Payroll and Timekeeping Clerks

Career summary

#No alternate titles CJ

Timekeeping clerks distribute and collect timecards for each pay period. They review employee work charts or timecards to be sure they are complete. In companies that bill for staff time, timekeeping clerks make sure the hours recorded are charged to the correct job.

Payroll clerks screen timecards for math and other errors. They resolve these problems with the employee or supervisor.

Clerks compute paycheck amounts by subtracting deductions, such as for federal and state taxes. Many use computer software to calculate payroll. They issue employee paychecks.

Clerks keep track of changes in tax and deduction laws. They advise employees on tax deductions and other required withholdings. In addition, they inform managers and employees about changes in payroll policies.

Payroll clerks sometimes gather data from timesheets and other records. They use the data to prepare reports for managers or other departments. Payroll clerks also prepare wage and tax statements at the end of the year. They mail these to employees for filing their tax returns.

Many offices are now using automated timekeeping systems. Clerks are still needed to carry out tasks such as advising employees on changes in tax and deduction laws.

Payroll clerks are also called payroll technicians.

Related careers

This career is part of the Business Management and Administration cluster of careers.

Related careers include:

• Bill and Account Collectors
• Billing Clerks
• Bookkeeping and Accounting Clerks
• Executive Secretaries
• General Office Clerks
• Health Information Technicians
• Insurance Policy and Claims Clerks
• Secretaries

Military careers

• Finance and Accounting Specialists

Job duties

Task list

The following list of tasks is specific to payroll and timekeeping clerks.

• Process and issue employee paychecks.
• Compute pay by subtracting deductions. May enter data and operate payroll software on a computer.
• Maintain paper files for reference or research.
• Review employee work charts, timecards, or timesheets for completeness.
• Make sure hours recorded are charged to the right job so that clients are billed correctly.
• Review timecard for errors and resolve problems with employee or supervisor.
• Compute earnings based on the number of hours each employee worked.
• Distribute and collect timecards each pay period.
• Update forms regarding benefits and insurance.
• Record employee information and update files with changes.
• Prepare and mail earnings and tax withholding statements at end of year.
• Keep track of changes in tax and deduction laws and advise employees.
• Adjust pay to reflect errors or increases.
• Gather employee and payroll data. Prepare reports for other departments or managers.
• Coordinate special programs that involve payroll deductions.

Common work activities

Payroll and timekeeping clerks perform the following tasks. These tasks are common to many careers.

• Get information needed to do the job
• Process information
• Use computers
• Document and record information
• Perform administrative tasks
• Evaluate information against standards
• Communicate with supervisors, peers, or subordinates
• Organize, plan, and prioritize work
• Establish and maintain relationships
• Identify objects, actions, and events
• Monitor events, materials, and surroundings
• Analyze data or information
• Update and use job-related knowledge
• Make decisions and solve problems
• Explain the meaning of information to others

Work requirements

Working conditions

In a typical work setting, payroll and timekeeping clerks:

Interpersonal relationships

• Have a medium level of social contact. They work with alone and with coworkers.
• May deal with unpleasant, angry, or discourteous employees. Employees may become unpleasant if their pay is not correct.
• Are often placed in conflict situations. If they find errors they must resolve problems with employee or supervisor.
• Communicate with employees and supervisors daily by telephone, e-mail, or in person. They write letters and memos, but less often.
• Work in a group or as part of a team.
• Are somewhat responsible for the work done by other clerks.

Physical work conditions

• Nearly always work indoors.
• Work somewhat close to other people, such as when sharing office space.

Work performance

• Must be very exact in their work. Errors could cost employees or the company money.
• Repeat the same tasks over and over, such as reviewing timecards.
• Make decisions on a weekly basis that affect employees. They can make most decisions without consulting with a supervisor.
• Are usually able to set their tasks for the day without consulting with a supervisor. This is because they do many of the same tasks each day.
• Must meet strict deadlines on a weekly basis.

Hours/travel

• Generally have a set schedule each week.
• Usually work 40 hours per week.

Physical demands

Payroll and timekeeping clerks frequently:

• Sit for long periods of time.
• Repeat the same movements.

It is important for payroll and timekeeping clerks to be able to:

• See details of objects that are less than a few feet away.
• Understand the speech of another person.
• Speak clearly so listeners can understand.

It is not as important, but still necessary, for payroll and timekeeping clerks to be able to:

• See details of objects that are more than a few feet away.
• Use fingers to grasp, move, or assemble very small objects.
• Focus on one source of sound and ignore others.

Skills and abilities

Payroll and timekeeping clerks need to:

Communicate

• Read and understand work-related materials.
• Listen to others and ask questions.
• Understand spoken information.
• Speak clearly so listeners can understand.
• Write clearly so other people can understand.
• Understand written information.

Reason and problem solve

• Notice when something is wrong or is likely to go wrong.
• Follow guidelines to arrange objects or actions in a certain order.
• Analyze ideas and use logic to determine their strengths and weaknesses.
• Use reasoning to discover answers to problems.
• Combine several pieces of information and draw conclusions.
• Concentrate and not be distracted while performing a task.

Use math and science

• Choose a mathematical method or formula to solve problems.
• Use math skills to solve problems.
• Add, subtract, multiply, and divide quickly and correctly.

Manage oneself, people, time, and things

• Manage the time of self and others.
• Check how well one is learning or doing something.

Perceive and visualize

• Quickly and accurately compare letters, numbers, objects, pictures, or patterns.

Education and training

Educational programs

The programs of study listed below will help you prepare for the occupation or career cluster you are exploring.

Programs of study directly related to this occupation

• Accounting Technology and Bookkeeping

Other programs of study to consider

• Accounting
• Office Support

Training

To work as a payroll and timekeeping clerk, you typically need to:

• have a high school diploma or equivalent; and
• complete moderate-term, on-the-job training.

Education after high school

No formal training is required beyond high school. However, payroll and timekeeping clerks can gain skills through formal training programs. High schools, business schools, and community colleges all offer business education programs. In these programs you study word processing, business communications, records management, and office procedures. Learning spreadsheet software is also very helpful.

You should be familiar with hiring and promotion practices and benefits packages. In addition, you should be familiar with the procedures for tax withholding.

On-the-job training

New clerks usually spend up to one year in training. You will learn about personnel issues, work place practices, and company policies. If you do not have college-level training directly related to personnel work, you will spend more time in training.

Military training

Some branches of the military train people to be finance and accounting specialists. Training lasts from six to 12 weeks, depending on your specialty. Additional training occurs on the job.

Helpful high school courses

You should take a general high school curriculum that meets the state's graduation requirements. You will be required to take both math and science classes to graduate.

Helpful electives to take in high school that prepare you for this career include:

• Accounting
• Computer Applications
• Office Procedures

The courses listed above are meant to help you create your high school plan. If you have not already done so, talk to a school counselor or parent about the courses you are considering taking.

You should also check with a teacher or counselor to see if work-based learning opportunities are available in your school and community. These might include field trips, job shadowing, internships, and actual work experience. The goal of these activities is to help you connect your school experiences with real-life work.

Join some groups, try some hobbies, or volunteer with an organization that interests you. By participating in activities you can have fun, make new friends, and learn about yourself. Maybe one of them will help direct you to a future career. Here are examples of activities and groups that may be available in your high school or community.

Things to know

Employers usually require applicants to have at least a high school diploma or equivalent. Many employers prefer applicants with a higher level of education. Most employers prefer applicants who have experience with computer software. Knowledge of word processing and spreadsheet software is especially valuable. Employers also may prefer applicants who have a few years of experience working in an office.

Job listings

Listed below are links to job categories from the National Labor Exchange that relate to this career. Once you get a list of jobs, you can view information about individual jobs and find out how to apply. If your job search finds too many openings, or if you wish to search for jobs outside of Washington, you will need to refine your search.

• Payroll and Timekeeping Clerks 

To get a listing of current jobs from the WorkSource system, go to the WorkSource website .

Wages

Wages vary depending on the area of the country, the size of the city, and the type and size of the employer. Wages also vary based on the clerk's training and experience. Clerks who have a college degree are likely to start at higher salaries.

Full-time payroll and timekeeping clerks often receive benefits. Typical benefits include paid vacation, sick leave, and health insurance.

Employment and outlook

Washington outlook

The table below provides information about the number of workers in this career in various regions. It also provides information about the expected growth rate and future job openings.

National employment

Payroll and timekeeping clerks work in nearly every industry.

Major employers:

• Local, state, and federal government agencies
• Business management companies
• Temporary worker agencies
• Schools

National outlook

Demand for this occupation is declining. This is due to automation because many employees can now enter their own payroll and timekeeping information by computer. Companies still need payroll clerks to calculate payroll and make sure employees are paid.

Many jobs will be available as current payroll and timekeeping clerks move to other occupations or retire.

Other resources

Washington Business Week 
PO Box 1170
Renton, WA 98057
253.237.3545

References

Career cluster

• Business Management and Administration

Career path

• Conventional (Business Operations)

O*Net  occupation

• Payroll and Timekeeping Clerks (43-3051.00) 

O*Net job zone 

• Job Zone 2 - Some preparation needed. Some previous work-related skill, knowledge, or experience may be helpful in these occupations, but usually is not needed.

DOT occupations

• Flight-crew-time Clerk (215.362-018) 
• Payroll Clerk (215.382-014) 
• Timekeeper (215.362-022) 

Holland occupational cluster

• Conventional/Enterprising/Social

COPSystem

• Clerical