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What does a Payroll Analyst do?

Photo of Brenna Goyette
Brenna Goyette
Certified Professional Resume Writer, Career Expert

Published 3 min read

A payroll analyst is responsible for the efficient and accurate processing of an organization's payroll. This includes ensuring that employees are paid correctly and on time, calculating and withholdings taxes, and managing employee benefits. The analyst must have strong mathematical skills and knowledge of accounting principles in order to perform their job effectively. They must also be able to use various software programs to process payroll information.

Payroll Analyst job duties include:

  • Maintain payroll information by collecting, calculating, and entering data.
  • Update payroll records by entering changes in exemptions, insurance coverage, savings deductions, and job title and department/division transfers.
  • Prepare reports by compiling summaries of earnings, taxes, deductions, leave, disability, and non-taxable wages.
  • Determine payroll liabilities by calculating employee federal and state income and social security taxes and employer's social security, unemployment, and workers compensation payments.
  • Resolve payroll discrepancies by collecting and analyzing information.
  • Provide payroll information by answering questions and requests.
  • Maintain payroll guidelines by writing and updating policies and procedures.
  • Comply with federal, state, and local legal requirements by studying existing and new legislation; anticipating legislation; enforcing adherence to requirements; advising management on needed actions.
  • Secure financial information by completing database backups.

Payroll Analyst Job Requirements

A payroll analyst typically needs at least a bachelor's degree in accounting, finance, business administration, or a related field. Many employers also prefer candidates who have certification from a professional organization, such as the American Payroll Association. In addition, most payroll analysts have several years of experience working in accounting or finance.

Payroll Analyst Skills

  • Organized
  • Time management
  • Communication
  • Writing
  • Research
  • Microsoft Office
  • Google Sheets/Excel
  • QuickBooks
  • ADP Workforce Now
  • Paylocity
  • Ceridian

Related: Top Payroll Analyst Skills: Definition and Examples

How to become a Payroll Analyst

A payroll analyst is responsible for ensuring that an organization's employees are paid accurately and on time. They may also be responsible for preparing and analyzing payroll reports, as well as developing and implementing new payroll procedures.

To become a payroll analyst, you will need to have strong math skills and experience working with numbers. You should also be detail-oriented and able to spot errors. Payroll analysts typically have at least a bachelor's degree in accounting or a related field.

Related: Payroll Analyst Resume Example

Related: Payroll Analyst Interview Questions (With Example Answers)

Editorial staff

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Editor

Brenna Goyette

Expert Verified

Brenna is a certified professional resume writer, career expert, and the content manager of the ResumeCat team. She has a background in corporate recruiting and human resources and has been writing resumes for over 10 years. Brenna has experience in recruiting for tech, finance, and marketing roles and has a passion for helping people find their dream jobs. She creates expert resources to help job seekers write the best resumes and cover letters, land the job, and succeed in the workplace.

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