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How to hire a payroll specialist

Payroll specialist hiring summary. Here are some key points about hiring payroll specialists in the United States:

  • The median cost to hire a payroll specialist is $1,633.
  • It takes between 36 and 42 days to fill the average role in the US.
  • HR departments typically allocate 15% of their budget towards recruitment efforts.
  • Small businesses spend $1,105 per payroll specialist on training each year, while large companies spend $658.
  • It takes approximately 12 weeks for a new employee to reach full productivity levels.
  • There are a total of 115,451 payroll specialists in the US, and there are currently 6,609 job openings in this field.
  • New York, NY, has the highest demand for payroll specialists, with 63 job openings.

How to hire a payroll specialist, step by step

To hire a payroll specialist, you need to identify the specific skills and experience you want in a candidate, allocate a budget for the position, and advertise the job opening to attract potential candidates. To hire a payroll specialist, you should follow these steps:

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

What does a payroll specialist do?

It is the primary duty of a payroll specialist to process payroll and maintain an accurate record of the personnel database and ensure employees are paid on time. Payroll specialists are in charge of addressing and resolving employee complaints regarding wages. Also, they manage the company's budget and expenses and prepare reports for the relevant departments. Those with a bachelor's degree in business or accounting are preferred to get the job. Candidates with related job experience and strong knowledge of tax, wage laws, and a good understanding of standard fiscal procedures are highly qualified for the position.

Learn more about the specifics of what a payroll specialist does
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  1. Identify your hiring needs

    Before you start hiring a payroll specialist, 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?

    Hiring the perfect payroll specialist also involves considering the ideal background you'd like them to have. Depending on what industry or field they have experience in, they'll bring different skills to the job. It's also important to consider what levels of seniority and education the job requires and what kind of salary such a candidate would likely demand.

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

    Type of Payroll SpecialistDescriptionHourly rate
    Payroll SpecialistFinancial clerks do administrative work for many types of organizations. They keep records, help customers, and carry out financial transactions.$16-29
    TimekeeperA 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 ManagerA payroll manager is responsible for monitoring the payment process of all employees. Payroll managers oversee payroll records, reviewing calculable taxes and other deductions, creating a comprehensive summary of payroll details, managing payroll discrepancies, and releasing payroll checks through the organization's payment method... Show more$30-56
  2. Create an ideal candidate profile

    Common skills:
    • Customer Service
    • Data Entry
    • Payroll Data
    • Human Resources
    • ADP Workforce
    • Kronos
    • Multi-State Payroll
    • Manual Checks
    • HRIS
    • PTO
    • Work Ethic
    • Reconciliations
    • Excellent Organizational
    • Timekeeping
    Check all skills
    Responsibilities:
    • Manage a bi-weekly payroll in accordance with establish processes, including auditing timekeeping records for compliance with establish standards and policies.
    • Handle all FMLA, insurance, employee benefits and processing the payroll on bi-weekly bases through the KRONOS timekeeping system.
    • Utilize KRONOS for timekeeping and to administer security access.
    • Prepare payroll journal entry and provide guidance in general ledger reconciliations pertaining to payroll general ledger accounts and labor expense distribution
    • Establish new hires in the KRONOS timekeeping system and provide guidance and assistance to associates to communicate their responsibilities regarding payroll/timekeeping.
    • Input employee data into Lawson payroll program while using the utmost integrity to keep information confidential.
    More payroll specialist duties
  3. Make a budget

    Including a salary range in the payroll specialist job description is a good way to get more applicants. A payroll specialist 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 specialist in New Mexico may be lower than in Connecticut, and an entry-level engineer typically earns less than a senior-level payroll specialist. Additionally, a payroll specialist with lots of experience in the field may command a higher salary as a result.

    Average payroll specialist salary

    $46,462yearly

    $22.34 hourly rate

    Entry-level payroll specialist salary
    $34,000 yearly salary
    Updated December 29, 2025

    Average payroll specialist salary by state

    RankStateAvg. salaryHourly rate
    1District of Columbia$57,820$28
    2California$55,963$27
    3New York$55,123$27
    4Washington$54,115$26
    5Massachusetts$54,034$26
    6Maryland$50,878$24
    7Colorado$49,885$24
    8Illinois$49,662$24
    9Oregon$49,069$24
    10Minnesota$46,792$23
    11Pennsylvania$46,652$22
    12Virginia$46,523$22
    13Arizona$45,102$22
    14Kansas$44,942$22
    15Texas$44,437$21
    16Ohio$44,384$21
    17Maine$44,213$21
    18Nevada$43,839$21
    19Wisconsin$43,775$21
    20Nebraska$43,636$21

    Average payroll specialist salary by company

    RankCompanyAverage salaryHourly rateJob openings
    1Cambridge Associates$93,826$45.11
    2Pacific Investment Management Company LLC$76,757$36.90
    3Analysis Group$73,110$35.15
    4AEA Investors$71,342$34.30
    5Vishay$68,870$33.11
    6Hitachi Vantara$66,286$31.87
    7NW Natural$64,051$30.79
    8Lewis Brisbois Bisgaard & Smith$63,808$30.68
    9Santander Bank$63,293$30.43
    10Meridian Technology Group$62,782$30.18
    11EXL$62,525$30.06
    12Citi$62,286$29.951
    13Kent Daniels & Associates$61,964$29.791
    14Bayer$61,205$29.43
    15Baptist Health Care$60,696$29.18
    16Citrix$60,518$29.10
    17U.S. Bank$59,671$28.69
    18Architectural Design Incorporated$59,538$28.62
    19Huitt-Zollars$59,446$28.58
    20Alteryx$59,433$28.57
  4. Writing a payroll specialist job description

    A payroll specialist 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 specialist job description:

    Payroll specialist job description example

    Audit weekly payroll records for approximately 200 stores consistent with federal and state wage and hour laws. Performs payroll reconciliation, identifies, researches and resolves variances and payroll related issues ensuring corrections/adjustment are processed to correct identified errors.

    Verify eligibility for vacation, sick and holiday pay.

    Track employee paid and unpaid leave of absence (FMLA, LOA).

    Review and enter Personnel Change Forms including new/ re-hires, terminations, transfers, salary changes, position changes and address changes into the Lawson payroll system.

    Record changes affecting wages, such as: tax exemptions, insurance coverage, 401(k) contributions and loan payments.

    Respond to payroll inquiries from employees and managers and resolve issues with a high level of customer service and integrity.

    Collaborate with team members as necessary to ensure deadlines are met.

    Process direct deposit and pay card enrollment forms accurately and timely.

    Ensure all internal controls and procedures are followed.

    Responsible for safeguarding sensitive information and exercising confidentiality.

    Fulfill W-2 form copy requests.

    Assist the payroll manager with report preparation and special projects as assigned.

    Reporting Relationships

    This position reports to the Payroll Manager.

    Knowledge, Skills, and Abilities

    The ideal candidate MUST:

    Have a minimum of 3-4 years of experience working in a payroll department.

    Possess strong knowledge of payroll laws, tax withholding and gross up calculations.

    Interpret and apply the Company’s payroll and benefit polices.

    Perform duties with a high level of accuracy and detail.

    Excellent communication and organizational skills.

    Could multi-task and work under pressure to meet deadlines.

    Be dependable and be able to work outside of the standard work schedule to ensure payroll processing deadlines are met.

    Effectively work independently and within a team.

    Have excellent interpersonal skills and have a strong desire to learn and succeed!

    The ideal candidate will possess the following:

    Undergraduate degree.

    Experience with Lawson PR/HR.

    Proficiency in Microsoft Suite.

    Bilingual – Spanish

    Benefits:

    Annual compensation review program

    Paid vacation and sick leave

    Paid holidays

    401k retirement savings plan (with generous company match)

    Medical, dental, vision, life & disability and other insurance benefits...even pet care!

    Health Savings and Transit Accounts

    Merchandise discounts

    Health and financial wellness programs

    Holiday, birthday and length of service recognition

    Onsite fitness center and employee cafeteria

    Free/ secured parking

    Our company is an equal opportunity employer. All aspects of employment including the decision to hire, promote, discipline, or discharge, will be based on merit, competence, performance, and business needs. We do not discriminate on the basis of race, color, religion, marital status, age, national origin, ancestry, physical or mental disability, medical condition, pregnancy, genetic information, gender, sexual orientation, gender identity or expression, veteran status, or any other status protected under federal, state, or local law.

    Company DescriptionRainbow is fast growing and offers opportunity for development and growth. We are very successful in our market niches. We are in growth mode and are looking in for people who want longevity and to grow with the Company. Good attendance and punctuality is a must with the ability to follow instructions and work well independently and with others. The qualified candidate will have a strong work ethic, pay close attention to detail, have good organizational skills, willingness to learn and the desire to make a career.
    Rainbow employees enjoy being part of a progressive and rapidly growing organization. Our staff is hard working, loyal and dedicated. In addition, we provide many opportunities for growth and a career path. In fact, over 60% of our management team is promoted internally and we have add 60-80 new stores per year on average.
    Great benefits, including medical, dental, vision and 401(k), paid time off, weekly pay and employee discounts. Competitive pay rate based on experience.
  5. Post your job

    To find the right payroll specialist 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 specialists they would recommend.
    • Recruit at local colleges. Attend job fairs at local colleges to recruit payroll specialists 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.
    To find payroll specialist candidates, you can consider the following options:
    • Post your job opening on Zippia or other job search websites.
    • Use niche websites that focus on engineering and technology jobs, such as efinancialcareers, financialjobsweb.com, careerbank, financial job bank.
    • Post your job on free job posting websites.
  6. Interview candidates

    Recruiting payroll specialists 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 to see if they match your ideal candidate profile. If you think a candidate is good enough for the next step, you 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 specialist

    Once you've selected the best payroll specialist candidate for the job, it's time to write an offer letter. In addition to salary, this letter should include details about the benefits and perks you offer the candidate. Ensuring that your offer is competitive is essential, as qualified candidates may be considering other job opportunities. The candidate may wish to negotiate the terms of the offer, and you should be open to discussion. After you reach an agreement, the final step is formalizing the 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.

    To prepare for the new employee's start date, you can create an onboarding schedule and complete any necessary paperwork, such as employee action forms and onboarding documents like I-9 forms, benefits enrollment, and federal and state tax forms. Human Resources should also ensure that a new employee file is 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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How much does it cost to hire a payroll specialist?

Hiring a payroll specialist comes with both the one-time cost per hire and ongoing costs. The cost of recruiting payroll specialists involves promoting the job and spending time conducting interviews. Ongoing costs include employee salary, training, benefits, insurance, and equipment. It is essential to consider the cost of payroll specialist recruiting as well the ongoing costs of maintaining the new employee.

Payroll specialists earn a median yearly salary is $46,462 a year in the US. However, if you're looking to find payroll specialists for hire on a contract or per-project basis, hourly rates typically range between $16 and $29.

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