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Key Responsibilities and Required Skills for a Payroll Specialist

💰 $55,000 - $75,000

Human ResourcesFinanceAccounting

🎯 Role Definition

A Payroll Specialist is a cornerstone of the finance and HR departments, entrusted with the critical responsibility of managing and executing all aspects of employee compensation. This role goes far beyond simple data entry; it involves ensuring precision in every paycheck, navigating a complex web of federal, state, and local regulations, and acting as a trusted resource for employees regarding their pay. The specialist is the guardian of the company's most sensitive data and a key player in maintaining employee morale and trust through flawless, timely, and compliant payroll processing. They are detail-oriented professionals who blend accounting acumen with a deep understanding of HR policies and a commitment to customer service.

📈 Career Progression

Typical Career Path

Entry Point From:

  • HR Assistant / Coordinator
  • Accounting Clerk
  • Data Entry Specialist

Advancement To:

  • Senior Payroll Specialist / Payroll Lead
  • Payroll Manager
  • Compensation & Benefits Manager

Lateral Moves:

  • Benefits Administrator
  • HR Generalist
  • Staff Accountant

Core Responsibilities

Primary Functions

  • Manage and process payroll for all employees (salaried, hourly, commissioned) on a weekly, bi-weekly, or semi-monthly basis, ensuring complete accuracy and timeliness.
  • Collect, verify, and manage timekeeping information for all employees, resolving discrepancies with supervisors to ensure hours are recorded correctly.
  • Calculate and process various pay adjustments, including overtime, bonuses, commissions, raises, and retroactive pay.
  • Administer and process all employee deductions, both voluntary (like 401(k) and health insurance premiums) and involuntary (such as tax levies and wage garnishments).
  • Ensure meticulous compliance with all federal, state, and local payroll, wage, and hour laws, staying current with changes in legislation.
  • Prepare and remit payroll tax payments and file necessary reports with the appropriate government agencies in a timely manner.
  • Reconcile payroll prior to transmission and validate confirmed reports, ensuring that all inputs and outputs are balanced and correct.
  • Manage the administration of electronic timekeeping systems and payroll software, performing regular updates and troubleshooting issues.
    across the organization.
  • Process and issue year-end tax forms, including W-2s and 1099s, and handle any related employee inquiries or corrections.
  • Respond promptly and professionally to employee inquiries regarding paychecks, deductions, and other payroll-related matters with a high degree of confidentiality.
  • Prepare detailed payroll reports for management, including gross payroll, hours worked, vacation accrual, tax deductions, and benefit deductions.
  • Collaborate with the Human Resources department to ensure seamless processing of new hires, terminations, and changes in pay rates or status.
  • Conduct regular audits of payroll records and procedures to identify and rectify any discrepancies or potential compliance issues.
  • Maintain accurate and organized payroll records and documentation in accordance with legal requirements and company policies.
  • Assist in the setup and registration for payroll tax accounts in new states or jurisdictions as the company expands.
  • Process final paychecks for terminated employees in compliance with state-specific regulations regarding timing and final wage components.
  • Support accounting by preparing journal entries related to payroll and assisting with the reconciliation of payroll-related general ledger accounts.
  • Coordinate with external auditors and regulatory agencies, providing necessary documentation and support during payroll-related audits.
  • Facilitate the implementation and testing of new payroll systems or upgrades to existing software to enhance efficiency and accuracy.
  • Develop and maintain comprehensive payroll process documentation to ensure consistency and facilitate training for backup personnel.

Secondary Functions

  • Support ad-hoc payroll data requests from finance, HR, and leadership for budgeting, forecasting, and analytical purposes.
  • Contribute to the continuous improvement of payroll processes by recommending and helping to implement more efficient procedures and systems.
  • Collaborate with HR and Benefits teams to ensure accurate data flow between HRIS, benefits, and payroll systems.
  • Participate in cross-functional team projects that have a payroll component, providing subject matter expertise and support.

Required Skills & Competencies

Hard Skills (Technical)

  • Deep proficiency with enterprise-level payroll software (e.g., ADP Workforce Now, Paycom, Workday, Paychex, UKG).
  • Strong knowledge of federal, state, and multi-state payroll laws, including FLSA and wage and hour regulations.
  • Advanced Microsoft Excel skills, including VLOOKUPs, pivot tables, and complex formulas for reporting and reconciliation.
  • Experience with integrated HRIS and timekeeping systems and the ability to manage data flow between them.
  • Solid understanding of payroll accounting principles, including journal entries, accruals, and general ledger reconciliation.
  • Expertise in calculating and processing garnishments, levies, and other court-ordered deductions.
  • Ability to accurately prepare, file, and remit payroll tax deposits and returns at federal, state, and local levels.
  • Experience with year-end payroll processing, including W-2/W-2c generation and reconciliation.
  • Strong data entry skills with a proven track record of speed and exceptional accuracy.
  • Capability to generate, analyze, and interpret complex payroll reports for management review.

Soft Skills

  • Unwavering attention to detail and a commitment to precision and accuracy in all tasks.
  • Exceptional organizational and time-management skills to consistently meet tight deadlines.
  • High level of integrity and the ability to handle confidential and sensitive information with discretion.
  • Strong analytical and problem-solving skills to investigate and resolve payroll discrepancies.
  • Excellent written and verbal communication skills for interacting with employees, management, and external agencies.
  • A customer-service mindset with a patient and helpful approach to resolving employee questions.
  • Ability to work both independently with minimal supervision and collaboratively as part of a team.
  • Adaptability and flexibility to manage changing priorities and evolving legal requirements.

Education & Experience

Educational Background

Minimum Education:

  • High School Diploma or GED Equivalent, coupled with relevant work experience.

Preferred Education:

  • Associate's or Bachelor's degree.

Relevant Fields of Study:

  • Accounting
  • Finance
  • Business Administration
  • Human Resources

Experience Requirements

Typical Experience Range: 2-5 years of hands-on, end-to-end payroll processing experience.

Preferred: Professional certification such as the Fundamental Payroll Certification (FPC) or Certified Payroll Professional (CPP) is highly regarded.

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