What is a payroll administrator?

Updated: September 23, 2024

Payroll administrator definition and meaning

A payroll administrator is responsible for managing employee compensation processes, including calculating wages, handling tax withholdings, maintaining payroll records, and often serving as the company’s point of contact for payment questions or wage disputes.

What does a payroll administrator do?

Also known as payroll specialists, these professionals collaborate with HR teams, handle all aspects of payroll processing, and maintain any timekeeping systems that track employee hours (if applicable). In some organizations, they may create a payroll policy from scratch or inherit a version they need to keep up-to-date.

What are some other payroll administrator responsibilities?

• Though it depends on the company, some payroll administrators conduct a payroll audit periodically to ensure  things like overtime are being accounted for properly.

• Payroll administrators also  usually handle paperwork that full-time employees, independent contractors, or gig workers require each  January as tax season kicks-off. This includes delivering W-2s and 1099s so that individuals have the necessary paperwork to  file their tax returns.
• Depending on the expectations, some administrators may also handle vacation and sick time reporting, flexible spending accounts, and new hire reporting. In addition, most should be comfortable keeping track of numbers or willing to learn how to use payroll software, depending on how a company runs payroll.

Is a payroll administrator part of HR?

Often they are, but it depends on the company and its particular structure. Typically, the individual who serves as a payroll administrator is a member of the human resources department and handles such tasks and responsibilities as managing payroll for employees, confirming hours worked, and pay rates. This individual may also be charged with managing all payroll records for the company. In smaller organizations, however, a payroll administrator may work on their own and not be part of the HR department.

Does a payroll administrator have to be an employee?

Though many companies bring on help to handle payroll-related duties, some employers will outsource tasks to professional employer organizations (or PEOs).

Do payroll administrators need certifications?

Certifications are not a requirement to fill the role of payroll administrator. However, because a company’s payroll is subject to many government rules and regulations that payroll administrators must understand and deal with day-to-day, many of these professionals take the extra step of earning a certification (such as the fundamental payroll certification (FPC). There’s even a path to becoming a certified payroll professional (CPP). Both allow payroll administrators to be thoroughly trained on all regulations surrounding payroll compliance. The coursework toward achieving this goal also typically covers topics such as how to properly classify work, apply exemptions, and calculate gross pay.

Terms related to: Payroll administrator

• Payroll clerk
• Wages
• Employee
• Payroll policy
• Certified payroll professional (CPP)

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