Payroll and timekeeping clerks perform a vital function: ensuring that employees are paid on time and that their paychecks are accurate. If inaccuracies occur, such as monetary errors or incorrect amounts of vacation time, these clerks research and correct the records.

SIGNIFICANT POINTS:

• Payroll and timekeeping clerks are found in every industry.
• Workers train on the job; employers prefer high school graduates who have computer skills.
• Those who have completed a certification program will have an advantage in the job market.

JOBS IN THE INDUSTRY:

Automated timekeeping systems that allow employees to enter the number of hours they have worked directly into a computer have eliminated much of the data entry and review by timekeepers and have elevated the job of payroll clerks, allowing them to perform more complex tasks. In offices that have not automated this function, however, payroll and timekeeping clerks still perform many of the traditional job functions.

The fundamental task of TIMEKEEPING CLERKS is distributing and collecting timecards each pay period. These workers review employee work charts, timesheets, and timecards to ensure that information is properly recorded and that records have the signatures of authorizing officials. In companies that bill clients for the time worked by staff—law or accounting firms, for example—timekeeping clerks make sure that the hours recorded are charged to the correct job so that clients can be properly billed. These clerks also review computer reports listing timecards that cannot be processed because of errors, and they contact the employee or the employees supervisor to resolve the problem. In addition, timekeeping clerks are responsible for informing managers and other employees about procedural changes in payroll policies.

PAYROLL CLERKS, also called payroll technicians, screen timecards for calculating, coding, or other errors. They compute pay by subtracting allotments, including Federal and State taxes and contributions to retirement, insurance, and savings plans, from gross earnings. Increasingly, computers perform these calculations and alert payroll clerks to problems or errors in the data. In small organizations or for new employees whose records are not yet entered into a computer system, clerks may perform the necessary calculations manually. In some small offices, clerks or other employees in the accounting department process payrolls.

Payroll clerks record changes in employees addresses; close out files when workers retire, resign, or transfer; and advise employees on income tax withholding and other mandatory deductions. These workers also issue and record adjustments to workers pay because of previous errors or retroactive increases. Periodically, they prepare and mail earnings and tax-withholding statements for employees use in preparing income tax returns. Payroll clerks need to be aware of changes in tax and deduction laws, so that they can implement them.

In small offices, payroll and timekeeping duties are likely to be included in the duties of a general office clerk, a secretary, or an accounting clerk. However, large organizations employ specialized payroll and timekeeping clerks to perform these functions. In offices that have automated timekeeping systems, payroll clerks perform more analysis of the data, examining trends and working with computer systems. They also spend more time answering employees questions and processing unique data.

EARNINGS:

Salaries of payroll and timekeeping clerks may vary considerably. The region of the country, size of city, and type and size of establishment all influence salary levels. Also, the level of expertise required and the complexity and uniqueness of a clerk’s responsibilities may affect earnings.

Median annual earnings of payroll and timekeeping clerks in May 2006 were $32,400. The middle 50 percent earned between $26,190 and $39,420. The lowest 10 percent earned less than $21,150, and the highest 10 percent earned more than $46,500. Median annual earnings in the industries employing the largest numbers of payroll and timekeeping clerks in May 2006 were:

Some employers offer educational assistance to payroll and timekeeping clerks.

From the Bureau of Statistics, Occupational Outlook Handbook Online: http://www.bls.gov/oco/ocos149.htm

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