How to Become a Payroll Clerk in 5 Steps

Research what it takes to become a payroll clerk. Learn about education requirements, job duties, average wages, and job outlook to find out if this is the career for you. Schools offering Accounting degrees can also be found in these popular choices.

What Does A Payroll Clerk Do?

Payroll clerks are hired by companies to ensure that employees are compensated for their work accurately and efficiently. In addition to keeping accurate records of current employees' job activities and pay, you may also have to add all relevant data for new employees and remove data for former employees. At times, it can also be necessary to adjust pay for overtime work, days off, taxes, and more.

The chart below can give you an overview of some aspects of the job.

Education RequiredHigh school diploma or equivalent
Training RequiredOn-the-job training
Key SkillsMath, communications, computer business applications, organizational
CertificationCertification is voluntary
Job Growth (2014-2024)-3% (for all payroll and timekeeping clerks)*
Average Salary (2015)$42,130 (for all payroll and timekeeping clerks)*

Source: *U.S. Bureau of Labor Statistics

What Is a Payroll Clerk?

A payroll clerk is a specialist who compiles, processes, and records compensation information for an organization's employees. Your specific duties could include reviewing time sheets, time cards, work charts or other record-keeping media, verifying the accuracy of time data, calculating employee compensation for a given pay period, imposing deductions and adjustments for taxes, leave time, or past payroll errors, and distributing paychecks. You could also enter new employees into your employer's payroll system, update any changes to their information or status, and remove those who have retired or left the organization.

Step 1: Earn a High School Diploma

In many instances a high school diploma is sufficient for employment, according to O*Net OnLine (www.onetonline.org). Figures from O*Net OnLine show about 39% of clerks have no more than a high school diploma or GED (General Educational Development) diploma. High school courses in math, computers, and business could help you develop the knowledge and skills you'll need to adapt to the position.

Step 2: Consider Earning a Certificate

Although clerks often learn on the job, community colleges and vocational training schools offer payroll accounting clerk certificate programs that could teach you how to process payrolls and maintain a payroll system. The use of standard business productivity applications such as spreadsheets, word processors and databases is also covered. The American Payroll Association (APA) offers a certification program that could help to boost your chances of finding a job (www.americanpayroll.org).

Step 3: Obtain a Job

Company management, accounting, bookkeeping, tax preparation, and payroll services firms, local government agencies, elementary and secondary schools, employment agencies, and local governments are the primary employers of payroll clerks, according to the U.S. Bureau of Labor Statistics (www.bls.gov). About 166,700 people worked as payroll and timekeeping clerks in 2015. From 2014-2024 employment for all types of financial clerks was projected to increase by 6%; however, a 3% decline in employment was expected specifically for payroll and timekeeping clerks. The average salary for payroll and timekeeping clerks in May 2015 was $42,130.

Step 4: Consider Certification

Certification is available from the APA at two levels: the Fundamental Payroll Certification (FPC), and the Certified Payroll Professional (CPP). Both credentials require passing scores on an examination.

The FPC is the APA's entry-level credential. Eligibility is open to anyone who wants to take the FPC exam. It will test your knowledge of worker classifications, labor standards, and employment tax regulations. To earn the CPP credential you'll need either three years of work experience or two years of work experience and proof that you completed APA-approved courses. Another route to CPP certification would be to obtain FPC certification, clock 18 months of work experience, and complete CPP courses. The CPP exam will test your knowledge in six relevant areas, including core payroll concepts, legal compliance, paycheck calculation, and processing systems.

Step 5: Advance Your Career

You have at least two options for career advancement, especially if you earned a certificate. For a more diverse set of duties and responsibilities, you could consider transitioning to a position as an administrative assistant. If you enjoy working with numbers, you could consider earning a bachelor's degree in accounting and becoming an accountant. Colleges and universities might allow you to transfer some or all of the credits you earned in a certificate program to an accredited bachelor's degree program.

What Are Some Related Careers?

Billing and posting clerks calculate charges a person has on their account in order to create a bill, sending them either electronically or physically to be paid by the account holder. Procurement clerks track purchases and supplies in an organization, compiling requests for new materials, send purchase orders to suppliers, and field questions about orders. New accounts clerks interview people wishing to open a new account with financial institutions to explain the specifics of the arrangement and assist with paperwork.

To continue researching, browse degree options below for course curriculum, prerequisites and financial aid information. Or, learn more about the subject by reading the related articles below:

  • 1. Degree Options:
The schools in the listing below are not free and may include sponsored content but are popular choices among our users. Tuition and costs will vary across programs and locations. Be sure to always request tuition information before starting a program.

Popular Schools

  • Strayer University

    Strayer University responds quickly to information requests through this website.

    Popular programs at Strayer University:

    • Master
    • Bachelor Degrees
    • Associate Programs
    • Certificates

    Online Programs Available

  • Southern New Hampshire University

    Southern New Hampshire University responds quickly to information requests through this website.

    Popular programs at Southern New Hampshire University:

    Online Programs Available

  • Purdue University Global

    Purdue University Global responds quickly to information requests through this website.

    Popular programs at Purdue University Global:

    • Master
    • Bachelor Degrees
      • Bachelor of Science in Accounting

    Online Programs Available

  • Ashford University

    Ashford University responds quickly to information requests through this website.

    Popular programs at Ashford University:

    Online Programs Available

  • Colorado State University Global

    Colorado State University Global responds quickly to information requests through this website.

    Popular programs at Colorado State University Global:

    • Master
    • Bachelor Degrees
    • Certificates

    Online Programs Available

  • Regent University

    Regent University responds quickly to information requests through this website.

    Popular programs at Regent University:

    • Master
    • Bachelor Degrees

    Online Programs Available

  • Seton Hall University

    Seton Hall University responds quickly to information requests through this website.

    Popular programs at Seton Hall University:

    • Master

    Online Programs Available

  • Capella University

    Capella University responds quickly to information requests through this website.

    Popular programs at Capella University:

    • Doctoral
    • Master
    • Bachelor Degrees

    Online Programs Available

  • Trident University

    Trident University responds quickly to information requests through this website.

    Popular programs at Trident University:

    • Doctoral
    • Bachelor Degrees

    Online Programs Available

  • Florida Tech

    Florida Tech responds quickly to information requests through this website.

    Popular programs at Florida Tech :

    • Bachelor Degrees
    • Associate Programs

    Online Programs Available

  1. 1
  2. 2
  3. 3
  4. Next »