Job seekers are taking a good look at the payroll profession — and for good reason.

Ever-changing tax laws and reporting standards, and the need for people who know how to navigate them, are driving demand for skilled payroll professionals. Payroll pros have also been on the front line of helping their organizations support remote workers and make sure that these employees receive timely, accurate payments.

For several years, the Robert Half Salary Guide has highlighted payroll management as one of the hottest areas of employment for the finance and accounting industry. The payroll manager/supervisor position, discussed later in this post, is one of the most in-demand positions this year.

If you’re thinking about starting or switching to a career in payroll, you’re probably wondering what lies ahead and what type of salary you could earn at various job levels in this profession. The following is an introductory guide to the payroll career path.

Payroll clerk

Most career trajectories in the payroll department start with the payroll clerk position. Managed by a more senior professional, the payroll clerk focuses on day-to-day functions such as issuing paychecks and responding to employee queries. In smaller organizations, this role may overlap with basic duties in accounting and/or human resources (HR).

You can find salary projections for new hires with little or no experience in payroll and for professionals with strong skill sets and several years of relevant experience.

Of course, salaries can vary by location, so use our Salary Guide to see the range for your local market.

You don’t need a college degree to be hired as a payroll clerk, but you should have a knack for math and be proficient in using Microsoft Office applications like Excel and Word. Payroll certifications such as the Fundamental Payroll Certification (FPC) from the American Payroll Association (APA) can help your application stand out.

Additionally, top candidates for payroll clerk roles typically have excellent verbal and written communication skills, robust problem-solving abilities, and a customer service mindset.

See this post for payroll interview questions you should be ready to answer.

Payroll coordinator/administrator

The next step on the payroll career path is the coordinator or administrator role, a position responsible for more complex payroll tasks. A typical day for this professional might include running payroll reports, preparing statements, reconciling ledgers, checking for compliance and making sure taxes are properly paid. There may also be duties related to employee onboarding and benefits.

The salary projections are higher for candidates with above-average technical skills and a rich work history.

To move up to the payroll coordinator/administrator role, you’ll need an excellent command of commonly used automated payroll solutions such as ADP or Kronos, and possibly other services like Bill.com and Gusto, depending on the size of your organization. Solid soft skills — especially communication, problem solving and attention to detail — are also essential to success in this role.

At this level, many employers expect candidates to have at least an associate degree. The Certified Payroll Professional (CPP) certification is also a common preference or even a requirement. This more advanced certification from the APA is open only to payroll practitioners with extensive experience, as this credential affirms your understanding of the main competencies in the field.

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Payroll data analyst

Becoming an analyst as part of your payroll career path can mean stepping away from the daily tasks of payroll processing. As a data analyst focused on payroll data, you would mine the company’s personnel data to identify trends, suggest improvements and flag issues before they become challenging to fix.

Payroll experience is vital for this role, as is a thorough understanding of the field’s regulatory issues. You’ll also need to demonstrate strong mathematical and problem-solving skills, plus the ability to model data using the more advanced features in Microsoft Excel.

Experience with cloud-based payroll technology can be an advantage, and familiarity with enterprise resource planning (ERP) systems can be useful for this position, too.

Payroll manager/supervisor

After about five years down the payroll career path, you’re ready to take the lead. Responsibilities at the payroll manager/supervisor level include budgeting, maintaining compliance, guiding departmental policy, partnering with other divisions and advising senior executives. There’s also the day-to-day work of staff management, including hiring, conducting performance evaluations and guiding your team’s professional development.

The skill set required at this level depends largely on where payroll sits within the company. Some payroll managers also oversee HR or accounts payable. In addition to the CPP certification, employers seek candidates with at least a bachelor’s degree in accounting, finance, HR or business.

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Is the payroll career path for you?

A career in payroll is about more than remunerating employees. It’s a multidisciplinary field that encompasses finance, HR, customer service, IT, data analysis, and compliance and risk management. If you’re willing to learn relevant skills and knowledge related to these disciplines throughout your career, you could make the payroll career path even more rewarding.

Also, to succeed in any role in this profession, you’ll need a sharp eye for detail, excellent mathematical and time management skills, plus the ability to juggle various tasks and work well under pressure. Strong communication, organizational and problem-solving skills are other must-have abilities. Honesty, trustworthiness and reliability are also key attributes most employers specifically look for in payroll job candidates.