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Michigan Occupational Information System
#054 - PAYROLL CLERK

Payroll Clerks compile data and enter it; or compute and post wages and reconcile errors to maintain payroll records, using a computer or calculator.

 JOB DUTIES 

Payroll Clerks may:

Calculate earnings (regular and overtime) and deductions such as taxes, social security, credit union payments, insurance, bond purchases, and union dues

Enter the above figures on checks, check stubs, and master payroll sheets or on forms for computer preparation of checks

Prepare and distribute pay envelopes and/or submit data to financial institutions for direct deposit of earnings to employees' bank accounts

Keep records of sick leave and nontaxable wages

Prepare periodic reports of earnings and tax deductions

Explain calculations to employees and resolve errors in amounts they received

Type wage information forms and reports

Check and file wage information forms

Keep accurate year-to-date wage and fringe benefit information on each employee

Timekeepers may:

Review time sheets, work charts, and time cards

Compute total time worked by employees and the type of time, such as regular hours, overtime, etc.

Post this data on master payroll sheets for use in the calculation of wages

The duties of Payroll Clerks and Timekeepers may overlap considerably. In some establishments, one person may be responsible for payroll preparation and timekeeping duties.

Payroll and Timekeeping Clerks may use machines and materials such as:

OCCUPATIONAL SPECIALTIES

Payroll Clerks and Timekeepers may specialize in these areas:

215.382-014 PAYROLL CLERKS compute employee wages and deductions and transcribe data to payroll records.

215.362-022 TIMEKEEPERS compile employees' time and production records.

215.362-018 FLIGHT-CREW-TIME CLERKS compile flight time records of flight officers for payroll and crew scheduling departments to insure the accuracy of the payroll and legality of flights.

215.362-022 PAY AGENTS interview employees to discuss hours worked and pay adjustments to be made.

Some Payroll Clerks and/or Timekeepers compute earnings for employees working on bonus, commission, or piecework systems and are known as bonus clerks, commission clerks, piecework clerks, or time checkers.

In addition to learning about these specialties, you may find it helpful to explore the following MOIScripts:

WORKING CONDITIONS AND REQUIREMENTS

Payroll and Timekeeping Clerks work alone or with other clerks under the supervision of payroll or timekeeping supervisors. They generally work in comfortable, well lighted offices as part of the personnel or accounting departments. In large offices, distractions because of noise may be a problem.

Payroll and Timekeeping Clerks generally work a 5-day, 35- to 40-hour week. Some Payroll and Timekeeping Clerks join unions which represent employees where they work. Union members must pay dues.

You Should Prefer:

• Performing routine, standardized duties

• Working with things and data

• Using calculators and other machines

You Should Be Able To:

• Perceive detail in written material or tables

• Understand record-keeping and data-gathering procedures

• Perform arithmetic operations quickly and accurately

• Find and correct arithmetic errors

• Deal with people effectively, both on the phone and in person

• Keep work knowledge in confidence

• Work within precise limits or standards of accuracy

• Meet deadlines and work under pressure

Math Problem You Should Be Able to Solve:

Mary Smith makes $9.40 an hour and she worked the following hours last week. What is her gross income for the week?

Mon 7:30-4:00

Tue 7:15-3:00

Wed 8:00-4:45

Thur 7:45-5:00

Fri 8:00-3:30

Reading Example You Should Be Able to Read and Comprehend:

Should be able to read and understand payroll terminology. For example, "gross pay, net pay, and F.I.C.A".

Writing Example You Should Be Able to Produce:

Prepare a statement of earnings and deductions.

Thinking Skill You Should Be Able to Demonstrate:

When working with payroll there is generally a lot of pressure to make sure everyone gets paid on time. With such a large responsibility, it is important to think ahead and be prepared for the work that needs to be done, possibly anticipating problems or obstacles which may get in the way of payroll.

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EDUCATION AND PREPARATION OPPORTUNITIES

NOTE: On-The-Job Training provided by the employer or a High School Diploma or Equivalent or a High School Diploma with specific Vocational Education Classes or a Certificate (program of up to one year of study beyond high school) or an Associate Degree (two years of study beyond high school) may qualify a person for this occupation.

The following education and preparation opportunities are helpful in preparing for occupations in the MOIScript:

***SCHOOL SUBJECTS***

0600 BUSINESS , 0700 CAREERS , 0900 COMMUNICATIONS , 1000 COMPUTERS , 1100 ECONOMICS , 1300 ENGLISH , 2200 MATH , 3100 STUDY & WORK OPTIONS

***VOCATIONAL EDUCATION PROGRAMS***

005 ACCOUNTING & COMPUTING

Approved programs in Accounting and Computing prepare students to compute, calculate, and record numbers to keep financial records. Instruction includes using billing machines, bookkeeping machines, and computers to prepare bills and reports, obtain records, and find information. Courses in other office & distributive education programs may be required for completion of this program.

High school students should consult their guidance office for more information about the specific requirements of this program at their school or area vocational education center.

***POSTSECONDARY PROGRAMS***

181 BOOKKEEPING

Programs in Bookkeeping provide opportunities to gain the knowledge and skills needed for employment maintaining records of daily business transactions. Individuals who teach Bookkeeping at the secondary school level must have a Michigan Teaching Certificate.

Courses vary from school to school but may include:

  Search for a College and/or Instructional Program 

***APPRENTICESHIP OPPORTUNITIES***

There are no Apprenticeships related to this MOIScript

***MILITARY TRAINING PROGRAMS***

Please check the Military website at http://www.myfuture.com

FINANCE AND ACCOUNTING SPECIALISTS

Millions of paychecks are issued and large amounts of materials are purchased by the services each year. To account for military spending, exact financial records must be kept of these transactions. Finance and accounting specialists organize and keep track of financial records. They also compute payrolls and other allowances, audit accounting records, and prepare payments for military personnel.

What They Do

Finance and accounting specialists in the military perform some or all of the following duties:

• Record details of financial transactions on accounting forms

• Audit financial records

• Prepare pay and travel vouchers (checks), earnings and deductions statements, and financial accounts and reports

• Disburse cash, checks, and advance travel pay, and bonds

• Organize information on past expenses to help plan budgets for future expenses

Special Qualifications

Depending on the specialty, entry into this occupation may require courses in mathematics, bookkeeping, or accounting.

Training Provided

Job training consists of between 6 to 12 weeks of classroom instruction, including practice in accounting techniques. Course content typically includes:

• Accounting principles and procedures

• Preparation and maintenance of financial records

• Statistical analyses to interpret financial data

• Computation of pay and deductions

Work Environment

Finance and accounting specialists work in offices on land or aboard ships.

Helpful Attributes

Helpful school subjects include mathematics, statistics, bookkeeping, and accounting. Helpful attributes include:

• Ability to work with numbers

• Interest in operating office machines such as computers, calculators, and bookkeeping machines

• Interest in work requiring accuracy and attention to detail

Civilian Counterparts

Civilian finance and accounting specialists work for all types of businesses and government agencies. They perform duties similar to military finance and accounting specialists. Civilian finance and accounting specialists are also called accounting clerks, audit clerks, bookkeepers, or payroll clerks.

Opportunities

The services have about 8,000 finance and accounting specialists. On average, they need about 750 new specialists each year. After job training, finance and account specialists perform simple routine accounting and finance activities under the direction of supervisors. With experience, they are given more difficult tasks, such as auditing, and may become responsible for checking the work of others. In time, finance and accounting specialists may become supervisors or managers of accounting units or pay and finance centers.  

E-Learning Courses and Programs 

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OPPORTUNITIES FOR EXPERIENCE AND METHODS OF ENTRY

Secondary vocational education programs in accounting and computing may offer a co-op component through which experience may be gained. Other ways to obtain experience include summer or part-time work available in many businesses and postsecondary programs in bookkeeping.

School-to-Work opportunities include:

informal apprenticeships

mentorships

job shadowing experiences

touring a local Payroll Clerk employer

internships

volunteer work with a Payroll Clerk employer

community service work with an agency

The most common method of becoming a Payroll Clerk is direct application to employers. Assistance may be obtained from school placement offices, newspaper want ads, or local offices of Michigan Works!. In addition, you should access and search the Internet's on-line employment services sites such as:

Michigan Talent Bank (http://www.michworks.org/mtb/user/MTB_EMPL.EntryMainPage)

Yahoo! Careers (http://careers.yahoo.com/)

Michigan Department of Career Development (http://www.michigan.gov/mdcd/)

Michigan Works! (http://www.michiganworks.org)

You should also enter an electronic resume on these on-line services.

EARNINGS AND ADVANCEMENT

Earnings of Payroll and Timekeeping Clerks vary depending on the size of the employing organization and its location in the state. Earnings tend to be higher in urban areas. The median annual salary for Payroll Clerks in 2001 was $28,548.  The median yearly earnings of  "all" workers in the U.S. were $31,044 in 2001.  

In Michigan, most Payroll Clerks working in private industry earned an average annual income between $25,200 and $37,300 in early 2002. Payroll Clerks in several Michigan cities earned (2001):

In mid 2002, Payroll Clerks employed by the State of Michigan earned from $28,564 to $41,990 per year. Those employed by county governments in Michigan earned from $17,144 to $38,945 in early 2001. Personnel and Payroll Clerks working for the City of Detroit earned from $23,400 to $26,700 in early 2002.

Payroll Clerks usually receive paid sick leave; paid vacations and holidays; hospitalization, life and disability insurance; dental insurance; and retirement plans. Some employers may offer stock purchase/savings plans.

Newly hired employees often begin in positions such as general clerk until experience is gained. Experienced Payroll Clerks may become supervisors or may go into cost or general accounting.

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EMPLOYMENT AND OUTLOOK

Nationally, there were about 198,100 Payroll Clerks employed in 2000. Little or no change is expected is expected in the employment of Payroll and Timekeeping Clerks through the year 2010. The industry distribution for Payroll and Timekeeping Clerks looked like this:

Computers are playing an important role in the employment of Payroll and Timekeeping Clerks. As the capabilities increase and the price decreases, more small to medium size businesses will computerize. The productivity gains associated with the automation of personnel and payroll information will severely limit employment opportunities in this occupation, and even eliminate some jobs. Also, some companies have contracted with computer service bureaus to process their payroll as a cost-saving measure.

There are approximately 5,650 Payroll and Timekeeping Clerks employed in Michigan. They worked in all industries, usually for large firms.

 The employment of Payroll and Timekeeping Clerks in Michigan is expected to decrease through the year 2008. It is expected that about 110 openings will occur yearly as Payroll Clerks retire or leave the labor force for other reasons. Annually, some additional openings may occur as workers change jobs or occupations.

Although there will be an expansion of businesses and an accompanying increase in record keeping, employment of Payroll and Time-keeping Clerks is expected to decrease because more businesses are using computers and business machines to process their payrolls.      

MICHIGAN'S AREA EMPLOYMENT OUTLOOK TO 2008    

MSA designates a Metropolitan Statistical Area

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SOURCES OF ADDITIONAL INFORMATION

Printed occupational information is available upon written request from the sources below:

SUMMARY PROFILE

The occupation of Payroll Clerk can be summarized by the following:

Copyright © 2003 Michigan Department of Career Development