Payroll Coordinator Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a payroll coordinator. You can use our job description template in this article to produce your own. We also provide you with information about the salary you can earn as a payroll coordinator.
Who is a Payroll Coordinator?
The payroll coordinator is the person who oversees the issuance of payroll and the maintenance of payroll records. Payroll coordinators may have different qualifications depending on the size and nature of the business. In a small business, a payroll coordinator may handle all accounting matters, including payroll, payments to suppliers, processing of receivables, and other matters. Larger companies may have a payroll department headed by a qualified payroll coordinator with a team of clerks, while in medium-sized companies the payroll coordinator is a person who deals exclusively with payroll.
Some payroll coordinators have a high school diploma and learn on the job. Others attend training and certification programs to learn basic business management skills. Many technical schools and community colleges offer courses that prepare people for careers in payroll administration. A higher qualification may result in a higher starting salary, but it is not necessarily necessary.
Payroll coordinators collect and verify timekeeping information and are responsible for issuing correct and complete payrolls. Payroll coordinators must make deductions, including taxes, voluntary contributions to benefit programs, and payroll deductions, as part of the payroll generation process. These deductions are documented on each payslip so that the employee can verify that they are correct.
Payroll Coordinator Job Description
Below are the payroll coordinator job description examples you can use to develop your resume or write a job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of a payroll coordinator include the following:
- Verifying the accuracy and completeness of new employee applications.
- Preparing and submitting payroll tax forms to state and federal authorities.
- Entering new employee information into the company’s computer system for payroll purposes.
- Coordinating benefits administration with insurance companies or third-party administrators (TPAs)
- Generating reports showing hours worked by employees for each pay period
- Processing new employee paperwork such as W-4 and I-9.
- Providing HR support for employee benefits and compensation
- Collecting and verifying employee and timekeeping data.
- Calculating payroll, deductions, commissions, benefits, etc.
- Updating payroll information for promotions, transfers, terminations, and new hires.
- Recording and maintaining employee records and payroll transactions.
- Preparing payroll, tax, and withholding slips.
- Answering questions and resolving payroll issues.
- Ensuring compliance with company policy, relevant industry regulations, tax, and other statutory deductions.
- Preparing payroll reports for management and audit purposes.
- Verifying the number of hours worked by employees
- Calculating wages and salaries
- Paying employees in cash, by cheque, or by transfer.
- Working with human resources to maintain employee records
- Issuing tax forms and relevant documentation and assisting employees in completing them.
- Deducting tax and insurance payments
- Resolving employee issues regarding timesheets, payrolls, and other payroll-related issues.
- Making changes to employee bank records as necessary to accurately process payments.
- Initiate direct deposits
Qualifications
The Payroll Coordinator will normally have the following qualifications:
Education
Payroll coordinators usually need at least a high school diploma or GED. Some employers prefer candidates with an associate’s or bachelor’s degree in accounting, finance, or business. Relevant courses include payroll accounting, payroll tax accounting, payroll processing, and accounting principles.
Training and experience
Payroll coordinators usually receive on-the-job training from their new employers. Training can last from a few weeks to a month, during which time the payroll coordinator learns how to use the company’s payroll software and perform their duties. Payroll coordinators working for government agencies may receive training lasting several months.
Certificates and licenses
Professional certificates confirm your qualifications for current and future employers. Payroll coordinators can obtain certificates to learn more about their day-to-day responsibilities, test their skills, and advance their careers.
Essential Skills
- Time management
Time management is the ability to plan and execute tasks promptly. For a payroll coordinator, time management skills are very important because they allow you to ensure that your company’s employees receive their paychecks on time. It also allows you to perform other tasks during the workday so that you can be an effective team member with other human resources staff.
- Payroll Processing
Payroll processing involves the ability to calculate and record employees’ pay. This involves entering data into a computer system, calculating taxes and other deductions, and generating the payroll. Payroll coordinators must be able to follow company payroll policy and ensure that employees receive accurate information about their earnings.
- Time and attendance tracking
Time and attendance tracking is an essential skill for payroll coordinators, as it allows them to accurately record employees’ working hours. This information can be used to calculate the amount an employee should receive when they are paid by their company. Time and attendance tracking also ensure that employees receive the correct amount of pay each time they are paid.
- Direct deposit
Direct deposit is a process whereby the employer can transfer funds directly into a bank account. This saves time and ensures accuracy, as employees do not have to wait for cheques to arrive in the mail, nor do they have to worry about making mistakes when writing their cheques. A payroll coordinator with these skills will help keep your business running smoothly.
- Managing employee benefits
A payroll coordinator should understand the benefits offered by an employer. This includes health insurance, pension plans, and other types of coverage. He or she must also know how these programs work so that he or she can answer employees’ questions about them. For example, the payroll coordinator can explain how the employer’s health insurance plan works if an employee asks what their monthly contribution is.
- Problem-solving
Problem-solving is the ability to identify and solve problems. As a payroll coordinator, you may have to resolve problems that arise when processing employees’ payrolls. For example, if there is an error in the system or an anomaly in an employee’s payroll, you may need to find a solution quickly. This will ensure that employees receive the correct pay on time.
- Multitasking
A payroll coordinator often has to carry out several tasks at once. For instance, these professionals may be working on a report for one department and at the same time preparing an invoice for another department. This requires them to have excellent time management skills so that they can fulfill all their responsibilities promptly. It is also important that they can move from one task to another quickly and efficiently so that no time is lost.
- Payroll
A payroll coordinator needs to understand how payroll is withheld. This is especially important if the company they work for has employees with student loans or mortgages. The payroll coordinator must know what deductions are and how they affect an employee’s salary. They also need to know how to calculate the amount that will be deducted from each cheque, which will ensure that employees receive their full salary.
- Workers’ compensation
The payroll coordinator must understand the laws and regulations regarding workers’ compensation. They must know how to file claims, what information is required for each claim, and how to process payments. A thorough knowledge of workers’ compensation will help the payroll coordinator ensure that the company complies with all applicable laws and regulations. It also allows them to accurately calculate employee benefits and ensure compliance with state and federal laws.
- Flexibility
Flexibility is the ability to adapt to changing circumstances. As a payroll coordinator, you may need to change your schedule or work hours in an emergency. You may also have to change processes and procedures due to new legislation or a change in management. Flexibility will allow you to adapt quickly and remain productive.
- Organization
Being organized is a skill that develops over time. As a payroll coordinator, you may have to keep track of many files and documents related to employee information, taxes, benefits, and other data. Your organizational skills will help you to fulfill your responsibilities and ensure that all the necessary paperwork is completed correctly. It is also important to keep your work area organized so that you can quickly find the materials you need to complete your tasks.
- Attention to detail
As a payroll coordinator, you need to ensure that all the information on each employee’s payroll is correct and complete. This requires attention to detail, as you review individual payslips and check that all deductions are correct and that employees have been paid the correct amount. You can also use your attention to detail when entering data into an automated system or when reconciling accounts.
- Payroll deductions
The payroll coordinator is responsible for calculating and distributing employees’ wages. This includes determining the amount of tax to be withheld from each employee’s salary. The payroll coordinator may use this skill to ensure that workers pay the correct amount of tax on their earnings. They may also be responsible for ensuring that employers submit accurate tax forms to the government.
- Employee induction
An effective onboarding process can help a new employee feel welcome and prepared to work. A good payroll coordinator should be able to explain company policy, introduce the employee to their colleagues and provide them with the resources they may need to complete their job.
- Unemployment Claims
Knowledge of unemployment claims is important for payroll coordinators because it allows them to understand how the government and businesses interact with each other. A payroll coordinator who understands unemployment claims can help their company save money by ensuring that employees are paid correctly. They also know what information is required from employees when they apply for unemployment benefits, which helps them process these claims quickly.
- Payroll reporting
The Payroll Coordinator must be able to create and submit accurate payroll reports for their organization. This includes generating paychecks, recording deductions and taxes, entering data into the system, and filing all necessary forms. A payroll coordinator with good reporting skills can ensure that employees receive the correct paychecks on time and that the company meets its legal obligations.
How to Become a Payroll Coordinator
Each potential employer may have a different set of requirements for someone who wants to become a payroll coordinator. However, the general requirements are often the same. For example, to apply for this position, you typically need a high school diploma or general education degree (GED), although some employers may prefer candidates with an associate’s degree. Most employers also require several years of payroll experience and a range of skills, including computer skills. Although payroll certification is not mandatory, obtaining it can improve your chances of getting the job.
The minimum education you will likely need to become a payroll coordinator is a high school diploma or an acceptable substitute. In some places, for example, the GED is an acceptable alternative for those who have not completed high school. However, some employers may give preference to those with an associate’s degree, especially if that degree is in closely related subjects, such as business or accounting.
In addition to the educational requirements to become a payroll coordinator, you will probably need to gain significant experience. In this position, you are likely to be responsible for several accounts and supervise other payroll staff. For this reason, many potential employers expect you to have at least a few years of experience in payroll. For example, you may start as an entry-level payroll employee and, after three to five years, apply for the position of payroll coordinator.
Although not necessarily required by employers, you can obtain certification if you wish to become a payroll coordinator. Some organizations offer certificates specifically for this role. To become certified, you will usually have to pass a standardized exam required by the organization. Having such a certificate can increase your chances of getting the job you want, as it will serve as proof of your knowledge of payroll issues and processes.
Where to Work as a Payroll Coordinator
Payroll coordinators work in a variety of organizations, including corporate offices, government agencies, and accounting firms. They usually work full-time during normal working hours, although they may occasionally work overtime to meet deadlines. Payroll coordinators usually work in a fast-paced environment and must be able to multitask. They also need to be detail-oriented and have strong mathematical skills. Payroll coordinators must be able to work under pressure and meet deadlines.
Payroll Coordinator Salary Scale
The average annual salary of a Payroll Coordinator in the United States and Canada is $51795 and $60,333 respectively. In the United Kingdom, the average annual salary of a Payroll Coordinator is £30,676.
