Payroll Tax Specialist Job Description: Salary, Duties and more (2023)

Table of contents

  • Professional duties of the payroll tax specialist
  • Requirements for the position of wage tax specialist
  • Skills of the payroll tax specialist
  • Work Environment Payroll Tax Specialist
  • Trends among payroll tax specialists
  • This is how you become a payroll tax professional
  • prospects for advancement
  • Sample job description
  • similar jobs

Payroll tax specialists are responsible for ensuring that your company complies with all applicable payroll tax laws. They typically work with human resources and accounting teams to ensure employees receive accurate paychecks, calculate taxes due on employees' wages, and file the necessary paperwork with the government.

Payroll tax specialists may also be tasked with providing guidance to other members of your organization on how best to take advantage of any available tax breaks or incentives.

Professional duties of the payroll tax specialist

A payroll tax specialist typically has a wide range of responsibilities, which may include:

  • Coordinate with accounting staff to ensure payroll taxes are calculated correctly for the month.
  • Review state laws related to payroll taxes and update company policies as necessary
  • Calculate employee deductions such as federal and state income taxes, Social Security taxes, and other withholding taxes
  • Preparation and submission of income tax returns to state and federal authorities
  • Monitor employee attendance to ensure employees are not being paid for hours not worked
  • Calculate employee wages based on job titles, experience level and hours worked
  • Coordinate with insurance companies to pay employee health insurance premiums.
  • Calculate wage withholdings to ensure employees are not penalized for underpaying taxes
  • Interact with Human Resources employees to ensure compliance with federal regulations regarding payroll taxes

Payroll Tax Specialist Salary and Outlook

Salaries for payroll tax specialists vary based on their level of education and experience, the size of the company they work for and the location of the position.

  • average annual salary:$52,500 ($25.24/hour)
  • Annual salary of the top 10%:$80,500 ($38.7/hour)

Employment of payroll tax specialists is expected to decline over the next decade.

(Video) HR PAYROLL DEPARTMENT EXPLAINED | salary, duties, education, & more!

Job growth will be limited as payroll tax compliance is increasingly automated and many employers use software to calculate and pay their taxes. In addition, some payroll tax functions have been outsourced to third-party providers.

Requirements for the position of wage tax specialist

To become a payroll tax specialist, you may need the following:

Education:Payroll tax specialists are usually required to have at least a high school diploma or GED. Some employers prefer candidates with a bachelor's degree in accounting, finance or business administration. Relevant courses include accounting, business law, economics, finance, payroll and taxes.

Training experience:Payroll tax specialists are typically trained on the job by their new employers. This training can last a few months and may involve mentoring a current payroll tax specialist or performing tasks under supervision until they are confident enough to complete the tasks independently. Payroll tax specialists working for the government can receive extensive training in the form of a boot camp or seminar.

Certifications and Licenses:Payroll tax specialists are required to earn certifications to demonstrate their expertise in the field. Certifications enable professionals to advance their careers and make themselves more attractive to employers.

Skills of the payroll tax specialist

Payroll tax specialists need the following skills to be successful:

Tax knowledge:Payroll tax specialists must have a thorough understanding of the various taxes for which an employer may be held liable. This includes federal, state, and local taxes, as well as any other taxes that may apply to the employer's industry. For example, if the employer is a construction company, it may be responsible for paying a special tax on the wages it pays to its workers.

(Video) PAYROLL Interview Questions & Answers! (Payroll Specialist, Officer, and Manager Interview Tips!)

Attention to detail:Payroll tax specialists must pay close attention to detail to ensure they are entering the correct information for each employee. They also need to make sure they enter the correct information for each tax calculation. This requires a thorough understanding of tax laws and regulations.

communication skills:Payroll specialists communicate with many different people, including employees, managers, accountants, and other payroll specialists. Effective communication skills can help you convey information clearly and answer questions accurately. You can also use communication skills to solve problems between employees and managers.

Computer Erase:Payroll tax specialists must be proficient in computer programs such as Excel, Word, and other software that can help them carry out their duties. Computer skills can also help them navigate the Internet to find information about tax laws and other regulations.

Organizational skills:Payroll tax specialists often work with multiple clients at the same time, so it is important that they are able to organize their time and tasks effectively. This can help them meet their clients' needs and ensure they are submitting accurate and complete tax forms. Organizational skills can also help you keep track of your client files and ensure you submit the correct forms to the government.

Work Environment Payroll Tax Specialist

Payroll tax specialists work in a variety of environments, including corporate payroll departments, accounting firms, and government agencies. They typically work a regular 40-hour week, although they may have to work overtime during tax season or around tax deadlines. Payroll tax specialists must have a solid understanding of state and federal payroll tax laws and regulations and the ability to use computerized payroll systems. You must also be able to communicate effectively with both managers and employees.

Trends among payroll tax specialists

Here are three trends influencing the way payroll tax professionals work. Payroll tax professionals need to keep abreast of these developments to keep their skills relevant and maintain a competitive edge in the workplace.

The need for more technical skills

(Video) Day in the Life of the Payroll Department

As businesses become more complex, the need for payroll tax specialists with technical skills will only increase.

Payroll tax specialists are responsible for calculating and filing employee taxes, which requires in-depth knowledge of both the laws that apply to your business and the software used to calculate taxes. To stay ahead of the competition, they must develop these technical skills and learn to use new technologies to make their jobs easier.

The growth of remote work

The rise of remote work is a trend that is rapidly changing the way we think about work. As more people choose to work from home, the need for payroll tax specialists who can manage this type of arrangement will increase.

This means payroll tax specialists must be able to understand the unique challenges that come with remote work, such as: B. Tax and benefits administration. You must also be able to communicate effectively with employees who may not be in the same location as you.

More focus on cyber security

As businesses become more dependent on technology, the need for cybersecurity professionals will only increase. Because cyber attacks are becoming more common, businesses need professionals who can protect them from these threats.

(Video) A Beginners Guide to Payroll Taxes

As the need for cybersecurity professionals increases, so does the demand for payroll tax specialists with expertise in this area. By learning about cyber security, payroll tax specialists can help companies protect themselves from attacks and ensure the security of their data.

This is how you become a payroll tax professional

A career as a payroll tax specialist can be very rewarding. It offers the opportunity to work with a wide variety of people and companies and offers the opportunity to really make a difference in people's lives. As a payroll tax specialist, you must have a solid understanding of federal and state tax laws. You must also be able to accurately calculate deductions and withholdings.

To become a successful payroll tax specialist, you must have a strong background in mathematics and be able to think critically and solve problems creatively. You must also be able to work independently and keep up to date with the latest tax laws and regulations.

prospects for advancement

Payroll tax specialists can advance their careers by becoming Certified Public Accountants (CPAs). CPAs have more advancement opportunities and higher earning potential than non-certified payroll specialists. To become a CPA, payroll tax professionals must pass a rigorous exam and meet other requirements set by their state's accounting authority.

Sample payroll tax specialist job description

As a payroll tax specialist at [CompanyX], you are responsible for the accurate and timely preparation, filing, and payment of all federal, state, and local payroll taxes. This includes but is not limited to quarterly and annual tax returns, tax filings and tax audits. You will also be responsible for maintaining payroll tax records and preparing tax reports for senior management. In addition, you support payroll accounting in clarifying and clarifying wage tax issues.

The ideal candidate will have experience preparing payroll tax returns and filing, as well as complying with payroll tax regulations. He or she is detail oriented, organized and able to work independently. Strong investigative and analytical skills are a must, as is the ability to maintain confidentiality.

duties and responsibilities

(Video) Payroll Tax | Video 1 – Understanding the basics, allowances, FBT, exemptions and rebates

  • Generate and create quarterly and annual payroll tax reports.
  • Reconcile payroll tax accounts
  • Solve income tax assessments
  • Prepare federal, state, and local payroll tax filings
  • Updating and maintaining payroll tax records
  • Assistance with income tax registration at the end of the year
  • Respond to payroll tax audits
  • Prepare income tax returns
  • Investigate payroll tax issues
  • Training employees on payroll tax compliance
  • Stay up to date on changes in the wage tax law
  • Other functions that can be assigned

Required Skills and Qualifications

  • Bachelor's degree in economics, accounting, finance or related fields
  • 3-5 years of experience in payroll tax compliance or a related field
  • Strong understanding of federal, state and local payroll tax laws and regulations.
  • Ability to study and interpret changes in tax law.
  • Excellent analytical and problem solving skills.
  • Detail oriented with strong organizational skills

Preferred skills and qualifications

  • CPA, CPP or other relevant certification
  • Master's degree in tax or law
  • At least 5 years of experience in payroll tax compliance or a related field
  • Experience in dealing with automated billing systems

similar jobs

  • Rules
  • financial manager
  • payroll clerk


What is the job description for a payroll tax specialist? ›

Review each payroll cycle and ensure timely and accurate processing of payroll transactions including wage payments, benefits withheld, garnishments, taxes, and other deductions.

What is the salary of a full level tax specialist at ADP? ›

The chart shows total cash compensation for the ADP Full Level Tax Specialist I in the United States, which includes base, and annual incentives can vary anywhere from $45,838 to $61,662 with an average total cash compensation of $53,750.

What are the job duties of payroll and benefits? ›

A payroll and benefits specialist is part of a company's HR team. They are tasked with managing employee's compensation and benefits programs. They ensure that employee payroll and benefit payment complies with state and federal laws and regulations.

What industry is payroll specialist? ›

Payroll Specialists work as part of a company's accounting and human resources departments to ensure that employees get paid and employers make the appropriate deductions when processing payroll.

What are the 4 basic types of payroll tax? ›

Understanding payroll taxes
  • Social Security – 6.2%
  • Medicare – 1.45%
  • Additional Medicare – 0.9%
  • Unemployment – 6% (0.6% with full credit reduction)

What are the 5 main types of payroll taxes? ›

  • Federal Income Tax. The employee decides how much of each paycheck is taken out on their W-4 form for their federal income taxes. ...
  • State Income Tax. State taxes are like the federal income tax. ...
  • Social Security (FICA) ...
  • Medicare Tax (FICA) ...
  • Insurance Policy Deductions. ...
  • Retirement Deductions.
Feb 12, 2018

What is the highest position in payroll? ›

CPP designation preferred. Regardless of title, this is the most senior payroll position in the organization; the primary task is managing and directing the activities of others.

What is the highest pay scale? ›

Data Scientist is one of the highest paying jobs in India, with the national average salary for a Data Scientist being ₹11,00,000. Experienced data scientists can earn as high as 60-70 lakhs per annum.

What are the highest paying tax jobs? ›

High Paying Tax Jobs
  • Tax Director. Salary range: $121,500-$182,000 per year. ...
  • Senior International Tax Manager. Salary range: $156,500-$179,500 per year. ...
  • Senior Tax Manager. Salary range: $107,500-$150,000 per year. ...
  • International Tax Manager. ...
  • Tax Compliance Manager. ...
  • Corporate Tax Manager. ...
  • Tax Manager. ...
  • Tax Compliance Officer.

What qualifications do you need to be a tax specialist? ›

How to become a tax accountant
  • Gain relevant GCSEs and A levels. ...
  • Get a bachelor's degree in a relevant subject. ...
  • Study the required accounting qualifications. ...
  • Get experience working in the industry. ...
  • Search for a job. ...
  • Pursue further professional development.
Jul 19, 2021

What is the difference between a payroll specialist and a payroll coordinator? ›

In some companies, payroll clerks are called payroll specialists. Payroll coordinators/administrators are responsible for keeping the payroll unit efficient. They oversee the payroll clerk's work, or process payroll if the company does not have payroll clerks/specialists.

What are the two most important types of payroll taxes? ›

An employer generally must withhold social security and Medicare taxes from employees' wages and pay the employer share of these taxes. Social security and Medicare taxes have different rates and only the social security tax has a wage base limit.


1. Payroll Specialist Interview Questions with Answer Examples
(Mock Questions)
2. Webinar for CA Families with HomePay
(Apex Social Group )
3. How To Become a Certified Payroll Specialist (CPS) Explanation Video
4. Top 25 Payroll Manager Interview Questions and Answers for 2022
5. What are your Salary Expectations? | Best Answer (from former CEO)
(The Companies Expert)
6. What is Payroll? Introduction to Payroll | QuickBooks Payroll
Top Articles
Latest Posts
Article information

Author: Amb. Frankie Simonis

Last Updated: 11/09/2022

Views: 6021

Rating: 4.6 / 5 (76 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Amb. Frankie Simonis

Birthday: 1998-02-19

Address: 64841 Delmar Isle, North Wiley, OR 74073

Phone: +17844167847676

Job: Forward IT Agent

Hobby: LARPing, Kitesurfing, Sewing, Digital arts, Sand art, Gardening, Dance

Introduction: My name is Amb. Frankie Simonis, I am a hilarious, enchanting, energetic, cooperative, innocent, cute, joyous person who loves writing and wants to share my knowledge and understanding with you.