How to hire a payroll processor

How to hire a payroll processor, step by step

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

What does a payroll processor do?

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1. Identify your hiring needs

   The payroll processor hiring process starts by determining what type of worker you actually need. Certain roles might require a full-time employee, whereas part-time workers or contractors can do others.

   Determine employee vs contractor status

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

   Yes

   No

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

   Type of Payroll Processor	Description	Hourly rate
   Payroll Processor	Financial clerks do administrative work for many types of organizations. They keep records, help customers, and carry out financial transactions.	$15-27
   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
   Accounting Administrator	An accounting administrator is responsible for reviewing and analyzing account statements, managing deposits, and resolving bank discrepancies and financial disputes. Accounting administrators handle the efficient and accurate cash flow within an organization, including payroll release and filing of petty cash... Show more	$15-33

   Show more

2. Create an ideal candidate profile

   Common skills:

   • Customer Service
   • Data Entry
   • ADP
   • Payroll System
   • Kronos
   • Human Resources
   • Process Payroll
   • W-2
   • Excellent Organizational
   • Payroll Data
   • Multi-State Payroll
   • Manual Checks
   • Reconciliations
   • HRIS

   Check all skills

   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.

   More payroll processor duties

3. Make a budget

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

   • Location. For example, payroll processors' average salary in alabama is 43% less than in new jersey.
   • Seniority. Entry-level payroll processors earn 43% less than senior-level payroll processors.
   • Certifications. A payroll processor 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 processor's salary.

   Average payroll processor salary

   $44,307yearly

   $21.30 hourly rate

   ---

   Entry-level payroll processor salary

   $33,000 yearly salary

   Updated January 19, 2026

   Average payroll processor salary by state

   Rank	State	Avg. salary	Hourly rate
   1	California	$55,832	$27
   2	District of Columbia	$52,999	$25
   3	Connecticut	$52,925	$25
   4	Minnesota	$50,675	$24
   5	Virginia	$50,513	$24
   6	Illinois	$50,506	$24
   7	New York	$48,972	$24
   8	Nevada	$47,856	$23
   9	Colorado	$47,480	$23
   10	Maryland	$47,393	$23
   11	Massachusetts	$47,303	$23
   12	Wisconsin	$46,332	$22
   13	Arizona	$44,113	$21
   14	Ohio	$43,354	$21
   15	Georgia	$42,984	$21
   16	Utah	$42,241	$20
   17	Pennsylvania	$41,464	$20
   18	Texas	$41,125	$20
   19	Indiana	$40,709	$20
   20	Iowa	$40,574	$20

   Average payroll processor salary by company

   Company

   Rank	Company	Average salary	Hourly rate	Job openings
   1	Venable	$67,385	$32.40
   2	Accenture	$61,163	$29.41	22
   3	University of Southern California	$57,106	$27.45	1
   4	Johnson Controls	$53,317	$25.63	1
   5	New York State Restaurant Association	$53,068	$25.51
   6	CITGO Petroleum	$52,725	$25.35
   7	A.C.Coy	$52,349	$25.17
   8	RWJBarnabas Health	$52,232	$25.11
   9	Republic Services	$50,938	$24.49
   10	Resource Management	$49,307	$23.71
   11	University of Rochester	$49,136	$23.62	6
   12	EagleBank	$48,960	$23.54
   13	Yale New Haven Health	$48,534	$23.33
   14	University of Mississippi Medical Center	$48,434	$23.29
   15	NOV	$48,146	$23.15
   16	Wexford Health Sources	$47,698	$22.93
   17	Plastipak	$47,509	$22.84
   18	Creative Financial Staffing	$46,262	$22.24
   19	Ethan Allen Workforce Solutions	$46,143	$22.18
   20	HR Knowledge	$45,719	$21.98

4. Writing a payroll processor job description

   A payroll processor job description should include a summary of the role, required skills, and a list of responsibilities. It's also good to include a salary range and the first name of the hiring manager. To help get you started, here's an example of a payroll processor job description:

   Payroll processor job description example

   The US Payroll Process Owner is responsible for leading and driving end-to-end Payroll processes strategy, innovation and measurement for the US / Puerto Rico. The role is responsible for delivering best-in-class payroll operations by providing functional expertise and operational leadership for the US payroll team in the Tampa GBS Hub. US payroll is highly-visible, complex and multi-faceted, and includes daily transactions for Executive Level colleagues, organizational transformation/severance and input from multiple stakeholders. The US Payroll Process Owner is also accountable for advancing standardization, optimization and governance in collaboration with the Global Payroll and GBS Transformation teams. The US Process Owner will lead a team of qualified and diverse payroll professionals who will be responsible for execution of US payroll according to established SLAs / KPIs / Metrics, with focus on the specialized and complex nature of the US / Puerto Rico payroll.
   ROLE RESPONSIBILITIES
   Serve as the GBS Payroll Lead for US / Puerto Rico colleagues and primary point of contact for Regional Payroll process matters. Oversee US Payroll Operations team in the Tampa Shared Services hub, including colleague recruitment, onboarding, training and development, performance management and team quality, according to Pfizer's Purpose and Values.Oversee the team members responsible for processing specialized transactions for Executives, separated colleagues, colleagues on severance and other special circumstances.Oversee the team members responsible for time & attendance inputs from PGS sites to payroll, tax and other wage adjustments and finance/GL reporting for payroll results.Ensure appropriate Data Governance and business technology expertise for support of payroll, vendor and stakeholder projects and payroll inputs.Create a culture focused on continuous improvement, automation, compliance, vendor accountability and quality, focused on measurable outcomes and improvement Responsible for execution of global payroll optimization and standardization initiatives, contributing to overall payroll process innovation across all regions.Track and manage internal and vendor SLAs / KPIs / metrics in conjunction with Global / Regional Payroll Vendor Management team. Responsible for Regional performance and achievement of SLAs, etc.Accountable for regional compliance, controls and audits, ensuring that Global Controls and SOPs are followed and regional / country work instructions are maintained, updated as needed and followed. Accountable for all payroll-related SOX compliance, including internally and from vendors.Responsible for relationship management with key stakeholders in HR, Executive Compensation, Executive Office, HR Operations, PBG, PGS, Digital, Tax, Audit/Compliance, Finance and Treasury, identifying areas for process and service delivery improvements.Oversee reporting on and provision of payroll data for reports as required.Represent US/PR in Global Payroll Process leadership team to ensure alignment of priorities, projects and operations.Lead regional benchmarking and external / regulatory monitoring in support of global initiatives.Accountable for colleague engagement and development in support of Global Business Services objectives.
   
   BASIC QUALIFICATIONS
   Bachelor's degree in Finance, Accounting, Human Resources or related field required More than 10 years of experience in payroll, accounting or human resources, including management of a team Demonstrated experience in leading a high-performing team in a matrixed, regional / global environment; ability to work with and engage key internal and external stakeholders, engage team members and senior leadership, and manage third-party providers Strong coaching and colleague development experience Ability to resolve escalated issues and problems quickly and independently with both internal and external stakeholders, and third-party vendors Track record of results in a complex global environment with delivery of impactful continuous improvement projects, process optimization and new market/vendor payroll implementations In-depth knowledge and experience of payroll calculation and processing, regulations, compliance and audit Candidate demonstrates a breadth of diverse leadership experiences and capabilities including: the ability to influence and collaborate with peers, develop and coach others, oversee and guide the work of other colleagues to achieve meaningful outcomes and create business impact.
   
   PREFERRED QUALIFICATIONS
   Master's degree in business or related field preferred Experience with Workday, ADP, and other common outsourced payroll / time & attendance products Experience managing a team in a regional / clustered payroll service center Certified Payroll Professional, or similar professional designation preferred
   
   NON-STANDARD WORK SCHEDULE, TRAVEL OR ENVIRONMENT REQUIREMENTS
   Ability to work in a global work environment which may require conference calls and work outside of local working hours Travel, including international travel, up to 10%
   
   Additional Job Details
   Last Day to Apply: October 24, 2022
   
   Relocation assistance may be available based on business needs and/or eligibility.
   
   Pfizer requires all U.S. new hires to be fully vaccinated for COVID-19 prior to the first date of employment. As required by applicable law, Pfizer will consider requests for Reasonable Accommodations.
   
   Sunshine ActPfizer reports payments and other transfers of value to health care providers as required by federal and state transparency laws and implementing regulations. These laws and regulations require Pfizer to provide government agencies with information such as a health care provider's name, address and the type of payments or other value received, generally for public disclosure. Subject to further legal review and statutory or regulatory clarification, which Pfizer intends to pursue, reimbursement of recruiting expenses for licensed physicians may constitute a reportable transfer of value under the federal transparency law commonly known as the Sunshine Act. Therefore, if you are a licensed physician who incurs recruiting expenses as a result of interviewing with Pfizer that we pay or reimburse, your name, address and the amount of payments made currently will be reported to the government. If you have questions regarding this matter, please do not hesitate to contact your Talent Acquisition representative.
   
   EEO & Employment EligibilityPfizer is committed to equal opportunity in the terms and conditions of employment for all employees and job applicants without regard to race, color, religion, sex, sexual orientation, age, gender identity or gender expression, national origin, disability or veteran status. Pfizer also complies with all applicable national, state and local laws governing nondiscrimination in employment as well as work authorization and employment eligibility verification requirements of the Immigration and Nationality Act and IRCA. Pfizer is an E-Verify employer.
   
   People Experience
   
   #LI-PFE

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5. Post your job

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

   Your first interview with payroll processor candidates should focus on their interest in the role and background experience. As the hiring process goes on, you can learn more about how they'd fit into the company culture in later rounds of interviews.

   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 processor

   Once you've decided on a perfect payroll processor 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.

   It's also good etiquette to follow up with applicants who don't get the job by sending them an email letting them know that the position has been filled.

   After that, you can create an onboarding schedule for a new payroll processor. 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.)

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