Payroll clerk vs payroll processor

The differences between payroll clerks and payroll processors can be seen in a few details. Each job has different responsibilities and duties. It typically takes 2-4 years to become both a payroll clerk and a payroll processor. Additionally, a payroll processor has an average salary of $44,307, which is higher than the $41,602 average annual salary of a payroll clerk.

The top three skills for a payroll clerk include data entry, payroll system and photocopying. The most important skills for a payroll processor are customer service, data entry, and ADP.

Payroll clerk vs payroll processor overview

	Payroll Clerk	Payroll Processor
Yearly salary	$41,602	$44,307
Hourly rate	$20.00	$21.30
Growth rate	-3%	-3%
Number of jobs	71,944	11,795
Job satisfaction	-	-
Most common degree	Bachelor's Degree, 34%	Bachelor's Degree, 44%
Average age	48	48
Years of experience	4	4

What does a payroll clerk do?

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. A payroll clerk must have strong analytical and organization skills, as well as a clear understanding of the organization's payroll policies, ensuring that the process follows regulatory procedures.

What does a payroll processor do?

A payroll processor is an individual who processes the payroll of employees for an organization by validating work hours and attendance of employees. Payroll processors must research for discrepancies in payroll information and documentation before processing them, as well as calculate payroll deductions. They assist payroll processing clerks and other team members with all the processes that are related to payroll. The payroll processor must also edit payroll worksheets for the data entry department as well as audit bonus payments for reporting.

Payroll clerk vs payroll processor salary

Payroll clerks and payroll processors have different pay scales, as shown below.

	Payroll Clerk	Payroll Processor
Average salary	$41,602	$44,307
Salary range	Between $31,000 And $55,000	Between $33,000 And $58,000
Highest paying City	Boston, MA	San Francisco, CA
Highest paying state	Connecticut	New Jersey
Best paying company	MDU Resources	Venable
Best paying industry	Government	Finance

Differences between payroll clerk and payroll processor education

There are a few differences between a payroll clerk and a payroll processor in terms of educational background:

	Payroll Clerk	Payroll Processor
Most common degree	Bachelor's Degree, 34%	Bachelor's Degree, 44%
Most common major	Business	Business
Most common college	University of Pennsylvania	University of Pennsylvania

Payroll clerk vs payroll processor demographics

Here are the differences between payroll clerks' and payroll processors' demographics:

	Payroll Clerk	Payroll Processor
Average age	48	48
Gender ratio	Male, 12.4% Female, 87.6%	Male, 16.1% Female, 83.9%
Race ratio	Black or African American, 10.2% Unknown, 6.1% Hispanic or Latino, 18.2% Asian, 6.0% White, 58.0% American Indian and Alaska Native, 1.5%	Black or African American, 9.6% Unknown, 6.1% Hispanic or Latino, 18.2% Asian, 6.0% White, 58.6% American Indian and Alaska Native, 1.5%
LGBT Percentage	10%	10%

Differences between payroll clerk and payroll processor duties and responsibilities

Payroll clerk example 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.

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Payroll processor example responsibilities.

Manage PTO and cafeteria benefits program.
Assist KRONOS editors as need in the KRONOS timekeeping system.
Input, verify and correct time records using the KRONOS and Lawson software.
Test new software upgrades to payroll HRIS system before implementing to payroll team.
Process, balance and facilitate the transmission of incoming and outgoing ACH files.
Input hours into PeopleSoft and balance batches for assign pay groups according to establish schedule.

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Payroll clerk vs payroll processor skills

Common payroll clerk skills

Data Entry, 19%
Payroll System, 10%
Photocopying, 7%
Excellent Organizational, 6%
Customer Service, 6%
ADP, 5%

Common payroll processor skills

Customer Service, 12%
Data Entry, 9%
ADP, 5%
Payroll System, 5%
Kronos, 5%
Human Resources, 4%

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Updated January 8, 2025

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