what is a payroll administrator?
As a payroll administrator, you work in an organisation's human resources (HR) or accounts department. You make sure every employee receives accurate pay and is paid on time. Since you oversee all activities associated with payroll management systems, your job includes administrative duties. For instance, you collect all the personal information of employees and track the hours worked in every payroll cycle. After collecting the data, you organise, tabulate and use it to calculate the compensation package for the week or month based on the company's hourly rates or salary policy.
Most experts in payroll departments need a finance and accounting degree or industry certification in payroll. You also need computation skills and attentiveness to details to avoid making mistakes when calculating and allocating salaries.
As a payroll administrator, you work alongside HR professionals in various business sectors, including information technology (IT), retail, sales and marketing or construction. When working in a small organisation, your duties include other human resource functions, like hiring employees or training and development. You work alongside other HR professionals and payroll specialists in large companies. Hence, your role involves handling payroll matters only. When working for an HR consultancy, you work with various companies that outsource payroll instead of focusing on a specific company.
find your jobaverage payroll administrator salary
According to Payscale, the average salary of a payroll administrator is ₹319,616 per year. The entry-level salary in the position is ₹171,000 per year. With extensive experience, you take home over ₹699,000 per year. Your education level and years of experience greatly impact your salary. The experience level determines your skills and expertise, so you can negotiate a higher salary if you have several years of experience. Having additional qualifications also boosts your earning potential significantly.
The location also influences your earnings as a payroll administrator. Metropolitan areas attract higher salaries due to the higher cost of living and increased demand for payroll professionals. For instance, payroll administrators in Bangalore, Karnataka, earn 54.6% more than the average salary. You also earn a higher salary in New Delhi, Delhi or Chennai, Tamil Nadu. Cities with the lowest salaries include Hyderabad, Andhra Pradesh and Pune, Maharashtra.
The company size and your employer also affect your salary. Working in a large company attracts a higher salary than working in a small organisation. The complexity of the duties and unlimited resources in large organisations increases the earning prospects.
types of payroll administrators
The types of payroll administrators depend on the size of the company and the roles performed. They include:
- junior payroll administrator: as a junior payroll administrator, you perform administrative tasks in the payroll department. For instance, you verify staff information and working hours before computing their salaries. You also disburse the salaries and handle tax deductions according to the statutory requirements. You can work with other payroll specialists and report to the lead administrator.
- lead payroll administrator: as the lead payroll administrator, you supervise other payroll specialists and organise work schedules. You also audit payroll reports and deal with salaries for higher managers in the organisation. Sometimes, you formulate payroll policies for the organisation.
- external payroll administrator: when you work for an HR consultancy, you perform payroll activities for various companies. You calculate the payroll and statutory deductions for your clients without visiting their premises.
working as a payroll administrator
Becoming a payroll administrator involves processing employee salaries and other administrative duties. Discover more about a payroll administrator's typical tasks and work schedule.
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payroll administrator job description
Some of the standard duties of a payroll administrator include:
- collecting employee details: as a payroll administrator, you collect and organise the personal information of every employee. You also update the information regularly to ensure you have the current details of every worker. You keep track of terminated or retired employees and update the records accordingly.
- maintaining records of work hours: as a payroll administrator, you ensure workers log in their working hours. Since you use the information to calculate payroll, you check for discrepancies in the attendance records. You often manage time-keeping issues to avoid delays in employee payments. You also ensure employees record any overtime hours on time for payment processing.
- calculating and processing employee salaries: after logging in the work hours of every employee, you calculate the amount owed to them. The salaries should be transferred to the employees through the stipulated channels. You ensure workers receive accurate payments on the selected dates. That means you process weekly, monthly and quarterly payments for different employees in the company.
- preparing and processing statutory deductions: as a payroll administrator, you keep track of voluntary and involuntary deductions from paychecks every month. Your job is to ensure the deductions are accurate and remitted to the relevant authorities, as mistakes often lead to fines and compliance issues. Some voluntary deductions include investment premiums, insurance premiums, retirement plans and healthcare insurance, while involuntary deductions are usually taxes.
- handling payment issues and preparing payroll reports: as a payroll administrator, you file involuntary deductions reports, tax filing reports and voluntary deductions. The records are kept in company files for reference in case of discrepancies. Your job also includes handling payment issues like incorrect or delayed wages. You monitor the local laws and any changes in legislation that affect salaries.
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work environment
As a payroll administrator, you work in any industry that needs employee payroll services. Some payroll administrators work in the retail, manufacturing or construction industry. Whether in a consultancy or as an in-house payroll administrator, you work in an office environment. The most common tasks of a payroll administrator are accomplished on a computer. Fortunately, most offices provide a conducive environment for desk jobs, such as ergonomic chairs and well-lit rooms. You can also work remotely and complete all your duties with a computer and internet connection.
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who are your colleagues?
The industry you work in and your employer determine the people you interact with. You work alongside HR managers, office managers and office administrators. You also collaborate with recruiters, recruitment consultants and payroll specialists in the HR department.
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work schedule
The typical work schedule of a payroll administrator is 39 hours a week in a full-time position. Your workday runs between 8 am and 6 pm on weekdays, but you can work overtime and weekends during busier periods. Sometimes, you work on public holidays to avoid salary delays or compliance penalties for failing to remit statutory deductions on time. Part-time and freelance opportunities are also available for payroll administrators.
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job outlook
Your career prospects as a payroll administrator depend on the company you work for and your level of expertise. When starting your career, you begin as a junior payroll administrator. After gaining experience, you become a lead payroll administrator and supervise other payroll specialists. This supervisory role opens doors to managerial positions in human resources and other administrative departments. For instance, you can become an HR manager or switch to an accountant role.
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advantages of finding a payroll administrator job through randstad
Finding your payroll administrator job through Randstad provides important advantages such as:
- a wide variety of training and development opportunities
- an experienced contact person to provide help if needed
- a range of opportunities in your area
- get paid on a monthly basis
- temporary and permanent contracts
Want a permanent contract? A temporary job as a payroll administrator is often a stepping stone to an attractive permanent job. Every year, thousands of people earn a permanent contract with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too!
education and skills
To start your career as a payroll administrator, you require a business degree or HR qualifications to learn the necessary skills associated with the role. You can pursue a bachelor of commerce, bachelor of science in accounting or bachelor of arts in HR management. To qualify for these degree courses, you should take entrance exams from various institutions. Some of the entrance examinations include the Common Admission Test (CAT) and Management Aptitude Test (MAT).
Aside from gaining educational qualifications, you require extensive work experience in entry-level HR and payroll positions. Pursuing a master's degree improves your job prospects and gives you promotion opportunities.
payroll administrator skills and competencies
Some of the skills and competencies for payroll administrators include:
- problem-solving skills: as a payroll administrator, you handle multiple issues relating to compliance, taxes and miscalculations. You need exceptional problem-solving skills to deal with these issues, both logically and competently. It is also important to anticipate any potential payroll problems that could arise.
- computer and software proficiency: as a payroll administrator, you use various software to record employee data and work hours and process payroll. Proficiency in using payroll-related software and computer skills makes your work easier.
- mathematical skills: to excel in the role, you should be good with numbers. You need exceptional numerical skills to handle complex data, numbers and calculations. Maths aptitude also helps you avoid mistakes when calculating deductions and preparing tax reports.
- organisational skills: as a payroll administrator, you have many tasks to complete for every pay cycle. Organisational skills help you stay on schedule with employees' pay and meet tax deadlines to avoid penalties.
FAQs about working as a payroll administrator
Here, you will find the answers to the most frequently asked questions about the profession of a payroll administrator.
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what are the duties of payroll administrators?
As a payroll administrator, you ensure employees receive their salaries on time. Your duties include creating salary sheets, gathering employee records and issuing paychecks. You also verify work hours and pay rates to ensure everything complies with laws and regulations.
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how much do payroll administrators earn in India?
As a payroll administrator, you receive an average salary of ₹319,616 per year. The earnings fluctuate based on experience levels and educational qualifications. At an entry-level position, you receive a salary of ₹171,000 annually. With experience and advanced qualifications, you take home over ₹699,000 per year.
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what qualifications do you need to be a payroll administrator?
To work as a payroll administrator, pursue a bachelor’s degree in commerce or HR management. Aside from pursuing the degree courses, ensure you gain relevant experience by joining internships and working in entry-level jobs.
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is a payroll clerk the same as a payroll administrator?
A payroll clerk mainly performs data entry duties, like verifying the details of employee records and work hours. As a payroll administrator, you oversee the work of payroll clerks and approve employee payments or write the checks.
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what are the qualities of a payroll administrator?
Being a payroll administrator requires excellent numerical and maths skills to compute complex calculations and numbers. Aside from an aptitude for maths, you rely on your analytical skills to evaluate the data available in HR departments.
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how do I apply for a payroll administrator vacancy?
Applying for a payroll administrator job is easy: create a Randstad profile and search our job offers for vacancies in your area. Then simply send us your CV and cover letter. Need help with your application? Check out all our job search tips here!