How to hire a payroll clerk

How to hire a payroll clerk, step by step

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

What does a payroll clerk do?

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1. Identify your hiring needs

   Before you start hiring a payroll clerk, 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

   You should also consider the ideal background you'd like them a payroll clerk to have before you start to hire. For example, what industry or field would you like them to have experience in, what level of seniority or education does the job require, and how much it'll cost to hire a payroll clerk that fits the bill.

   This list shows salaries for various types of payroll clerks.

   Type of Payroll Clerk	Description	Hourly rate
   Payroll Clerk	Financial clerks do administrative work for many types of organizations. They keep records, help customers, and carry out financial transactions.	$14-26
   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
   Human Resources Clerk	A human resources clerk's role focuses on assisting in the hiring process within a company or organization. Most of the responsibilities will revolve around posting hiring notices on various platforms, handling job applications, arranging schedules and appointments for interviews, verifying requirements, and responding to calls and inquiries... Show more	$12-21

   Show more

2. Create an ideal candidate profile

   Common skills:

   • Data Entry
   • Payroll System
   • Photocopying
   • Excellent Organizational
   • Customer Service
   • ADP
   • Payroll Processing
   • Payroll Data
   • Payroll Software
   • Kronos
   • Human Resources
   • Insurance Coverage
   • Payroll Checks
   • Protects Payroll Operations

   Check all skills

   Responsibilities:

   • Manage all worker compensation and cobra benefit issues and filings.
   • Manage employee drug and background screenings, train new hires and verify I9 information.
   • Process payroll; assist in establishing new time and attendance (KRONOS) computer system; balance insurance billings.
   • View, key, post and monitor time and labor, absences and leave balances in PeopleSoft HRIS system.
   • Compile data and enter information into ADP payroll processing system.
   • Process payroll and transmit electronically to outside computer service for preparation of payroll checks and reports.

   More payroll clerk duties

3. Make a budget

   Including a salary range in your payroll clerk job description is one of the best ways to attract top talent. A payroll clerk can vary based on:

   • Location. For example, payroll clerks' average salary in south dakota is 39% less than in connecticut.
   • Seniority. Entry-level payroll clerks 44% less than senior-level payroll clerks.
   • Certifications. A payroll clerk with certifications usually earns a higher salary.
   • Company. Working for an established firm or a new start-up company can make a big difference in a payroll clerk's salary.

   Average payroll clerk salary

   $41,602yearly

   $20.00 hourly rate

   ---

   Entry-level payroll clerk salary

   $31,000 yearly salary

   Updated December 23, 2025

   Average payroll clerk salary by state

   Rank	State	Avg. salary	Hourly rate
   1	Massachusetts	$48,294	$23
   2	New York	$48,153	$23
   3	California	$48,001	$23
   4	Washington	$45,741	$22
   5	Minnesota	$45,479	$22
   6	Colorado	$45,177	$22
   7	Illinois	$43,395	$21
   8	Oregon	$43,265	$21
   9	Georgia	$40,917	$20
   10	Pennsylvania	$40,843	$20
   11	Maryland	$40,735	$20
   12	Ohio	$40,504	$19
   13	Nebraska	$40,462	$19
   14	Utah	$39,882	$19
   15	Arizona	$39,626	$19
   16	Texas	$39,338	$19
   17	Nevada	$39,073	$19
   18	Virginia	$38,089	$18
   19	Missouri	$37,649	$18
   20	Michigan	$37,590	$18

   Average payroll clerk salary by company

   Company

   Rank	Company	Average salary	Hourly rate	Job openings
   1	MDU Resources	$50,964	$24.50
   2	Manson Construction Co.	$49,150	$23.63
   3	Zachry Group	$48,943	$23.53	3
   4	APC Holdings	$47,238	$22.71
   5	Griffiths Corporation	$47,069	$22.63	2
   6	Appalachian Regional Healthcare	$46,298	$22.26	3
   7	Murray	$45,743	$21.99	5
   8	University of Michigan	$45,737	$21.99
   9	ProMedica Toledo Hospital	$45,299	$21.78
   10	Leggett & Platt	$44,497	$21.39
   11	Carnival Cruise Line	$44,435	$21.36
   12	ESPO	$44,367	$21.33
   13	Hyatt Hotels	$44,361	$21.33	8
   14	Team Elmer's	$44,341	$21.32
   15	National Vision Administrators	$43,889	$21.10
   16	E2 Consulting Engineers, Inc.	$43,816	$21.07	1
   17	ALDI USA	$43,646	$20.98
   18	Cast & Crew	$43,557	$20.94
   19	Quanta Services	$43,438	$20.88	7
   20	BrightView Landscape Development Inc	$43,034	$20.69	3

4. Writing a payroll clerk job description

   A good payroll clerk 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 clerk job description:

   Payroll clerk job description example

   Zip Code: Wauconda, IL 60084 | Location : Central Lake County Employment Type : Temporary | Workplace Type: Hybrid Schedule: Monday – Friday, 8:00 am – 5:00 pm | Salary: $17.00 to $18.00 an hour A large transportation logistics company near Lake Zurich is looking to add a Payroll Clerk to their Accounting support team. They are a well-established, family-owned corporation that has grown to over 1800 employees within 12 states. Headquarters in the NW suburbs of Chicago. Great opportunity to get your foot in the door with a well-known and respected employer. Positions offer part-time hours (up to 20 hours) with potential for additional hours to be added. Payroll Clerk’s Responsibilities

   • Assist department with reconciliation of hours worked by temporary employees with their applicable timecard
   • Review timecards for accuracy and completeness
   • Filing and other clerical duties as assigned

   Payroll Clerk’s Qualifications

   • Computer literacy: experience with ADP is a strong plus
   • Demonstrate ability to interact and communicate well within all levels of the organization.
   • Capable of handling multiple tasks at once
   • Ability to work independently with minimal supervision
   • Strong attention to detail and results oriented
   • Ability to commit to a part time schedule on a long-term basis with the flexibly to add additional hours as workload increases
   • Proficient in working with computers and Microsoft Office suites

   Company Culture & Perks

   • Opportunity to develop skills and gain more experience
   • Temporary part time hours up to 20 hours with an opportunity to add additional hours later
   • Great corporate culture with a tenured team
   • During your employment with ExecuTeam Staffing, you are eligible to enroll in our benefits program including medical (3 plans to choose from), dental, disability, critical illness, life, vision, accident and behavioral health insurance. Additional benefits including 401K, direct deposit and our referral bonus program!

   Salary: $17.00 to $18.00 an hour Put your payroll & ADP experience to use with a company who values your contribution and commitment to excellence! Why ExecuTeam ? ExecuTeam Staffing puts talented people to work at many of Chicagoland's leading employers. As one of the top staffing agencies in Chicago, we specialize in placing qualified candidates into rewarding new career opportunities in their field. We offer Direct Hire, Temp-to-hire, and Temporary positions to allow you to choose the opportunities that best fit your needs. Whether you are seeking the variety and freedom of temporary work, or new challenges in a full-time position, we can help you find the job that best matches your skills, experience, and interests. View more open positions at www.executeam.com ExecuTeam is an affiliate of The Reserves Network, a family-owned and veteran-founded company. Since 1987, we have been a trusted partner to employers and job seekers in a variety of industries and positions. As an equal opportunity employer, we value our employees and foster an environment of respect, integrity, and trust in every aspect of employment. However you identify and whatever your background, we encourage you to apply today . #CHI3

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5. Post your job

   To find the right payroll clerk 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 clerks they would recommend.
   • Recruit at local colleges. Attend job fairs at local colleges to recruit payroll clerks 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 clerk job on Zippia to find and recruit payroll clerk 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

   Recruiting payroll clerks 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. You can move on to the technical interview if a candidate is good enough for the next step.

   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 clerk

   Once you've decided on a perfect payroll clerk candidate, it's time to write an offer letter. In addition to salary, it should include benefits and perks available to the employee. Qualified candidates may be considered for other positions, so make sure your offer is competitive. Candidates may wish to negotiate. Once you've settled on the details, formalize your agreement with a contract.

   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 clerk. 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 clerk?