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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 | Payroll Analyst | |
| Yearly salary | $61,745 | $54,217 |
| Hourly rate | $29.69 | $26.07 |
| Growth rate | -7% | -3% |
| Number of jobs | 56,223 | 15,555 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 70% | Bachelor's Degree, 60% |
| Average age | 48 | 48 |
| Years of experience | 2 | 4 |
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.
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 analysts and payroll analysts have different pay scales, as shown below.
| Tax Analyst | Payroll Analyst | |
| Average salary | $61,745 | $54,217 |
| Salary range | Between $43,000 And $87,000 | Between $39,000 And $74,000 |
| Highest paying City | San Francisco, CA | Olympia, WA |
| Highest paying state | Maine | Washington |
| Best paying company | Meta | Varian Medical Systems |
| Best paying industry | Technology | Technology |
There are a few differences between a tax analyst and a payroll analyst in terms of educational background:
| Tax Analyst | Payroll Analyst | |
| Most common degree | Bachelor's Degree, 70% | Bachelor's Degree, 60% |
| Most common major | Accounting | Business |
| Most common college | University of Southern California | University of Pennsylvania |
Here are the differences between tax analysts' and payroll analysts' demographics:
| Tax Analyst | Payroll Analyst | |
| Average age | 48 | 48 |
| Gender ratio | Male, 42.9% Female, 57.1% | Male, 24.2% Female, 75.8% |
| Race ratio | Black 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 Percentage | 8% | 10% |