How to hire a payroll administrator

How to hire a payroll administrator, step by step

Here's a step-by-step payroll administrator hiring guide:

• Step 1: Identify your hiring needs
• Step 2: Create an ideal candidate profile
• Step 3: Make a budget
• Step 4: Write a payroll administrator job description
• Step 5: Post your job
• Step 6: Interview candidates
• Step 7: Send a job offer and onboard your new payroll administrator
• Step 8: Go through the hiring process checklist

What does a payroll administrator do?

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1. Identify your hiring needs

   Before you start hiring a payroll administrator, identify what type of worker you actually need. Certain positions might call for a full-time employee, while others can be done by a part-time worker or contractor.

   Determine employee vs contractor status

   Is the person you're thinking of hiring a US citizen or green card holder?

   Yes

   No

   Hiring the perfect payroll administrator also involves considering the ideal background you'd like them to have. Depending on what industry or field they have experience in, they'll bring different skills to the job. It's also important to consider what levels of seniority and education the job requires and what kind of salary such a candidate would likely demand.

   The following list breaks down different types of payroll administrators and their corresponding salaries.

   Type of Payroll Administrator	Description	Hourly rate
   Payroll Administrator	Financial clerks do administrative work for many types of organizations. They keep records, help customers, and carry out financial transactions.	$15-30
   Timekeeper	A Timekeeper works in various industries and organizations and is typically hired as the acting liaison between payroll coordinators and employees. This is to make sure the pay distribution process runs smoothly... Show more	$14-33
   Payroll Clerk	A payroll clerk is responsible for managing the payroll process by collecting the necessary information needed to release payments. Payroll clerks' duties include verifying timesheets, calculating necessary deductions, issuing paychecks timely, managing payment discrepancies and disputes, updating employee's payment information in the database, and creating payroll reports... Show more	$14-26

   Show more

2. Create an ideal candidate profile

   Common skills:

   • Customer Service
   • Data Entry
   • Payroll System
   • Human Resources
   • Payroll Data
   • Process Payroll
   • Kronos
   • Reconciliations
   • PTO
   • HRIS
   • Multi-State Payroll
   • ADP Payroll
   • Accruals
   • Timekeeping

   Check all skills

   Responsibilities:

   • Manage year-end W2 audit/corrections and distribution.
   • Manage employee direct deposit accounts and initiate ACH reversals when necessary.
   • Manage all requisitions using PeopleSoft for the administrator and all assign departments.
   • Maintain KRONOS timekeeping system, review, sort and distribute employee upload file and multiple misc.
   • Maintain and monitor PTO balances and provide executive reports relate to vacation accruals.
   • Assist in implementing and training of MyTime and Lawson systems.

   More payroll administrator duties

3. Make a budget

   Including a salary range in your payroll administrator job description is a great way to entice the best and brightest candidates. A payroll administrator salary can vary based on several factors:

   • Location. For example, payroll administrators' average salary in south dakota is 50% less than in district of columbia.
   • Seniority. Entry-level payroll administrators earn 48% less than senior-level payroll administrators.
   • Certifications. A payroll administrator with a few certifications under their belt will likely demand a higher salary.
   • Company. Working for a prestigious company or an exciting start-up can make a huge difference in a payroll administrator's salary.

   Average payroll administrator salary

   $46,596yearly

   $22.40 hourly rate

   ---

   Entry-level payroll administrator salary

   $33,000 yearly salary

   Updated December 5, 2025

   Average payroll administrator salary by state

   Rank	State	Avg. salary	Hourly rate
   1	District of Columbia	$70,954	$34
   2	New York	$59,380	$29
   3	California	$58,928	$28
   4	Virginia	$56,208	$27
   5	Massachusetts	$55,323	$27
   6	Maryland	$54,799	$26
   7	Washington	$54,187	$26
   8	Illinois	$51,599	$25
   9	Oregon	$50,483	$24
   10	Colorado	$49,264	$24
   11	Minnesota	$49,105	$24
   12	Nevada	$48,824	$23
   13	Pennsylvania	$48,035	$23
   14	Georgia	$47,340	$23
   15	Texas	$47,260	$23
   16	Michigan	$47,151	$23
   17	Arizona	$47,115	$23
   18	North Carolina	$45,685	$22
   19	Ohio	$44,579	$21
   20	Kansas	$44,413	$21

   Average payroll administrator salary by company

   Company

   Rank	Company	Average salary	Hourly rate	Job openings
   1	Northern Trust	$72,345	$34.78	5
   2	Databricks	$70,720	$34.00
   3	FT Partners	$68,141	$32.76
   4	BlackRock	$67,523	$32.46	1
   5	Kent Daniels & Associates	$66,838	$32.13	1
   6	Vista Equity Partners	$66,520	$31.98
   7	Ngam Advisors, L.P.	$66,502	$31.97
   8	ArtCenter College of Design	$66,252	$31.85
   9	Lawrence Livermore National Laboratory	$66,000	$31.73	1
   10	Genesee & Wyoming	$64,929	$31.22
   11	Jacobs Engineering Group	$64,124	$30.83
   12	Cloudian	$63,889	$30.72
   13	City National Bank	$63,443	$30.50	6
   14	Raymond James Financial	$61,546	$29.59	6
   15	Curtiss-Wright	$61,406	$29.52	9
   16	Pinterest	$60,644	$29.16	1
   17	Deloitte	$60,190	$28.94	286
   18	Aya Healthcare	$60,129	$28.91
   19	Pacifi	$60,081	$28.89
   20	Granite Construction	$59,590	$28.65	5

4. Writing a payroll administrator job description

   A good payroll administrator job description should include a few things:

   • Summary of the role
   • List of responsibilities
   • Required skills and experience

   Including a salary range and the first name of the hiring manager is also appreciated by candidates. Here's an example of a payroll administrator job description:

   Payroll administrator job description example

   LHC Group is the preferred post-acute care partner for hospitals, physicians and families nationwide. From home health and hospice care to long-term acute care and home and community-based services, we deliver high-quality, cost-effective care that empowers patients to manage their health at home. Hospitals and health systems around the country have partnered with LHC Group to deliver patient-centered care in the home. More hospitals, physicians and families choose LHC Group, because we are united by a single, shared purpose:
   It's all about helping people.
   
   Essential Functions
   
   Administration and creation of year-end forms (W2's). Timely distribution of such forms to employees in compliance with all with Federal, State and Local regulations. Timely distribution of such forms to all required Federal, State and Local regulatory agencies, which includes preparation of electronic forms and returns in a multi-state payroll environment. The above functions are completed in conjunction with a third-party provider. Produces Federal, State and Local tax payments in a timely manner, avoiding penalty assessments. Reconciles all such payments with actual amounts withheld from employees. Research and resolve tax discrepancies. Is compliant and current with Federal, State and Local laws and regulations related to withholding taxes. Recommends changes in process when necessary due to changing laws, rules and/or regulations. Monitors the status of and communicates with employees who file exempt status Form W4 annually. Assist with additional employee inquiries regarding tax and payroll issues. Monitors and audits monthly, the tax set up in the HRIS system for employees' withholding tax ensuring that employees are accurately listed in the proper taxing jurisdiction. Responsible for the timely filing of quarterly and annual tax reports and associated payments. Other reports including SUI, MWR's, Form 941 & Form 940. Responsible for being current on laws and regulations related to these reports. Trace tax reconciling problems back to the source & decide on appropriate correcting entry when necessary. Responsible for the monthly balancing and reconciliation of employee wages. Posts wage adjustments in order to correct out-of-balancing errors within an employee's records. Review and audit of HRIS data to ensure data integrity. Such audits include local withholding tax, SUTA tax, supplemental taxes. Maintaining and ensuring audit controls as well as, developing new strategies for enhancing existing audit controls. Responsible for the social security number verification program in compliance with Social Security Administration rules and regulations. Assist in the implementation and administration of mandated payroll regulations and policies. Remains up to date and current on changing Federal, State and Local tax rules and regulations. Responsible for the documentation of department procedure manual and the department Multi-State Tax Requirements Manual. Recommend changes to workflow or departmental processes to comply with changing rules and regulations. Assist with merger, divestiture and acquisition activities. Research and registration for new taxing jurisdictions as a result of acquisition activities. Reconciling and loading wage balances for stock acquisitions made mid-year. Records non-cash wage transactions such as vested restricted stock grants, imputed income and non-taxable moving expense reimbursements. Ensures transactions are recorded in compliance with Federal, State and Local laws and regulations in order to avoid penalty assessments. Special projects as required.
   Education & Experience
   
   CPP preferred. Bachelor's Degree preferred. Four years of payroll experience directly related to payroll taxes and the duties and responsibilities specified. Must have experience in Oracle, PeopleSoft, and or Lawson; experience in time and attendance systems such as Kronos, etc. Experience in writing and updating payroll policies and procedures. Must be proficient in the use and understanding of bookkeeping and payroll practices. Must possess strong organizational, time management and written/oral communication skills. Attention to detail is a must. Must be proficient with Microsoft Office, specifically Excel.
   
   Benefits and More
   
   Competitive Pay Flexible Schedules Paid Time Off Tuition Reimbursement Medical, dental, and vision packages 401(k) Match Program Rapid Career Advancement Opportunities Internal promotions with a career plan All-encompassing Orientation and Fast Trak option for Home Care experienced clinicians Great Culture - join our family!
   
   Equal Opportunity Employer - vets, disability.
   
   Must be fully vaccinated or be willing to complete full vaccination by date of hire and proof of vaccination will be required. If permitted by state law, the company will consider requests for religious or medical exemptions.

   Copy this example

   

5. Post your job

   To find payroll administrators for your business, try out a few different recruiting strategies:

   • Consider internal talent. One of the most important talent pools for any company is its current employees.
   • Ask for referrals. Reach out to friends, family members, and your current work to ask if they know any payroll administrators they would recommend.
   • Recruit at local colleges. Attend job fairs at local colleges to recruit entry-level payroll administrators with the right educational background.
   • Social media platforms. LinkedIn, Facebook, and Twitter have more than 3.5 billion users, and they're a great place for company branding and reaching potential job candidates.

   Post your job online:

   • Post your payroll administrator job on Zippia to find and attract quality payroll administrator candidates.
   • Use niche websites such as efinancialcareers, financialjobsweb.com, careerbank, financial job bank.
   • Post a job on free websites.

6. Interview candidates

   Recruiting payroll administrators requires you to bring your A-game to the interview process. The first interview should introduce the company and the role to the candidate as much as they present their background experience and reasons for applying for the job. During later interviews, you can go into more detail about the technical details of the job and ask behavioral questions to gauge how they'd fit into your current company culture.

   It's also good to ask about candidates' unique skills and talents to see if they match your ideal candidate profile. If you think a candidate is good enough for the next step, you can move on to the technical interview.

   The right interview questions can help you assess a candidate's hard skills, behavioral intelligence, and soft skills.

7. Send a job offer and onboard your new payroll administrator

   Once you've found the payroll administrator candidate you'd like to hire, it's time to write an offer letter. This should include an explicit job offer that includes the salary and the details of any other perks. Qualified candidates might be looking at multiple positions, so your offer must be competitive if you like the candidate. Also, be prepared for a negotiation stage, as candidates may way want to tweak the details of your initial offer. Once you've settled on these details, you can draft a contract to formalize your agreement.

   It's also important to follow up with applicants who do not get the job with an email letting them know that the position is filled.

   Once that's done, you can draft an onboarding schedule for the new payroll administrator. Human Resources should complete Employee Action Forms and ensure that onboarding paperwork is completed, including I-9s, benefits enrollment, federal and state tax forms, etc. They should also ensure that new employee files are created for internal recordkeeping.

8. Go through the hiring process checklist

   • Determine employee type (full-time, part-time, contractor, etc.)
   • Submit a job requisition form to the HR department
   • Define job responsibilities and requirements
   • Establish budget and timeline
   • Determine hiring decision makers for the role
   • Write job description
   • Post job on job boards, company website, etc.
   • Promote the job internally
   • Process applications through applicant tracking system
   • Review resumes and cover letters
   • Shortlist candidates for screening
   • Hold phone/virtual interview screening with first round of candidates
   • Conduct in-person interviews with top candidates from first round
   • Score candidates based on weighted criteria (e.g., experience, education, background, cultural fit, skill set, etc.)
   • Conduct background checks on top candidates
   • Check references of top candidates
   • Consult with HR and hiring decision makers on job offer specifics
   • Extend offer to top candidate(s)
   • Receive formal job offer acceptance and signed employment contract
   • Inform other candidates that the position has been filled
   • Set and communicate onboarding schedule to new hire(s)
   • Complete new hire paperwork (i9, benefits enrollment, tax forms, etc.)

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