Occupation Profile for Payroll and Timekeeping Clerks
Compile and post employee time and payroll data. May compute employees' time worked, production, and commission. May compute and post wages and deductions. May prepare paychecks.
Signficant Points
- Payroll and timekeeping clerks are found in every industry.
- Workers train on the job; employers prefer high school graduates who have computer skills.
- Those who have completed a certification program will have an advantage in the job market.
Overview
| $32,400.00 | Median Annual Wage | 6,000 | Average Job Openings Per Year |
| 3.5 | Average Unemployment Percentage | 32.9 | Percentage That Completed High School |
| 214,000 | Employment Numbers in 2006 | 49.6 | Percentage That Had Some College |
| 220,000 | Employment Numbers in 2016 (est.) | 17.5 | Percentage That Went Beyond College Degree |
Sample Job Titles
Training
- These occupations usually involve using communication and organizational skills to coordinate, supervise, manage, or train others to accomplish goals. Examples include funeral directors, electricians, forest and conservation technicians, legal secretaries, interviewers, and insurance sales agents.
- Most occupations in this zone require training in vocational schools, related on-the-job experience, or an associate's degree. Some may require a bachelor's degree.
- Previous work-related skill, knowledge, or experience is required for these occupations. For example, an electrician must have completed three or four years of apprenticeship or several years of vocational training, and often must have passed a licensing exam, in order to perform the job.
- Employees in these occupations usually need one or two years of training involving both on-the-job experience and informal training with experienced workers.
Payroll and timekeeping clerks train on the job. Employers prefer high school graduates who have computer skills.
Education and training. Most employers prefer applicants with a high school diploma or GED. Payroll and timekeeping clerks train on the job, gaining skills by watching and learning from other workers. New workers receive training in payroll, timekeeping, personnel issues, workplace practices, and company policies. Some also complete training programs in high schools, business schools, or community colleges.
Other qualifications. Computer skills are very desirable. In addition, payroll and timekeeping clerks must be able to interact and communicate with individuals at all levels of the organization. Clerks need poise, tactfulness, and diplomacy, and the interpersonal skills to handle sensitive and confidential situations.
Certification and advancement. Many professional organizations for payroll and timekeeping offer classes to enhance the skills of their members. Some organizations offer certification programs; completion of a certification program can show competence and can enhance advancement opportunities. For example, the American Payroll Association offers two levels of certification, the Fundamental Payroll Certification and the Certified Payroll Professional. The first is open to all individuals who wish to demonstrate basic payroll competency. The second and more advanced credential is available to those who have been employed in the practice of payroll for at least 3 years, among other requirements. Both certifications require experience and a passing score on an exam.
Nature of Work
Payroll and timekeeping clerks perform a vital function: ensuring that employees are paid on time and that their paychecks are accurate. If inaccuracies occur, such as monetary errors or incorrect amounts of vacation time, these clerks research and correct the records. In addition, they may perform other clerical tasks. Automated timekeeping systems that allow employees to enter the number of hours they have worked directly into a computer have eliminated much of the data entry and review by timekeepers and have elevated the job of payroll clerks, allowing them to perform more complex tasks. In offices that have not automated this function, however, payroll and timekeeping clerks still perform many of the traditional job functions.
The fundamental task of timekeeping clerks is distributing and collecting timecards each pay period. These workers review employee work charts, timesheets, and timecards to ensure that information is properly recorded and that records have the signatures of authorizing officials. In companies that bill clients for the time worked by staff—law or accounting firms, for example—timekeeping clerks make sure that the hours recorded are charged to the correct job so that clients can be properly billed. These clerks also review computer reports listing timecards that cannot be processed because of errors, and they contact the employee or the employee’s supervisor to resolve the problem. In addition, timekeeping clerks are responsible for informing managers and other employees about procedural changes in payroll policies.
Payroll clerks, also called payroll technicians, screen timecards for calculating, coding, or other errors. They compute pay by subtracting allotments, including Federal and State taxes and contributions to retirement, insurance, and savings plans, from gross earnings. Increasingly, computers perform these calculations and alert payroll clerks to problems or errors in the data. In small organizations or for new employees whose records are not yet entered into a computer system, clerks may perform the necessary calculations manually. In some small offices, clerks or other employees in the accounting department process payrolls.
Payroll clerks record changes in employees’ addresses; close out files when workers retire, resign, or transfer; and advise employees on income tax withholding and other mandatory deductions. These workers also issue and record adjustments to workers’ pay because of previous errors or retroactive increases. Periodically, they prepare and mail earnings and tax-withholding statements for employees’ use in preparing income tax returns. Payroll clerks need to be aware of changes in tax and deduction laws, so that they can implement them.
In small offices, payroll and timekeeping duties are likely to be included in the duties of a general office clerk, a secretary, or an accounting clerk. However, large organizations employ specialized payroll and timekeeping clerks to perform these functions. In offices that have automated timekeeping systems, payroll clerks perform more analysis of the data, examining trends and working with computer systems. They also spend more time answering employees’ questions and processing unique data.
Work environment. Payroll and timekeeping clerks usually work in clean, pleasant, and comfortable office settings, but they also may face pressure to meet deadlines. Clerks usually work a standard 35- to 40-hour week; however, longer hours might be necessary during busy periods.
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- Procurement Clerks
- Marking Clerks
- Mail Clerks and Mail Machine Operators
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