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Payroll Manager Job Descriptions, Average Salary, Interview Questions

What Does a Payroll Manager Do?

A payroll manager oversees the payroll department and is responsible for preparing and distributing employee payments. They maintain payroll records, calculate taxes, and balance payroll accounts. They ensure payroll procedures are followed and must comply with all federal and state laws, regulations, and payroll tax obligations. They must be able to meet crucial deadlines and ensure payroll expenses and taxes are paid correctly and on time. They manage payroll systems and must be proficient with timekeeping and payroll software, such as SAP, ADP, Kronos, and MS Office. 

Payroll managers should have excellent analytical and organizational skills. Good leadership qualities and excellent communication skills are also required. They need to be detail-oriented and good with numbers. They must be familiar with tax regulations, deductions for benefits, charitable contributions, retirement contributions, and other savings. They must keep up-to-date on any changes to these contributions as well. Payroll managers typically work closely with the human resources and accounting departments and work in almost all industries.

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National Average Salary

Payroll manager salaries vary by experience, industry, organization size, and geography. To explore salary ranges by local market, please visit our sister site zengig.com.

The average U.S. salary for a Payroll Manager is:

$79,800

Payroll Manager Job Descriptions

When it comes to recruiting a payroll manager, having the right job description can make a big difference. Here are some real world job descriptions you can use as templates for your next opening.

Candidate Certifications to Look For

  • Certified Payroll Professional (CPP). Offered by the American Payroll Association (APA), the CPP certification proves a candidate’s knowledge in the areas of core payroll concepts, compliance, paycheck calculation, payroll processes and supporting systems, payroll administration and management, audits, and accounting. Candidates must have a combination of professional experience and education to qualify to sit for the CPP exam. Certification is valid for 5 years. CPPs must earn at least 120 recertification credit hours during the 5 years to achieve recertification.
  • Certified Payroll Specialist (CPS). The CPS certification is accredited by the National Association of Certified Payroll Specialists (NACPS) and validates a candidate’s knowledge and skills in using QuickBooks, as well as their experience in payroll and accounting. Eligibility requirements include an associate’s or bachelor’s degree in accounting or equivalent, such as completing an approved certificate program. Candidates must also have 2,000 hours of bookkeeping, accounting, or payroll experience. They must agree to abide by the professional code of conduct and pass a three-part exam. In order to maintain certification, CPSs will need to complete 16 hours of continuing professional education annually.
  • Certified Payroll Manager. The Certified Payroll Manager designation enhances a candidate’s knowledge and skills in the basics of wages, paycheck fundamentals, payroll reporting requirements, and payroll operations. Candidates will learn the requirements, processes, and procedures they need to advance their careers. Training covers all aspects of payroll, such as how to properly classify workers, apply for various exemptions, calculate gross pay, and properly make deductions, properly identify, pay, and withhold taxes for employees, administer deferred compensation, sick pay, and other compensation, and much more.

Sample Interview Questions

  • How would you respond to an employee who complains about errors in their paycheck? What steps would you take to investigate?
  • What do you do if you notice a mistake in the payroll that resulted in an employee being under or overpaid?
  • How do you go about forecasting next year’s payroll expenses?
  • Are you familiar with documenting guidelines for payroll processes?
  • What do you do if you see a stark gender pay gap in a specific department within the company?
  • What payroll software are you familiar with?
  • Have you worked with HRIS systems? If so, which ones?
  • How do you check your work for accuracy before submitting payroll?
  • What’s the best method of timekeeping for employees who do shift work?
  • What is included in local taxes withholdings?
  • What is the overtime pay rate for non-exempt employees?
  • How do you ensure deadlines are met?
  • Can you describe a time when you successfully managed a stressful situation?
  • What resources do you use to learn about new labor regulations?
  • What change to a payroll process have you made to streamline it? Was it successful?
  • How would you explain financial and insurance details to employees in simple terms?
  • What are the main differences between an employee and a contractor?
  • What is FICA, and how is it calculated?
  • Can you name some examples of voluntary deductions?
  • Which benefits are taxable?

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