How to hire a payroll associate

How to hire a payroll associate, step by step

Here's a step-by-step payroll associate 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 associate job description
• Step 5: Post your job
• Step 6: Interview candidates
• Step 7: Send a job offer and onboard your new payroll associate
• Step 8: Go through the hiring process checklist

What does a payroll associate do?

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1. Identify your hiring needs

   Before you start hiring a payroll associate, 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

   A payroll associate's background is also an important factor in determining whether they'll be a good fit for the position. For example, payroll associates from different industries or fields will have radically different experiences and will bring different viewpoints to the role. You also need to consider the candidate's previous level of experience to make sure they'll be comfortable with the job's level of seniority.

   Here's a comparison of payroll associate salaries for various roles:

   Type of Payroll Associate	Description	Hourly rate
   Payroll Associate	Financial clerks do administrative work for many types of organizations. They keep records, help customers, and carry out financial transactions.	$14-31
   Accounting Clerk	Accounting clerks are employees assigned to manage administrative and clerical tasks in the accounting department. Accounting clerks handle office accounting records and ensure that files are properly labeled and stored... Show more	$13-24
   Accounts Receivable Clerk	An Accounts Receivable Clerk specializes in processing payment records and bill statements of a company or organization. Among the duties include calculating total revenues and unpaid invoices, maintaining financial records and keeping a detailed and organized database, and verifying financial transactions and payment delinquencies... Show more	$13-21

   Show more

2. Create an ideal candidate profile

   Common skills:

   • Customer Service
   • Data Entry
   • ADP
   • Payroll System
   • Payroll Data
   • PeopleSoft
   • Kronos
   • Payroll Issues
   • Payroll Operations
   • Human Resources
   • Lawson
   • Manual Checks
   • Payroll Software
   • Reconciliations

   Check all skills

   Responsibilities:

   • Manage annual professional liability in PeopleSoft for faculty and fellows.
   • Used Kronos, Lawson, and company intranet on a daily basis.
   • Train and monitor time entry employees and enter data in the KRONOS system.
   • Import PTO time that are taken each pay period and update the PTO accruals and balances system.
   • Review in HRIS; hours work, wages, positions hold, and total pay per learning center.
   • Perform HRIS maintenance for new hires, transfers, separations, pays increases, and all other changes.

   More payroll associate duties

3. Make a budget

   Including a salary range in your payroll associate job description helps attract top candidates to the position. A payroll associate salary can be affected by several factors, such as geography, experience, seniority, certifications, and the prestige of the hiring company.

   For example, the average salary for a payroll associate in Montana may be lower than in New Jersey, and an entry-level payroll associate usually earns less than a senior-level payroll associate. Additionally, a payroll associate with certifications may command a higher salary, and working for a well-known company or start-up may also impact an employee's pay.

   Average payroll associate salary

   $45,232yearly

   $21.75 hourly rate

   ---

   Entry-level payroll associate salary

   $31,000 yearly salary

   Updated February 5, 2026

   Average payroll associate salary by state

   Rank	State	Avg. salary	Hourly rate
   1	California	$62,298	$30
   2	District of Columbia	$53,930	$26
   3	Washington	$53,024	$25
   4	Massachusetts	$51,883	$25
   5	Minnesota	$51,269	$25
   6	New York	$50,768	$24
   7	Wisconsin	$47,670	$23
   8	Colorado	$46,498	$22
   9	Illinois	$46,363	$22
   10	Texas	$42,945	$21
   11	Virginia	$42,313	$20
   12	Indiana	$41,444	$20
   13	Ohio	$40,476	$19
   14	Arizona	$39,173	$19
   15	Missouri	$38,061	$18
   16	Pennsylvania	$37,751	$18
   17	North Carolina	$37,564	$18
   18	Florida	$36,447	$18
   19	Montana	$34,076	$16
   20	Georgia	$33,859	$16

   Average payroll associate salary by company

   Company

   Rank	Company	Average salary	Hourly rate	Job openings
   1	Arrowstreet Capital	$83,902	$40.34
   2	Guidehouse	$65,180	$31.34
   3	Bill & Melinda Gates Foundation	$64,349	$30.94
   4	Valero Energy	$60,375	$29.03
   5	Morgan Stanley	$60,103	$28.90	1
   6	QuintilesIMS	$58,714	$28.23
   7	Pfizer	$57,297	$27.55
   8	Fortune Brands Home & Security	$56,842	$27.33
   9	Sherpa	$56,066	$26.95	1
   10	Oldcastle Infrastructure	$53,371	$25.66
   11	SC Johnson	$53,015	$25.49
   12	Pentair	$52,556	$25.27
   13	Fox News	$52,197	$25.09
   14	Fidelity National Information Solutions	$51,436	$24.73
   15	University of California-Berkeley	$50,641	$24.35
   16	SJ Louis Construction	$49,352	$23.73
   17	A&S Kinard	$47,532	$22.85
   18	Munich Reinsurance America, Inc.	$47,505	$22.84
   19	KONE	$47,455	$22.81
   20	Stericycle	$47,434	$22.80

4. Writing a payroll associate job description

   A job description for a payroll associate role includes a summary of the job's main responsibilities, required skills, and preferred background experience. Including a salary range can also go a long way in attracting more candidates to apply, and showing the first name of the hiring manager can also make applicants more comfortable. As an example, here's a payroll associate job description:

   Payroll associate job description example

   At Pentair, you will work along-side passionate problem-solvers who are committed to the future and are focused on creating a healthier world for all. Throughout our 120 global locations, our values guide us as we create innovative solutions for the world's water challenges. We bring water to life!
   
   As a Pentair employee, you would enjoy a wide array of benefit options to help keep you and your family healthy and protected, a generous 401(k) and ESPP to help you save for retirement, plus paid time off and wellness programs to encourage a healthy work/life balance.
   
   We have an opportunity for a Payroll Associate to join our Golden Valley, MN team. You will provide support and direction on routine payroll activities in accordance with company policies and established best practices. This position will process voluntary and involuntary deductions, process pay in accordance with state and federal withholding guidelines, maintain payroll records, document and update procedures, process manual adjustments to employee wage and tax records, collect/monitor overpayments and advances, process garnishments, child support, audit payroll reports on a periodic basis, maintain confidentially standards and deliver exceptional service to customers.
   You will:
   Act as the first line of contact for all employee wage and tax inquiries, and process adjustments with proper authorization, as required Ensure employee earnings, deductions, and taxes are calculated properly, including that they are in accordance with any applicable collective bargaining agreements Collect and audit timekeeping records Prepare and audit payroll reports on a periodic, quarterly, and annual basis while making corrections as needed Assist in the processing, collection, and remittance of special payments including overpayments, advances, and both voluntary and involuntary deductions Acts as main contact for all garnishment matters and processes for both internal and external customers Process and maintain new and existing withholding order documentation Calculate and prepare general ledger entries and prepare and gather payroll data for inclusion in financial statements and proxy Review and process all prorations resulting from new hires, terminations, promotions, demotions, and leave of absences Stay abreast on system upgrades and how they comply with federal and state wage and tax laws Maintain payroll records by filing supporting documentation for all edits and adjustments and participate in and test system updates and installations of patches and upgrades Complete special projects and assignments as directed by manager
   
   Key Qualifications:
   Associates Degree or equivalent experience At least 3+ years progressive payroll experience Ability to process and interpret withholding orders/garnishments Familiarity with US and/or Canadian wage and tax laws, multi-state payroll processing experience Exceptional customer service skills via phone and email, ability to be a team-player and adapt to change Strong computer skills, including proficiency in Word, Excel, and Power PointAbility to maintain strict confidentiality
   
   Preferred Qualifications:
   Experience with Workday
   FPC or CPP designation
   
   Diversity and Inclusion:
   With our expanding global presence, cross-cultural insight and competence are essential for our ongoing success. We believe that a diverse workforce contributes different perspectives and creative ideas that enable us to continue to improve every day. Race, gender, ethnicity, country of origin, age, personal style, sexual orientation, physical ability, religion, life experiences and many more factors contribute to this diversity.
   We take ongoing action to improve the diversity of our workforce by:
   Ensuring leadership involvement and ownership Attracting and retaining diverse talent at all levels Fostering a globally aware, inclusive culture Ensuring our practices are fair and non-discriminatory

   Copy this example

   

5. Post your job

   To find the right payroll associate for your business, consider trying out a few different recruiting strategies:

   • Consider internal talent. One of the most important sources of talent for any company is its existing workforce.
   • Ask for referrals. Reach out to friends, family members, and current employees and ask if they know or have worked with payroll associates they would recommend.
   • Recruit at local colleges. Attend job fairs at local colleges to recruit payroll associates who meet your education requirements.
   • Social media platforms. LinkedIn, Facebook and Twitter now have more than 3.5 billion users, and you can use social media to reach potential job candidates.

   Post your job online:

   • Post your payroll associate job on Zippia to find and recruit payroll associate candidates who meet your exact specifications.
   • Use field-specific websites such as efinancialcareers, financialjobsweb.com, careerbank, financial job bank.
   • Post a job on free websites.

6. Interview candidates

   During your first interview to recruit payroll associates, engage with candidates to learn about their interest in the role and experience in the field. During the following interview, you'll be able to go into more detail about the company, the position, and the responsibilities.

   You should also ask about candidates' unique skills and talents to see if they match the ideal candidate profile you developed earlier. Candidates good enough for the next step can complete 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 associate

   Once you've found the payroll associate 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.

   You should also follow up with applicants who don't get the job with an email letting them know that you've filled the position.

   Once that's done, you can draft an onboarding schedule for the new payroll associate. 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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How much does it cost to hire a payroll associate?