How to hire a payroll manager

How to hire a payroll manager, step by step

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

What does a payroll manager do?

Post a payroll manager job for free, promote it for a fee

Post free

1. Identify your hiring needs

   First, determine the employments status of the payroll manager you need to hire. Certain payroll manager roles might require a full-time employee, whereas others can be done by part-time workers or contractors.

   Determine employee vs contractor status

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

   Yes

   No

   A payroll manager's background is also an important factor in determining whether they'll be a good fit for the position. For example, payroll managers 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.

   This list shows salaries for various types of payroll managers.

   Type of Payroll Manager	Description	Hourly rate
   Payroll Manager	Financial clerks do administrative work for many types of organizations. They keep records, help customers, and carry out financial transactions.	$30-56
   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 Representative	A payroll representative typically works in a company's human resources department, where their role focuses on processing payrolls and assisting employees. Although the extent of their duties depends on their company or industry of employment, it often includes answering employee inquiries about salaries and benefits, preparing and processing requests, and resolving issues and concerns... Show more	$14-30

   Show more

2. Create an ideal candidate profile

   Common skills:

   • Customer Service
   • Human Resources
   • Payroll System
   • Payroll Tax
   • HRIS
   • Reconciliations
   • Payroll Operations
   • Multi-State Payroll
   • W-2
   • Process Payroll
   • Kronos
   • Payroll Data
   • Timekeeping
   • PTO

   Check all skills

   Responsibilities:

   • Manage accounting and finance operations including A/R, A/P and general accounting, etc.
   • Manage annual W2 reconciliation and distribution.
   • Manage expatriates compensation packages and taxation.
   • Coordinate department conversion of manual payroll system to KRONOS automate time and attendance system.
   • Save the company $5,500 by learning ADP and creating payroll accruals and profiles to accurately record employee PTO time profiles.
   • Process payroll utilizing ADP payroll system

   More payroll manager duties

3. Make a budget

   Including a salary range in the payroll manager job description is a good way to get more applicants. A payroll manager salary can be affected by several factors, such as the location of the job, the level of experience, education, certifications, and the employer's prestige.

   For example, the average salary for a payroll manager in Tennessee may be lower than in California, and an entry-level engineer typically earns less than a senior-level payroll manager. Additionally, a payroll manager with lots of experience in the field may command a higher salary as a result.

   Average payroll manager salary

   $86,147yearly

   $41.42 hourly rate

   ---

   Entry-level payroll manager salary

   $63,000 yearly salary

   Updated January 22, 2026

   Average payroll manager salary by state

   Rank	State	Avg. salary	Hourly rate
   1	California	$120,152	$58
   2	Washington	$94,985	$46
   3	District of Columbia	$94,961	$46
   4	Utah	$94,702	$46
   5	Massachusetts	$89,325	$43
   6	Connecticut	$87,255	$42
   7	New York	$87,101	$42
   8	Colorado	$86,731	$42
   9	Arizona	$85,321	$41
   10	Texas	$85,067	$41
   11	Illinois	$85,059	$41
   12	New Hampshire	$83,690	$40
   13	Minnesota	$83,398	$40
   14	Oregon	$83,090	$40
   15	North Carolina	$82,604	$40
   16	Virginia	$81,005	$39
   17	Georgia	$80,191	$39
   18	Michigan	$79,954	$38
   19	New Jersey	$78,454	$38
   20	Indiana	$77,537	$37

   Average payroll manager salary by company

   Company

   Rank	Company	Average salary	Hourly rate	Job openings
   1	Ep Energy	$119,333	$57.37
   2	ORIX USA	$111,784	$53.74
   3	Autodesk	$110,499	$53.12
   4	Fanatics	$107,848	$51.85	1
   5	Fortinet	$104,442	$50.21
   6	G2 Crowd	$103,249	$49.64
   7	BGC Partners	$101,150	$48.63
   8	Trailer Park	$100,888	$48.50
   9	Burlington	$100,631	$48.38
   10	Ross Stores	$99,369	$47.77	4
   11	Allbirds	$97,163	$46.71
   12	SimilarWeb	$96,161	$46.23
   13	Roku	$95,358	$45.85	1
   14	Koch Industries	$94,264	$45.32
   15	Snagajob	$94,224	$45.30
   16	Semtech	$93,567	$44.98
   17	Hireology	$93,512	$44.96
   18	Chan Zuckerberg Initiative	$92,821	$44.63
   19	Airbus	$92,675	$44.56
   20	Kiniksa Pharmaceuticals	$91,727	$44.10

4. Writing a payroll manager job description

   A good payroll manager 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 manager job description:

   Payroll manager job description example

   Be visionary
   
   At Teledyne FLIR, we have a simple but ambitious mission: to develop market-leading thermal and sensing technologies which enhance everyday life. From saving energy, to saving lives Teledyne FLIR is making a real difference in our world.Our products are used in a wide array of situations to rescue people in danger, detect criminals, conserve energy, navigate safely, provide security around the globe, and protect our environment.
   
   We are looking for individuals who thrive on making an impact and want the excitement of being on a team that wins.
   
   Job Description
   
   Job Summary:Manage the payroll team and ensure timely and accurate payroll processing, tax filing, reporting and compliance for North America operations.Primary Responsibilities:· Lead the North America payroll function with a team of 5 highly skilled payroll professionals and support our growing workforce population of approximately 2,500· Responsible for accurate and timely payrolls including compliance with local tax and labor regulations, variable pay, stock and supplemental pay runs· Coach, mentor and develop payroll team members to maximize their career velocity and contribution to Teledyne FLIR LLC· Identify and implement process improvement opportunities to drive greater accuracy and efficiency· Responsible for accurate payroll tax funding,reporting and compliance· Design and maintain internal controls in compliance with company's SOX procedures· Drive, review and audit work performed by team, including wages, tax withholdings, deductions and garnishments· Manage internal/external payroll audits· Responsible for timely and accurate payroll related balance sheet account reconciliations· Lead cross functional collaboration in ongoing operations as well as excellence projects· Supervisory Responsibilities:· Direct reporting responsibility and supervision of a team of approximately 5· Working Conditions:· 5-10% travel required
   
   Teledyne FLIR and all of our employees are committed to conducting business with the highest ethical standards. We require all employees to comply with all applicable laws, regulations, rules and regulatory orders. Our reputation for honesty, integrity and high ethics is as important to us as our reputation for making innovative sensing solutions.
   
   Teledyne FLIR is an equal opportunity employer.

   Copy this example

   

5. Post your job

   There are various strategies that you can use to find the right payroll manager for your business:

   • Consider promoting from within or recruiting from your existing workforce.
   • Ask for referrals from friends, family members, and current employees.
   • Attend job fairs at local colleges to find candidates who meet your education requirements.
   • Use social media platforms like LinkedIn, Facebook, and Twitter to reach potential job candidates.

   Post your job online:

   • Post your payroll manager job on Zippia to find and recruit payroll manager candidates who meet your exact specifications.
   • Use field-specific websites.
   • Post a job on free websites.

6. Interview candidates

   During your first interview to recruit payroll managers, 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.

   Remember to include a few questions that allow candidates to expand on their strengths in their own words. Asking about their unique skills might reveal things you'd miss otherwise. At this point, good candidates 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 manager

   Once you have selected a candidate for the payroll manager position, it is time to create an offer letter. In addition to salary, the offer letter should include details about benefits and perks that are available to the employee. Ensuring your offer is competitive is vital, as qualified candidates may be considering other job opportunities. The candidate may wish to negotiate the terms of the offer, and it is important to be open to discussion and reach a mutually beneficial agreement. After the offer has been accepted, it is a good idea to formalize the agreement with a contract.

   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.

   After that, you can create an onboarding schedule for a new payroll manager. Human Resources and the hiring manager should complete Employee Action Forms. Human Resources should also ensure that onboarding paperwork is completed, including I-9s, benefits enrollment, federal and state tax forms, etc., and that new employee files are created.

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.)

   Sign up to download full list

   Sign up

How much does it cost to hire a payroll manager?