A payroll administrator, like accountants, holds a crucial role within every organization. Their job involves handling large sums of money on a daily basis to ensure that employees are paid accurately and on time. From making complex calculations to processing payments within strict deadlines, this is a challenging, demanding and fulfilling role.
To successfully fulfil their duties, there are several skills and traits that payroll administrators need to possess.
Whether you want to take your first career steps or seek to develop your current position, read on to find out the top professional skills and traits needed to be a payroll administrator.
1. Compliance knowledge
Having thorough compliance knowledge is essential for the role of a payroll administrator.
You can’t process payroll without abiding by a range of compliance procedures, including tax regulations and legal requirements.
To avoid heavy penalties, payroll admins need to be aware of the rules and regulations for payroll in their region — many of which are updated regularly. Therefore, you must also stay afloat of compliance changes.
2. Problem-solving skills
From compliance issues and tax discrepancies to miscalculations, so many problems can arise while processing payroll.
A successful payroll administrator needs to be capable of solving any problems that may arise in a competent, logical and efficient manner. You also need to be able to anticipate potential challenges that could complicate matters further.
3. Computer and software proficiency
In this highly digital age, technology is central to modern payroll processing. From preparing payroll in Excel to working with Word documents, admins need to grasp standard programs used at any office.
You’ll also need extensive working knowledge of industry-specific payroll software, such as Sage, Xero and QuickBooks. Knowing how to use such software will help you organize employee information, expedite payroll processes and perform your duties more effectively.
Bear in mind that developers regularly update these systems. As such, you’ll need to be aware of the capabilities of the platform you’re using while keeping yourself informed of the latest updates.
4. Math skills
If you’re good with numbers, then this is type of accounting role is for you!
It goes without saying, but being a payroll admin requires excellent numerical skills. Within this role, you’ll be responsible for processing complex data, numbers and calculations. Therefore, a natural aptitude for math and accounting is a must.
Having strong math skills will help you avoid mistakes and complete specific calculations, such as statutory deductions and tax reports, with greater accuracy.
5. Calmness
Staying calm under pressure reduces the likelihood of making mistakes. During any stressful situation, negativity only increases your stress levels, and when processing payroll, being stressed is far from ideal.
This can be a high-pressure role. Not only do you need to perform accurate calculations while meeting performance standards, but you’re also against the clock to get those payments processed quickly. As such, you must be able to remain cool, calm and collected under pressure.
6. Organizational skills
For every pay cycle, there’s a long checklist of responsibilities that need to be fulfilled. Part of your job will be to adhere to pay and tax deadlines while identifying any discrepancies to avoid penalties.
While you will inevitably need a good working knowledge of industry software and compliance, you also need to be highly organized to ensure all of your obligations are fulfilled adequately and on time.
7. Time management skills
Payroll administrators also require exceptional time management skills. You’ll need to work under strict deadlines to ensure wages are processed on time.
Being good at managing your time enables you to enhance your performance and achieve your goals in a more effective, focused way. This also reduces stress, increases productivity and enhances work quality.
8. Communication skills
In any professional environment, being able to communicate with others is a must. From fellow employees right through to upper management, you need excellent communication skills to thrive in this role.
That said, you need to have good verbal communication and great written communication abilities if you want to thrive in this role.
While payroll administration largely entails working with numbers, having excellent writing skills in the workplace should never be overlooked. This will allow you to communicate clearly and quickly, whether via email, a memo or the office Slack channel.
9. Customer service skills
This job involves a lot of back and forth with customers, especially if you outsource your payroll services. It’s essential to offer first-rate customer service, as this is what attracts and retains customers.
Businesses can benefit from a loyal following, positive testimonials and customer referrals, all of which will reflect positively on you and help you in progressing your career.
10. Confidentiality
A big part of this role involves dealing with personal data. Therefore, you must show discretion, especially when handling classified information.
Payroll administrators are integral to any organization, and you must respect the confidentiality of the data you are processing. You must also ensure that you’re abiding by certain rules and regulations to protect sensitive data. To achieve this, you’ll need to be familiar with your organization’s security and privacy protocols.
11. Attention to detail
As you will be working with numbers, keeping records and handling private data, having sharp attention to detail is vital for success. The tiniest error can lead to significant consequences, especially when it comes to legislation and data protection.
12. Initiative
To do your work efficiently, you must be willing to take initiative. This includes recognizing areas in your systems that could be improved and coming up with effective solutions to resolve ongoing issues.
Having the ability to take initiative will highlight your self-awareness, insight and drive to perform your duties well and advance professionally. Indeed, thinking ahead, taking action and always going the extra mile will do wonders for developing your career.
13. Administration skills
Beyond essential payroll duties, payroll administrators may need to manage office administrative tasks. As such, performing clerical responsibilities, such as coordinating meetings, reviewing records and maintaining files, will certainly come in handy.
Having good administration skills will facilitate processes and ensure a consistent, high-quality working environment, contributing to the company’s advancement and yours.
14. Business acumen
Of course, payroll administrators need to have expertise in their area to excel. However, if you’re looking to advance your career, you should be prepared to learn about other aspects, including accounting, human resources, internal audit, and so on.
The greater your knowledge of complex business operations is, the more likely you’ll be to advance to a managerial role.
15. Teamwork skills
Yes, teamwork is essential in most modern business environments, but in your profession, being capable of working with others is particularly important.
You’ll need to work closely with your own and other department members professionally and diplomatically. You may also be required to lead a team and coordinate with colleagues, clients, board members and different department heads on a range of payroll matters.
16. Eagerness to learn
Workers that largely rely on technology to carry out their tasks need to develop a passion for and commitment to learning. That’s because digital tools and software keep on evolving rapidly, and there are always new, improved technologies to familiarize yourself with.
With the raise of AI, especially, that’s now being incorporated in many emerging tools, keeping up to date with such advancements is vital if you want to have a competitive advantage in your field.
17. Data entry
Besides preparing paychecks for employees, payroll admins are also responsible for some administrative duties. Hence why data entry is an important payroll administrator skill to have!
When calculating what each employee is owed by the company, payroll admins process employee timesheets while taking into account the different pay rates for each person on the team. This information needs to be entered and processed accurately and efficiently to ensure the timely payment of staff.
18. Prioritization
Prioritization is one of the most important skills to have, regardless of your seniority or industry. For payroll administrators, who have to juggle multiple tasks (from filing and record keeping to processing payments), effective prioritization can translate into increased productivity and focus.
All in all, if you want to stand out from among your colleagues and advance your career, focus on developing this vital soft skill.
19. Analytical thinking
This role requires sharp analytical skills, because your work will always be informed by complex financial data and different types of information. Therefore, you must be able to bear different things in mind at once, understanding how it all slots in together.
The better you are at analytical reasoning, the more effectively you can carry out your work, minimizing the likelihood of errors.
20. HR skills and knowledge
Although payroll administrator jobs and human resource roles aren’t identical, their duties are complementary and often overlap. So, when striving to excel in this field, payroll managers and admins can benefit from developing their HR skills and knowledge, like how to use human resources information systems, or how to handle employee enquiries, complaints or dissatisfaction.
Indeed, interpersonal skills are often seen as a requirement on payroll admins’ job descriptions!
Final thoughts
As a payroll administrator, you should cultivate a mixture of skills to distinguish you as an asset to individual organizations and even one of the top accounting firms. Of course, through experience and lifelong learning, you can gradually develop and refine these skills, which will help you excel in this position!
What other skills do you think are important to perform well in this role? Let us know in the comments section below!
This article is a partial update of an earlier version originally published on December 19, 2016, and contains contributions by Electra Michaelidou.
