Payroll and Timekeeping Clerks Salary

The median payroll and timekeeping clerks salary in the United States is $58,260 per year ($28.01/hour). Salaries range from $39,500 at the entry level to $81,350+ for the top 10% of earners. There are 153,140 payroll and timekeeping clerks jobs nationwide. Employment is projected to decline 16.7% through 2034.

Last updated: June 2026 Β· Source: U.S. Bureau of Labor Statistics

Median Salary
$58,260
per year
Hourly Rate
$28.01
per hour
Employment
153,140
jobs in the U.S.

Salary Distribution

10th percentile
$39,500
25th percentile
$47,990
Median
$58,260
75th percentile
$69,600
90th percentile
$81,350

Job Growth (2024-2034)

-16.7%
Decline

Annual Openings

13,000
jobs/year (growth + replacements)

Education Required

High school diploma or equivalent

Training Needed

Moderate-term on-the-job training

Payroll and Timekeeping Clerks Career Guide

Interview questions, resume templates, and a career ladder written specifically for payroll and timekeeping clerkss.

Payroll and timekeeping clerks (also called payroll clerks, payroll specialists, payroll coordinators, or timekeeping analysts) run the biweekly / semi-monthly / weekly payroll cycle β€” collecting timekeeping data from UKG (Kronos), Workday, ADP, or Paylocity; calculating gross-to-net; processing multi-state tax withholding, garnishments, benefits deductions, and 401(k) contributions; and filing quarterly 941 + 940 + state / local returns. They work at Fortune 500 corporate payroll departments (Walmart, JPMorgan, Target, Disney), outsourced payroll service providers (ADP TotalSource / Comprehensive Services, Paychex), in-house payroll at hospital systems and universities, federal payroll (DFAS β€” Defense Finance and Accounting Service), and state / local government payroll. Median $58,260 across 153,140 workers; p10 $39,500 at entry roles at small businesses, p90 $81,350 at senior payroll analysts and multi-state / global payroll roles at F500. FPC β†’ CPP certification path adds 20-40% base premium.

Core Skills Hiring Managers Screen For

FLSA + wage-and-hour law fluency
Fair Labor Standards Act β€” 40 hr/week overtime at 1.5x for non-exempt; 7(k) exemption for public safety; blended-rate overtime for employees with multiple pay rates; regular rate of pay includes non-discretionary bonuses. Exempt vs non-exempt classification (salary basis + duties test). Meal / rest break laws vary by state β€” California is strictest (30-min meal by hour 5, 10-min rest per 4 hours). Getting FLSA wrong = DOL back-pay + liquidated damages + attorney's fees for the employer.
Multi-state tax withholding + reciprocity
Federal (W-4), state income tax (varies β€” 9 states have no income tax: TX, FL, WA, NV, SD, WY, TN, NH, AK), local income tax (Ohio RITA / CCA, Pennsylvania locals, NYC + Yonkers, some Michigan cities). Reciprocity agreements β€” an employee living in NJ and working in PA can file NJ-165 to withhold only NJ tax. State unemployment (SUTA) rate + wage base varies by state and by employer's experience rating.
Garnishment ordering + calculation
Federal priority ordering: (1) child support (CCPA cap 50-65% of disposable earnings depending on family status + arrears), (2) federal tax levy (IRS Form 668-W β€” leaves employee with exempt amount from tables), (3) federal student loan (15% of disposable earnings), (4) state tax levy, (5) creditor garnishment (CCPA cap 25% or 30x federal minimum wage, whichever is less). Multiple orders β€” active support goes first, then the others in date-received order up to CCPA cap.
PTO accrual + carryover math
Accrual methods: per pay period (2 wks PTO / yr = 3.08 hrs per biweekly pay period), lump sum at anniversary, front-loaded at start of year. Carryover caps + use-it-or-lose-it rules (California prohibits use-it-or-lose-it; PTO is earned wages). Payout on termination β€” some states (CA, MA, IL) require payout of accrued unused PTO on final paycheck; others don't. Sick leave (state-specific accrual rules β€” CA 1 hr per 30 worked, min 40 hrs/yr).
Benefits deductions + Section 125 cafeteria plan
Pre-tax (Section 125): medical / dental / vision premiums, HSA contributions, FSA (health + dependent care), 401(k) traditional contribution, transit + parking (up to $315/mo in 2024). Post-tax: Roth 401(k), voluntary life over $50k (imputed income), disability premiums (post-tax so benefit is tax-free), garnishments. Order of deductions matters for garnishment CCPA calculations β€” pre-tax reduces disposable earnings, post-tax doesn't.
Quarterly + annual tax filings (941, 940, state, W-2, 1099)
Form 941 β€” quarterly federal payroll tax (FICA + federal income tax withholding); due last day of month after quarter end. Form 940 β€” annual FUTA tax; due Jan 31. Form W-2 β€” annual employee wage statement; due Jan 31 to employee + SSA. Form 1099-NEC β€” non-employee compensation; due Jan 31. State β€” quarterly SUTA + state income tax; deadlines vary. Multi-state employers file in every state they have employees, even 1 remote worker.
Timekeeping systems (UKG / Kronos, Workday, ADP, Paylocity, Deltek, Paycom)
Configure work rules, meal / rest break enforcement, shift differentials (night = 10% differential, weekend = 15%), rounding rules (7-minute rule), holiday pay, PTO integration. Approvals workflow (employee β†’ manager β†’ payroll). Punch corrections + exception reports. Every timekeeping system has quirks β€” knowing UKG WFC vs UKG Dimensions vs Workday Time is a specific skill employers pay for.
401(k) contribution + true-up
Employee elective deferral (2024 limit $23,000, catch-up $7,500 for 50+). Employer match (typically 3-6% dollar-for-dollar or 50% of first 6%). Safe harbor plans. HCE (highly compensated employee) testing β€” ADP + ACP nondiscrimination tests. True-up for employees who front-load and lose match β€” many plans do an annual true-up so someone who maxes out at $23k in June still gets the full 6% match. Fund provider (Fidelity, Vanguard, Empower, Principal) integration with payroll.

How to Become a Payroll and Timekeeping Clerks

  1. 1
    Get a high school diploma or GED; associate or bachelor's degree preferred at Fortune 500 corporate payroll
    High school is enough at ADP / Paychex service centers and small-business in-house. F500 corporate payroll (Walmart Corporate, JPMorgan, Target, Disney) prefers AA or BS in Accounting, Finance, or Business. Universities + hospitals prefer some college. Federal DFAS positions require completed college coursework in Business or Accounting.
  2. 2
    Get the FPC (Fundamental Payroll Certification) β€” entry-level cert
    $430 exam (APA member) / $535 non-member. No experience requirement. Payroll fundamentals: gross-to-net, taxes, deductions, garnishments, timekeeping, reporting. This is the standard entry credential β€” adds $3-8k at hire and unlocks the Sr Payroll Specialist track.
  3. 3
    Start at an outsourced payroll service (ADP, Paychex) or small-business in-house payroll
    ADP + Paychex service centers hire hundreds of entry payroll specialists a year β€” high-volume training environment. Small-business in-house is broader learning (you do everything from time entry to tax filing) but slower promotion. Both pay $40-52k entry.
  4. 4
    Move to Sr Payroll Specialist at year 2-4 β€” multi-state or specialty (equity comp, garnishments, union payroll)
    $52-72k. Own a book of 500-3000 employees end-to-end. Multi-state payroll (10+ states) or specialty (executive equity comp, union payroll, expatriate / shadow payroll) pays 15-25% premium. Corporate + hospital + BigLaw in-house roles at this level.
  5. 5
    Advance to CPP (Certified Payroll Professional), then Payroll Manager / Analyst
    $62-95k. CPP is the senior credential β€” $430/$535 exam + 3 years experience + FPC / equivalent knowledge. Manager owns 3-15 payroll staff, runs the biweekly cycle end-to-end, owns the tax filings + audit + benefits open-enrollment coordination. Payroll Director at F500 earns $110-165k.

Career Progression

Payroll Clerk / Payroll Specialist / Payroll Coordinator (entry)
0-2 yrs$39,500-$58,260 ($19-28/hr; higher at F500 + hospital + federal DFAS with benefits)
  • β€’Enter or import time from timekeeping system (UKG / Kronos, Workday, ADP, Paylocity)
  • β€’Process new-hire and termination paperwork β€” W-4, I-9, state withholding forms, direct deposit setup
  • β€’Run the biweekly / semi-monthly / weekly payroll cycle end-to-end (small book)
  • β€’Reconcile pre-tax deductions (medical, HSA, FSA, 401k), post-tax deductions, garnishments
  • β€’Handle employee questions β€” 'why is my check different this pay period?' β€” with plain-language explanations
Next: Sr Payroll Specialist at 2-4 years with FPC in hand.
Sr Payroll Specialist / Multi-State Payroll / Garnishment Specialist
2-5 yrs$52,000-$72,000
  • β€’Own end-to-end payroll for 800-3000 employees across multiple states
  • β€’Handle complex specialty work β€” executive equity vesting, ISO / NSO / RSU tax withholding, expatriate shadow payroll, union payroll with CBA rules
  • β€’Process garnishments (multiple orders, priority ordering per CCPA), respond to withholding orders + terminations
  • β€’File quarterly 941 + state SUTA + multi-state income tax returns
  • β€’Coach entry payroll specialists on FLSA, state wage-and-hour, and complex deductions
Next: Payroll Analyst / Payroll Supervisor at 4-7 years with CPP.
Payroll Analyst / Payroll Supervisor / Payroll Auditor
4-8 yrs$65,000-$92,000
  • β€’Supervise a payroll team of 3-8 specialists; own the biweekly cycle for 5000-15,000 employees
  • β€’Own the payroll close β€” gross-to-net variance analysis, GL account reconciliation, tax deposit accuracy
  • β€’Run internal audits + support external audit (SAS 70 / SOC 1 for outsourced providers, financial audit for in-house)
  • β€’Own the annual W-2 + 1099 process, ACA Form 1095-C reporting, EEO-1 filing
  • β€’Partner with HR, Benefits, and Finance on system integrations + open-enrollment payroll changes
Next: Payroll Manager at 7-11 years.
Payroll Manager / Sr Payroll Analyst / Director Payroll
8+ yrs$85,000-$165,000+
  • β€’Own the full payroll function β€” 15,000-100,000+ employees at F500 or hospital system
  • β€’Report payroll cost, tax accuracy, and audit findings to CFO / Controller monthly
  • β€’Manage payroll technology stack β€” Workday, UKG, ADP Vantage, SAP SuccessFactors β€” including upgrades and RFP for new systems
  • β€’Own compliance for all federal, state, and local wage-and-hour, tax withholding, and garnishment laws in every state where the company operates
  • β€’Lead payroll M&A integration when the company acquires or divests businesses
Next: VP Payroll or Chief HRIS Officer at F500; Assistant Controller / Controller path at some employers.

Interview Questions & Answers

5 free questions below. Career Kit unlocks 13 total plus resume bullets for every level.

Q1. Walk me through how you'd calculate a paycheck for a non-exempt employee working 46 hours in a week at $22/hr with a $500 nondiscretionary bonus.technical
Step 1 β€” regular pay: 40 hrs Γ— $22 = $880 base. Step 2 β€” calculate regular rate of pay for overtime: nondiscretionary bonuses have to be included in regular rate. Total straight-time compensation for the week: 46 Γ— $22 = $1012 base + $500 bonus = $1512. Regular rate = $1512 / 46 hrs = $32.87/hr. Step 3 β€” overtime premium: 6 hrs Γ— ($32.87 Γ— 0.5) = $98.61 (the half-time premium; the straight-time was already in step 2). Step 4 β€” total gross: $1012 + $500 + $98.61 = $1610.61. Common mistake juniors make: they calculate OT off the base rate ($22 Γ— 1.5 Γ— 6 = $198) and skip the bonus in regular rate, which underpays the employee and creates FLSA back-pay exposure. Interviewers ask this specifically to filter for FLSA fluency.
Q2. You get a child-support order for an employee who already has a federal tax levy on file. Which one gets paid first?technical
Federal priority ordering under CCPA and 15 U.S.C. Β§ 1673: child support goes first β€” always. Even if the tax levy was received earlier in time, active child support takes priority under CCPA. The child support order's CCPA cap is 50% of disposable earnings if the employee supports another spouse / child, or 60% if they don't; add 5% if the arrearage is more than 12 weeks old. After child support is withheld up to CCPA cap, the federal tax levy is next, subject to IRS Form 668-W exempt amount (the employee is left with the exempt amount from the levy tables based on filing status + dependents). If total garnishments would exceed CCPA cap, the tax levy is prorated or held. Never touch this order without checking the actual withholding orders β€” priority is federal law, not employer discretion.
Q3. An employee's paycheck is $200 lower than last pay period and they're upset. Walk me through how you'd handle the call.situational
Never argue on the call. Pull up the employee's earnings statement side-by-side with last pay period. Common differences: (1) fewer regular hours (timekeeping issue), (2) tax withholding change (new W-4 they submitted, or state change on address update, or 401k contribution increase), (3) additional pre-tax benefit deduction (open enrollment took effect this cycle), (4) garnishment started, (5) supplemental wage β€” bonus or commission β€” taxed at supplemental rate (22% federal, higher effective withholding), (6) year-to-date FICA hit the wage base and stopped withholding (that would go UP, not down β€” so probably not this). Walk them through the specific line-item difference. Never disclose deductions to a spouse or third party β€” HIPAA + confidentiality rules apply to payroll data too. If it's a payroll error, own it and correct it in the next cycle (or off-cycle if urgent).
Q4. What's the difference between an exempt and non-exempt employee under FLSA?technical
Non-exempt employees are covered by FLSA overtime rules β€” must be paid 1.5x regular rate for hours over 40 in a workweek. Paid hourly. Time tracked. Meal / rest breaks per state law. Exempt employees are excluded from FLSA overtime IF they meet two tests: (1) salary basis test β€” paid at least $684/wk salary ($35,568/yr as of 2024, though the DOL 2024 rule raised it to $844/wk = $43,888/yr and litigation is ongoing), and (2) duties test β€” executive, administrative, professional, computer professional, or outside sales duties as defined in 29 CFR 541. Misclassification is the #1 payroll compliance failure β€” a company that classifies a $40k administrative employee as exempt owes back-pay for all overtime hours worked plus liquidated damages (double the back-pay) plus the employee's attorney fees. When in doubt, classify as non-exempt.
Q5. Why do you want to work in payroll?culture
Real answers that land: 'I like the detail and the reconciliation work β€” payroll has to balance to the penny every cycle.' 'I like the mix of accounting, HR, tax, and technology β€” it's more varied than a pure accounting role.' 'I want the FPC β†’ CPP path and a career in a compliance-heavy function that every business has to have.' 'I want to move into HRIS or Compensation later and payroll is the fastest entry point.' Avoid 'I need a stable office job' even if true β€” hiring managers screen for people who actually want to be in the profession, not just landed here.

Resume Template β€” Payroll Clerk / Payroll Specialist (0-2 yrs)

Copy these bullets into your resume as a starting point. Career Kit includes bullets for every level of the ladder.

Payroll Clerk / Payroll Specialist (0-2 yrs)
  • β–ΈRan biweekly payroll for 850-employee book across 6 states on ADP Workforce Now; 100% on-time cycle completion for 24 consecutive pay periods.
  • β–ΈFundamental Payroll Certification (FPC) earned in first 6 months; working toward CPP in FY26.
  • β–ΈProcessed 40+ new hires and 25+ terminations per pay period including W-4 setup, direct deposit, and multi-state withholding forms.
  • β–ΈReconciled pre-tax + post-tax deductions (medical, HSA, FSA, 401k, garnishments); zero unresolved variances on monthly close FY24.

What Gets You Rejected

  • βœ—FLSA misclassification β€” classifying admin employees as exempt to avoid overtime = the biggest legal exposure in payroll; a single DOL audit finds back-pay + liquidated damages + attorney fees.
  • βœ—Late tax deposits β€” 941 federal tax deposit is due next-day for large employers, semi-weekly for most others; late = 2-15% penalty + interest.
  • βœ—Wrong garnishment priority β€” paying a creditor garnishment before an active child support order violates CCPA and exposes the employer to the shortfall.
  • βœ—PII / data breaches β€” payroll files include SSN, DOB, address, direct deposit; a lost laptop or emailed spreadsheet is a federal reportable breach.
  • βœ—Sloppy PTO tracking β€” miscalculating carryover, missing the accrual, wrong final-check payout on termination = a state wage claim in CA / MA / IL.
  • βœ—Doesn't know the state β€” payroll is federal + state + local; a payroll clerk who only knows federal will miss California meal-break premiums, New York wage theft prevention notices, Pennsylvania local income tax filings, etc.

Salary Negotiation Levers

  • βœ“FPC (Fundamental Payroll Certification) adds $3-8k to base at most employers; CPP (Certified Payroll Professional) adds $8-18k on top.
  • βœ“Multi-state payroll experience β€” 10+ states or global (Canada, UK, EMEA shadow payroll) adds 15-25% base premium.
  • βœ“Specialty payroll β€” executive equity comp (ISO / NSO / RSU / ESPP tax withholding), expatriate shadow payroll, union payroll with CBA rules, hospital shift-differential payroll β€” all pay 10-20% above generalist payroll.
  • βœ“F500 corporate payroll (Walmart, JPMorgan, Target, Disney, Amazon, Apple) pays 15-25% above outsourced service providers (ADP / Paychex) + full benefits + RSU eligibility at senior levels.
  • βœ“Federal payroll β€” DFAS (Defense Finance and Accounting Service) β€” GS-7 to GS-13 pay scale + federal benefits (pension + TSP + health) + tenure security; slower promotion but strong lifetime comp.
  • βœ“System-specific certification β€” Workday HCM / Payroll, UKG Pro, ADP Vantage, SAP SuccessFactors, Deltek Costpoint β€” adds $4-10k for the certified systems in demand.
  • βœ“Bilingual (Spanish + English) adds $2-4/hr in most metros for the employee-facing payroll role at large hourly-workforce employers (retail, hospitality, manufacturing).
  • βœ“Remote work β€” 60-80% of payroll roles are remote-first post-2020. Trade metro premium for remote flexibility, or negotiate for a base-only comp package if remote.

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Payroll and Timekeeping Clerks Salary by State

Best Cities (cost-adjusted) β†’

Salary Map β€” Click a state for details

$45K
$75Kβ–  No data

Top Paying States

District of Columbia
$75K
+28%
California
$65K
+12%
Washington
$65K
+11%
Colorado
$64K
+10%
Massachusetts
$64K
+9%
New Hampshire
$63K
+8%
Alaska
$62K
+7%
Connecticut
$62K
+7%
Hawaii
$62K
+7%
Illinois
$61K
+5%
Vertical line = national median. Click a state for full details.
StateMedianvs. National
District of Columbia$74,670+28.2%
California$65,340+12.2%
Washington$64,560+10.8%
Colorado$64,140+10.1%
Massachusetts$63,670+9.3%
New Hampshire$63,090+8.3%
Alaska$62,210+6.8%
Connecticut$62,200+6.8%
Hawaii$62,070+6.5%
Illinois$61,390+5.4%
1–10 of 51

Payroll and Timekeeping Clerks Salary by Metro Area

Metro AreaMedianvs. National
San Francisco-Oakland-Fremont, CA$80,510+38.2%
San Jose-Sunnyvale-Santa Clara, CA$77,950+33.8%
Santa Rosa-Petaluma, CA$68,870+18.2%
Santa Cruz-Watsonville, CA$68,380+17.4%
Kahului-Wailuku, HI$67,740+16.3%
Fort Collins-Loveland, CO$67,710+16.2%
Boston-Cambridge-Newton, MA-NH$66,930+14.9%
Bremerton-Silverdale-Port Orchard, WA$66,800+14.7%
Mount Vernon-Anacortes, WA$66,650+14.4%
Seattle-Tacoma-Bellevue, WA$66,630+14.4%
1–10 of 362
Data Source: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS). Data reflects the most recent annual survey.
How does this compare to pro athletes?
A payroll and timekeeping clerks earning $58,260/year would need 1023 years to match Stephen Curry's NBA salary, or 1099 yearsto match Patrick Mahomes' NFL contract.
See all sports & celebrity salaries β†’
πŸ“ˆ See how payroll and timekeeping clerks salaries have changed over the past decade.
View Payroll and Timekeeping Clerks salary trend (2011–2024) β†’