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Tax analyst vs payroll analyst

The differences between tax analysts and payroll analysts can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 1-2 years to become a tax analyst, becoming a payroll analyst takes usually requires 2-4 years. Additionally, a tax analyst has an average salary of $61,745, which is higher than the $54,217 average annual salary of a payroll analyst.

The top three skills for a tax analyst include tax audits, reconciliations and tax compliance. The most important skills for a payroll analyst are customer service, payroll system, and payroll data.

Tax analyst vs payroll analyst overview

Tax AnalystPayroll Analyst
Yearly salary$61,745$54,217
Hourly rate$29.69$26.07
Growth rate-7%-3%
Number of jobs56,22315,555
Job satisfaction--
Most common degreeBachelor's Degree, 70%Bachelor's Degree, 60%
Average age4848
Years of experience24

What does a tax analyst do?

A tax analyst specializes in managing and filing tax forms and tax returns, all while devising strategies to reduce tax payments legally. A tax analyst may work as a member of a company or independently. Moreover, in a company setting, the responsibilities of a tax analyst revolve around coordinating with different departments to obtain all necessary documentation and financial information, maintaining accurate and extensive records of all transactions, and resolving any issues or concerns. Furthermore, it is essential to remain updated with all the tax laws, all while adhering to the policies and regulations of the company.

What does a payroll analyst do?

A payroll analyst is primarily in charge of overseeing a company's payroll processes and transactions, ensuring efficiency and timeliness. Their responsibilities typically revolve around coordinating with human resources for accurate and complete timesheets and employee data, managing calendars and schedules, calculating wages and deductions, and performing consistent audits. There are also instances when a payroll analyst must perform clerical tasks such as processing documents, prepare progress reports, and respond to employee inquiries. Furthermore, it is essential to report to managers should there be any issues and concerns.

Tax analyst vs payroll analyst salary

Tax analysts and payroll analysts have different pay scales, as shown below.

Tax AnalystPayroll Analyst
Average salary$61,745$54,217
Salary rangeBetween $43,000 And $87,000Between $39,000 And $74,000
Highest paying CitySan Francisco, CAOlympia, WA
Highest paying stateMaineWashington
Best paying companyMetaVarian Medical Systems
Best paying industryTechnologyTechnology

Differences between tax analyst and payroll analyst education

There are a few differences between a tax analyst and a payroll analyst in terms of educational background:

Tax AnalystPayroll Analyst
Most common degreeBachelor's Degree, 70%Bachelor's Degree, 60%
Most common majorAccountingBusiness
Most common collegeUniversity of Southern CaliforniaUniversity of Pennsylvania

Tax analyst vs payroll analyst demographics

Here are the differences between tax analysts' and payroll analysts' demographics:

Tax AnalystPayroll Analyst
Average age4848
Gender ratioMale, 42.9% Female, 57.1%Male, 24.2% Female, 75.8%
Race ratioBlack or African American, 13.1% Unknown, 3.4% Hispanic or Latino, 15.6% Asian, 11.1% White, 56.6% American Indian and Alaska Native, 0.3%Black or African American, 10.1% Unknown, 6.1% Hispanic or Latino, 18.6% Asian, 6.1% White, 57.6% American Indian and Alaska Native, 1.5%
LGBT Percentage8%10%

Differences between tax analyst and payroll analyst duties and responsibilities

Tax analyst example responsibilities.

  • Utilize QuickBooks to manage client data and prepare necessary financial statements.
  • Own the preparation of the consolidated/worldwide provision calculations and AJE, including account reconciliations.
  • Prepare ASC 740 tax accounting calculations.
  • Input apportionment factors into OneSource tax system.
  • Correspond with taxpayers, accountants, and CPAs.
  • Assist in federal and state return preparation using OneSource software.
  • Show more

Payroll analyst example responsibilities.

  • Manage all activities relate to base pay, overtime, PTO, garnishments and payroll tax.
  • Perform monthly accounting functions including journal entries, general ledger account reconciliations, benefit and salary accruals, and headcount reconciliations.
  • Create PowerPoint slides to train new timekeepers and managers in KRONOS.
  • Lead functional tester in support of timekeeping, payroll and labor upgrades and conversion projects.
  • Support the third-party web applications like KRONOS and custom-built time entry systems to input the time data
  • Enter new hires, terminations, and employee maintenance changes into HRIS & ADP including process employee benefit elections.
  • Show more

Tax analyst vs payroll analyst skills

Common tax analyst skills
  • Tax Audits, 6%
  • Reconciliations, 4%
  • Tax Compliance, 4%
  • Tax Payments, 4%
  • Tax Software, 4%
  • Income Tax Returns, 4%
Common payroll analyst skills
  • Customer Service, 11%
  • Payroll System, 6%
  • Payroll Data, 4%
  • Human Resources, 4%
  • Reconciliations, 4%
  • Data Entry, 3%

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