Business & Office career

Payroll Clerk

Also called: Payroll Specialist · Timekeeping Clerk · Payroll Administrator · Payroll Assistant

What payroll clerks do, what they earn, how long training takes and how to get started, with official BLS pay data and practical, job-level detail.

Updated By the Career Education Institute Curriculum Team
What does a payroll clerk do?

Payroll and timekeeping clerks compile and record employee time and payroll data and calculate pay, deductions and taxes. The median pay is $58,260 per year (BLS, May 2025), most people train for about A few months on the job, and employment is projected to grow -15.9% from 2025–35.

Pay data: BLS OEWS, May 2025 · Outlook: BLS 2025–35 · Checked October 15, 2026

  • Median pay
    $58,260
    $28.01/hour · May 2025
  • Job growth
    -15.9%
    2025–35, a projected decline
  • Openings per year
    11,400
    Average, 2025–35
  • Typical entry education
    High school diploma or equivalent
    BLS classification
  • Time to train
    A few months on the job
    Typical program length
  • U.S. jobs
    159,600
    Employment, 2025

What payroll clerks do

Payroll clerks get everyone paid. They collect timesheets, calculate wages, overtime and deductions, process payroll, answer pay questions, handle tax filings and keep pay records. Accuracy matters because mistakes hit people’s paychecks.

A high school diploma and moderate on-the-job training are typical. BLS projects a decline as payroll software automates more work.

Typical duties

  • Collect time records
  • Calculate pay
  • Process deductions
  • Run payroll
  • Answer pay questions
  • File payroll taxes
  • Maintain records

Work environment and schedule

Payroll clerks work in HR and accounting offices, and remotely.

Schedule: Full-time hours with firm payroll deadlines.

A day in the life

  1. Collect timesheets.
  2. Fix missing punches.
  3. Calculate overtime.
  4. Process new hires.

See a full day in the life of a payroll clerk →

Payroll Clerk salary

Half of payroll clerks earned more than $58,260 and half earned less in May 2025. Pay ranged from about $39,500 for the lowest 10% to $81,350 for the top 10%.

Full payroll clerk pay scale and hourly rates →

How to become a payroll clerk

  1. Finish high school
  2. Learn bookkeeping basics
  3. Get hired in payroll
  4. Earn the FPC
  5. Advance

A high school diploma and moderate on-the-job training are typical.

Step-by-step guide to becoming a payroll clerk →

Skills and tools

Technical skills

  • Payroll processing
  • Wage and hour law
  • Payroll taxes
  • Timekeeping systems
  • Excel

People skills

  • Accuracy
  • Confidentiality
  • Reliability
  • Customer service

All payroll clerk skills and tools →

Pros and cons

Pros

  • Every employer needs payroll
  • No degree needed
  • Remote options
  • Clear processes

Cons

  • Declining employment
  • Firm deadlines
  • Upset employees when errors happen
  • Year-end crunch

Certifications and licenses

  • FPC: Fundamental Payroll Certification.
  • CPP: Certified Payroll Professional.
  • Payroll software certifications: Helpful.
  • Bookkeeping certificate: Helpful.

Career path

  1. Payroll Clerk: Entry.
  2. Payroll Specialist: Complex payroll.
  3. Payroll Supervisor: Lead team.
  4. Payroll Manager: Run payroll.

Learn the job before day one

Our Payroll Clerk training (10 hours, $89.99) covers the role, 15+ key terms, step-by-step procedures such as calculate overtime pay correctly and run a payroll preview check, safety and how to land your first job.

Compare: Payroll Clerk vs. Bookkeeper · Payroll Clerk vs. HR Specialist · Payroll Clerk vs. Billing Clerk · Payroll Clerk vs. HR Assistant

Payroll Clerk FAQ

Do payroll clerks need a degree?

No, a high school diploma is typical.

What is the FPC?

An entry payroll credential from PayrollOrg.

Is the job declining?

BLS projects decline as software automates payroll.

How much does a payroll clerk make?

The median annual wage for payroll clerks was $58,260 ($28.01 per hour) in May 2025, according to the U.S. Bureau of Labor Statistics. The lowest 10% earned less than $39,500 and the highest 10% earned more than $81,350.

How long does it take to become a payroll clerk?

Most people need about A few months on the job of training. A high school diploma and moderate on-the-job training are typical.

Do you need a degree to be a payroll clerk?

No four-year degree is typically required. BLS lists “high school diploma or equivalent” as the typical entry-level education, plus moderate-term on-the-job training.

More payroll clerk questions →

Sources

Reviewed by the Career Education Institute Curriculum Team. Pay figures are national estimates; local pay varies. See our editorial policy.

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