Students explore payroll-related practices, processes and tasks throughout the study of accounting fundamentals in the online Bachelor of Arts in Business Administration – Accounting program from Florida Institute of Technology. Many accounting professionals either perform certain payroll functions as part of their job role or focus on it entirely, as is the case with payroll administrators.
Payroll administrators oversee everything associated with paying an organization’s employees. This generally includes tracking hours worked and ensuring that employee pay is accurate and timely. Payroll administrator duties may also include calculating, deducting and processing taxes and social security withholdings, as well as other company-offered benefits.
Jobs Outlook for Payroll Administrator
According to the U.S. Bureau of Labor Statistics (BLS), the entire “accountants and auditors” occupational category will see an estimated 6% increase in employment between 2023 and 2023. This is substantially faster than the average projected growth rate of 4% for all occupations taken together. Accounting, as a whole, is an extremely stable profession, as is the subfield of payroll management and administration.
Findings from Valor Payroll Solutions also support the positive outlook for payroll professionals and continued growth in the payroll job market. New openings will become available as payroll and timekeeping clerks retire or transfer into other positions. Those who complete a bachelor’s degree in accounting and earn industry certification demonstrating their proficiency in more complex payroll issues will have an advantage in this competitive job market.
Job Duties and Job Environment
The payroll administrator is typically the first point of contact for employees in matters of time, attendance and payroll. Depending on the size of the company, payroll administration can range from cutting biweekly checks for a few employees to a complex system involving payment to thousands of employees and contractors.
A payroll administrator’s duties generally involve functions like issuing and distributing paychecks, managing direct deposits, benefits withholding, payroll deductions, garnishments and levies, and flexible spending accounts. Payroll management also concerns federal and state payroll tax deposits and returns, new hire reports, federal payroll summaries, W-2s, wage and hour law compliance, paid leave and reporting for vacation and sick time.
There are several software applications — including off-the-shelf as well as custom-built — that manage and automate components of the payroll administration process. Hence, payroll administrators must be competent with using appropriate technologies and leveraging them to optimize payroll operations, evidenced by the incorporation of management information systems coursework in Florida Tech’s accounting program.
Further, payroll administrators often provide accounting support to a company’s other finance personnel, such as the accounts receivable, accounts payable, accounting and reporting departments. Individuals in the role may also cross-train designated backup staff to administer and process time, attendance and payroll. As a payroll administrator, professionals can expect a typical 40-hour work week. Whether working in a large company or a small business, the payroll administrator position is an office job with predictable job requirements. Payroll administrators can either work in-house for a business or work for an outsourced payroll processing service that provides comprehensive payroll, accounting and tax solutions to many companies.
Payroll Administrator Salary Potential
BLS reports that the median annual wage for accountants and auditors was $79,880 in May 2023. The following is a snapshot of average salaries for specific roles in the field as of November 2024, according to ZipRecruiter:
- Payroll administrator: $57,971
- Payroll analyst: $70,803
- Payroll manager: $89,396
- Payroll director: $116,415
Payroll Administrator Education and Training
Employers require entry-level payroll professionals such as clerks to have at least a high school diploma and computer skills. Yet, in a tight job market, preference for even entry-level roles is given to those with at least a two-year degree. Ascending through the ranks to mid- to high-level payroll administration positions generally requires at least a bachelor’s degree, as with most accounting-related fields. A typical accounting bachelor’s program gives students the skills and knowledge to:
- Incorporate cost accounting fundamentals into daily practice
- Estimate the value of liabilities and equities
- Prepare and apply accounting standards to financial presentations
- Exercise critical-thinking methods to identify and solve problems
- Prepare for graduate school and future certifications
A bachelor’s degree in accounting offers numerous advantages ranging from increased earnings to improved job stability. Bachelor’s degree holders typically earn substantially more money and have lower unemployment rates as compared to adults with only a high school diploma or an associate degree, according to BLS’ Education Matters data.
Is a Payroll Administrator Job Right for You?
Payroll administrators work in an interesting, mostly predictable and sometimes extremely busy environment. For those who enjoy working with numbers and playing a key role in a company’s business operations, payroll administration may be an excellent career choice.
Plus, earning a bachelor’s in accounting can help professionals compete for the best jobs in the field, command higher salaries and foster career stability amidst a hectic business environment. Exploring one’s education and career options is key to finding a truly rewarding and satisfying career.
Learn more about Florida Tech’s online Bachelor of Arts in Business Administration – Accounting program.
