A payroll manager works in the finance or accounting division of a company. He or she is in charge of all the aspects that have to do with payroll. This concept translates into the fact that they are the ones paying all the employees. Therefore, what skills must a payroll manager possess so that he or she can provide financial security for everyone?
What Is a Payroll Manager and What Are His Responsibilities?
As noted above, the payroll manager is the one who ensures that all payments in wages and salaries to employees are accurate and on time. They also deduct the appropriate amounts of the payments so that the company is in accordance with the law and local regulations. They can make some payments to benefits as well, and honor garnishment requests.
The payroll manager is also the one who supervises all the other employees who work in the payroll department and provides them with training and mentorship. They help the human resources in dealing with new hires and assessing just what amount of money they should receive.
The same goes for any changes an employee undertakes. If an individual working for a company receives a promotion, transfer or his contract has ended, the payroll manager will adjust his salary according to his new position or will issue him the final paycheck.
Payroll Manager Responsibilities List
Here are some more of a payroll manager’s responsibilities within a company.
- Administrating budget cuts and increases.
- Managing other financial items, such as retirement funds, investments, and stocks.
- Acting as a support to all the employees for whatever question they might have regarding their financial situation within the company.
- Providing crucial information to the management and human resources departments when they want to promote an employee or move them to another division.
- Keeping in touch with accounting.
- Reviewing employees’ contracts and suggesting changes or improvements.
- Preparing and submitting financial reports to management on a regular basis.
- Calculating and paying taxes, benefits, and vacation accruals.
- Establish wide-ranging procedures and processes for payroll.
- Calculating and verifying salaries, wages, bonuses, overtime, and payment for the termination of a contract.
- Engaging and conducting, if necessary, audit procedures, both internal and external. He or she must afterward develop a formal process through which they can communicate the results to the upper management. Depending on the results of the audit procedure, the payroll manager must suggest what measures the company must take to improve its financial and legal situation.
What Skills Should a Good Payroll Manager Posses?
As you can well see from all the responsibilities they have, being a payroll manager is not an easy thing to accomplish. Here are the skills he or she must possess to prove excellent at their job.
1. Outstanding Mathematical Skills
If you want to become a payroll manager, you must be at ease when working with numbers. Keep in mind that this doesn’t mean just basic mathematical calculations. You must also have a particular mindset built for figures. It will allow you to tell if anything is out of sorts by just glancing for a few seconds at a spreadsheet or a table. In other words, you must be able to tell if something doesn’t quite add up there, pun intended.
While it is true that you will mostly be working with payroll software, you need to understand that relying solely on those pieces of digital tools is dangerous. When it comes to accounting and people’s money, you can leave nothing in the hands of fate. There can be no mistakes there. Not only for the employee but yourself and the company as well. If there are any mishaps, that particular employee might file a complaint with the authorities against you personally or the business.
2. A Keen Eye for Detail
This skill is crucial for the same reason we mentioned above. Given just how significant your job is, any error, no matter how tiny, can have some positively damaging consequences. Here’s a short example. It’s one thing to authorize payment for $20, 000 and an entirely different one to allow your company to pay $200, 000.
When you’re exhausted, especially at the end of the day, these figures might seem entirely similar to you. Leaving them unnoticed or confusing them could be truly catastrophic. If you leave them unnoticed, that is. Because if you do happen to have that keen eye for detail, as we were detailing above, you will spot the issue right away and fix it before anything bad happens.
3. Being Very Proficient with Payroll Software
No matter how good you are with numbers, every employer nowadays will want you to master payroll software like it’s your second nature. This idea means that your IT skills are crucial for securing a job as a payroll manager.
If we’re talking about a basic level, then you have to be aware that you must know how to use software packages such as Microsoft Excel and Word. However, when it comes to more advanced tasks, you will have to use some other, more sophisticated accounting tools.
4. Being Able to Perform Very Well Under Pressure
As you, probably, already know, working as a payroll manager means a lot of pressure to you. Not only in regards to being correct and accurate with money and resources but also about working as rapidly as you can. Therefore, it is vital that you can cope with all of these factors. You have to reduce the risk to a minimum, even if that means you are working longer hours or at a speed of light.
Looking at things in this way will then determine you to ask yourself if you are capable of doing this job or not. Can you handle long and overly-complicated schedules as well as tight deadlines? If the answer is yes, congratulations! You are ready to become a payroll manager.
Lastly, here is a tip for all you out there who dream of a job as a payroll manager. Always be reliable and honest. You must strive to have unimpeachable trustworthiness and absolute dependability. Think about the fact that you will be handling a lot of confidential information about the employees, your boss, and the company as a whole and you will understand just how important these factors really are.