experience. The position involves overseeing payroll for 100 staff and providing HR admin support.
Most of these payroll administrator require at least 2-3 years of previous payroll processing experience. Proficiency with payroll software such as Sage is often listed as a requirement. Some roles may involve additional duties in human resources, benefits, or pensions.
How Much Do Payroll Administrators Earn
According to data from Indeed’s salary aggregation, the average base salary for payroll administrator, England is approximately £29,400 per year as of April 2023. Salaries can range from around £22,000 on the low end to £40,000 or more for highly experienced payroll managers.
PayScale lists a slightly lower average salary of £26,700 for payroll administrators. However, total pay including bonuses and profit-sharing can reach over £34,000 per year according to their data.
Factors that can impact payroll administrator salaries include:
– Years of payroll processing experience
– Expertise with specific payroll software
– Additional skills or certifications
– Size of the company and number of employees paid
– Level of seniority and job title (payroll admin vs payroll manager)
– Any HR, benefits or pensions duties included in the role
It’s important to note that these salary figures are averages and estimates. Actual salaries for payroll administrators can vary depending on the specific employer, candidate’s qualifications, and details of the role. Many positions also offer additional benefits beyond base salary such as pensions, private healthcare, and bonus schemes.
Skills Needed for Payroll Administrator Jobs
Payroll administrators need a combination of hard skills in accounting and technology as well as soft skills in organization and communication. Some of the key skills and qualifications employers look for when hiring payroll administrators include:
Hard skills:
– Knowledge of payroll laws, tax regulations, and compliance requirements
– Experience processing payroll for a similar sized company
– Proficiency with payroll and accounting software (Sage, Xero, SAP, ADP)
– Expertise in Microsoft Office, especially Excel
– Strong math and accounting abilities
– Keen attention to detail and accuracy
– Time management skills to ensure payroll is processed on schedule
Soft skills:
– Excellent verbal and written communication
– Customer service mindset for handling employee inquiries
– Ability to maintain strict confidentiality with sensitive info
– Organized and able to multitask
– Problem-solving skills to address any payroll issues
– Comfortable learning new software and procedures
– Able to work independently as well as collaborate with the team
Some payroll administrator jobs may prefer or require a bachelor’s degree in accounting, finance, business or a related field. However, many employers are willing to substitute years of practical payroll processing experience for a degree.
Having a professional certification can also boost a payroll administrator’s qualifications and earning potential. The Chartered Institute of Payroll Professionals (CIPP) offers certificates and diplomas in payroll management. The Global Payroll Association also has a certified global payroll specialist program.
Career Advancement for Payroll Administrators
Payroll administrators can advance their careers by gaining experience, developing expertise in their field, and taking on additional responsibilities. With time, payroll administrators may be promoted to roles like payroll manager, payroll supervisor, or payroll analyst.
Some payroll administrators also move into related fields such as human resources, accounting, or benefits administration. Adding skills or certifications in these areas can open up additional career opportunities.
Another path for advancement is to specialize in a particular area of payroll such as global payroll management for large international companies. There are also opportunities to work as a payroll consultant or to start a payroll service business.
Continuing education and professional development are important for payroll administrators to stay current with changing laws, technology, and best practices. The CIPP and many payroll software vendors offer courses, webinars, and conferences to help payroll professionals improve their skills and knowledge.
With experience and expertise, payroll administrators can increase their earning potential and job opportunities over the course of their career. The role provides a stable career path with room for growth in a variety of industries.
Conclusion
Payroll administrator jobs are currently available with a variety of employers, salaries, and requirements. The role involves processing payroll, ensuring compliance, and handling employee inquiries. Payroll administrators typically earn salaries in the range of £22,000 to £40,000 depending on their experience and the specifics of the position.
Employers hiring payroll administrators look for skills in payroll processing, accounting, technology, communication, organization, and problem-solving. Having a professional certification from the CIPP or experience with common payroll software is also valuable.
Payroll administration provides a stable career path with opportunities for advancement into management roles, specializations, or related fields. With experience and ongoing professional development, payroll administrators can increase their earning potential and job prospects in this in-demand occupation.
FAQs – What Does a Payroll Administrator Do?
1. What are the main responsibilities of a Payroll Administrator?
A Payroll Administrator is responsible for processing payroll, ensuring accurate and timely payments to employees, maintaining payroll records, handling payroll queries, and staying up-to-date with relevant legislation and regulations.
2. What qualifications are required for a Payroll Administrator?
Most employers require a minimum of GCSE level education, with a strong focus on math and English. Relevant payroll qualifications, such as those from the Chartered Institute of Payroll Professionals (CIPP), are often preferred.
3. What is the average salary for a Payroll Administrator?
The average salary for a Payroll Administrator ranges from £25,000 to £35,000 per year, depending on experience, qualifications, and the size of the company.
4. What career progression opportunities are available for Payroll Administrators?
Payroll Administrators can progress to senior roles such as Payroll Manager or Payroll Supervisor. Some may also choose to specialize in areas like international payroll or move into related fields such as HR or accounting.
5. What skills are important for a Payroll Administrator?
Key skills for a Payroll Administrator include attention to detail, numerical accuracy, proficiency with payroll software, strong organizational and time management abilities, and excellent communication skills for dealing with employee queries and working with other departments.