Payroll Administrator/
Supervisor/Manager

The Job and What's Involved

Payroll administrators, supervisors and managers work as a team to administer their organisation's payroll. They make sure that every member of staff is paid the correct amount of pay on the right date, taking into account payments and deductions such as tax, National Insurance, sick pay, maternity pay and pensions.

A payroll administrator may:

• Check time sheets and clock cards to see how many hours each employee has worked.
• Calculate amounts of pay.
• Make adjustments to pay to cover factors such as overtime, bonuses and allowances.
• Make deductions from pay to cover repayments (such as salary advances or student loans) and to make legal and voluntary deductions (such as court orders and Give As You Earn).
• Deduct the correct amounts for income tax, National Insurance and pension contributions.
• Calculate holiday, sick, maternity, adoption and paternity pay.
• Input data into a computer to meet the deadlines for weekly and monthly payments.
• Issue pay by electronic transfer, cash or cheques.
• Keep accurate records.
• Undertake general office duties, such as answering the telephone and photocopying.

A payroll supervisor may:

• Supervise the work of a payroll team.
• Train new staff.
• Allocate and monitor tasks to make sure they are completed accurately and on time.
• Liaise with human resources departments to monitor new staff, staff leaving or retiring, and current pay rates.
• Make sure everyone understands and follows the organisation's policies, procedures and legal requirements.
• Set up and maintain staff records.
• Update payroll software.
• Answer queries.
• Liaise with organisations such as HM Revenue and Customs.
• Produce statistics.

A payroll manager may:

• Manage the work of a number of payroll teams.
• Give advice on legal requirements covering pay, working hours, deductions and benefits.
• Help to create payroll policies and procedures.
• Develop contingency and business recovery plans in the event of a disaster, e.g. corruption of data on the computer.
• Influence business strategy.
• Make sure that computer software is efficient and up to date.
• Make sure that all payroll staff receive the right training.

Payroll staff usually work standard office hours, Monday to Friday. They may work overtime at busy times, such as the end of the financial year. Part-time, flexible and job-sharing opportunities may be available.

The work is office based and staff spend most of the day sitting at a desk using computers, calculators and the telephone. More senior staff may also travel to meetings.

Starting salaries for payroll administrators range from £14,000 to £21,000 a year. A payroll supervisor may earn up to £26,000.

Payroll managers may earn over £40,000.

Getting Started with this Career Choice

There are around 50,000 people in the UK who work wholly in payroll and a further 50,000 where payroll is part of their job. Payroll staff are employed by organisations in every industry sector, including:

- Local government
- Finance
- Retail
- Manufacturing
- The NHS

Some payroll staff work for payroll bureaux. These are organisations that undertake payroll services on behalf of employers that do not have their own payroll departments.

Vacancies may be advertised in local newspapers, and by Connexions centres, Jobcentre Plus offices and recruitment agencies. Many vacancies are also advertised on recruitment websites.

Education and Training

There are no set minimum entry qualifications. Many employers prefer applicants with five GCSE's (A*-C), including English and maths. Applicants with relevant experience in areas such as book-keeping are welcomed.

Qualifications that may be useful preparation for entry into payroll work include:

• GCSE's in business and applied business.
• Diploma in business, administration and finance.
• A levels in accounting and in business studies.
• BTEC Level 2 and 3 Certificates and Diplomas in business.
• BTEC Level 4 Higher National Certificate (HNC) and Level 5 Higher National Diploma (HND) in business.
• City & Guilds (C&G) Level 1 and 2 Awards in book-keeping and accounts.
• C&G Level 3 Award in accounting and book-keeping.
• C&G Level 1, 2, and 3 Awards in business finance.

Some payroll administrators enter this work through an Apprenticeship or Advanced Apprenticeship in payroll.

Apprenticeships and Advanced Apprenticeships provide structured training with an employer. As an apprentice you must be paid at least £95 per week; you may well be paid more. A recent survey found that the average wage for apprentices was £170 a week. Your pay will depend on the sector in which you work, your age, the area where you live and the stage at which you have arrived in the Apprenticeship.

Entry to Employment (e2e) can help to prepare those who are not yet ready for an Apprenticeship. In addition, Young Apprenticeships may be available for 14- to 16-year-olds. More information is available from a Connexions personal adviser or at www.apprenticeships.org.uk.

There are different arrangements for Apprenticeships in Scotland, Wales and Northern Ireland. For further information contact Careers Scotland www.careers-scotland.org.uk, Careers Wales www.careerswales.com or Careers Service Northern Ireland www.careersserviceni.com.

A Few More Exams You Might Need

Payroll administrators may be trained by experienced colleagues or by attending training courses. Training is likely to include how to use specialist payroll and accounting software.

There is a range of qualifications for payroll staff. Courses are offered by many local colleges and private training providers and through distance learning.

Qualifications include:

• Association of Accounting Technicians (AAT) Level 2 and 3 Certificate in Payroll Administration.
• International Association of Book-Keepers (IAB) Level 1 and 2 Certificate in Payroll.
• IAB Level 3 Diploma in Payroll.
• IAB Level 2 Certificate and Level 3 Diploma in Computerised Payroll.
• IAB Level 3 Certificate in Bookkeeping.
• The Institute of Certified Bookkeepers Level 3 Diploma in Payroll Management.

Payroll apprentices work towards the AAT Level 2 Certificate in Payroll Administration, while Advanced Apprenticeships lead to the Level 3 Certificate.

The Institute of Payroll Professionals (IPP) offers a set of three one-day National Payroll Certificate courses. It also offers a foundation degree in payroll management accredited by the University of Worcester. The course takes three years and incorporates the IPP Practitioner Certificate in Payroll, Advanced Practitioner Certificate in Payroll and Diploma in Payroll Management.

IPP also offers the one-year part-time Advanced Diploma in Applied Payroll Management at the University of Derby. A further eight months' study can lead to an honours degree in payroll management. An MSc in business and payroll management is available through distance learning over three years.

Payroll Alliance offers four BTEC/Edexcel accredited qualifications:

• Level 4 Professional Award in Payroll Administration.
• Level 4 Certificate in Payroll Practice.
• Level 4 Diploma in Payroll Supervision.
• Level 5 Advanced Professional Diploma in Payroll Management.