Payroll Processing Clerk in New Jersey Career Overview

As a Payroll Processing Clerk in New Jersey, you play a fundamental role in managing and overseeing the payroll functions within an organization. Your responsibilities revolve around accurately processing employee compensation, ensuring timely payments, and maintaining compliance with federal, state, and local labor laws.

Key aspects of your role include:

  • Data Entry and Management: You will handle the input of employee information, including hours worked, overtime, benefits, and deductions. Precision in data entry is essential to avoid discrepancies in payroll.

  • Payroll Calculation: You will compute wages and deductions, ensuring that all adjustments are accurately reflected in employee paychecks. This includes considering taxes, benefits, and other relevant factors.

  • Record Keeping: Maintaining comprehensive payroll records is a significant part of your job. You will be responsible for securely storing payroll files, reports, and employee payment records for compliance and auditing purposes.

  • Communication: You will liaise with employees regarding payroll-related inquiries, such as pay discrepancies or benefit deductions. Clear communication helps to address concerns and improve employee satisfaction.

  • Compliance Monitoring: Your role includes staying informed about changes in labor laws and regulations that impact payroll processes, ensuring that the organization adheres to all legal requirements.

  • Software Proficiency: You will utilize payroll software systems to automate and streamline payroll processes, which helps to enhance accuracy and efficiency. Familiarity with specialized payroll software is often necessary.

Your position as a Payroll Processing Clerk is integral to the financial operations of a company. Accurate payroll processing contributes to employee trust and organizational integrity, making you a key player in the workforce management landscape.

Payroll Processing Clerk Salary in New Jersey

Annual Median: $53,360
Hourly Median: $25.65

Data sourced from Career One Stop, provided by the BLS Occupational Employment and Wage Statistics wage estimates.

Required Education To Become a Payroll Processing Clerk in New Jersey

To become a Payroll Processing Clerk in New Jersey, you are typically expected to have a combination of relevant educational qualifications and training. Here are the degree programs that can prepare you for this career:

  • Accounting: A degree in accounting provides a solid foundation in financial principles, taxation, and audit processes. It equips you with the necessary skills to manage payroll effectively, including maintaining accurate financial records.

  • Accounting Technology and Bookkeeping: This program focuses on the technological aspects of accounting practices as well as fundamental bookkeeping skills. It offers training in software commonly used for payroll processing, which is essential in an office environment.

  • Administrative Assistant and Secretarial Science: A degree in this field emphasizes administrative skills and office procedures. It prepares you to handle various clerical duties associated with payroll processing, such as data entry, document management, and communication within a business setting.

  • Business Administration and Management: This program covers a broad range of business-related topics, including management practices and operational structures. It provides insight into the overall functioning of businesses, which is beneficial when handling payroll for different departments.

  • Human Resources Management and Services: A degree in this area focuses specifically on employee management, including payroll and benefits administration. Training equips you with knowledge of labor laws and regulations, which is crucial for compliance in payroll processing.

In addition to these degree programs, some employers may prefer candidates with relevant certifications or training in payroll processing software and practices.

Best Schools to become a Payroll Processing Clerk in New Jersey 2024

#1Maricopa County

University of Phoenix-Arizona

Phoenix, AZ

In-State Tuition:$9,552
Out-of-State Tuition:$9,552
Admission Rate:N/A
Graduation Rate:18%
Total Enrollment:88,891
#2Merrimack County

Southern New Hampshire University

Manchester, NH

In-State Tuition:$15,000
Out-of-State Tuition:$15,000
Admission Rate:96%
Graduation Rate:41%
Total Enrollment:164,091
#3Salt Lake County

Western Governors University

Salt Lake City, UT

In-State Tuition:$7,404
Out-of-State Tuition:$7,404
Admission Rate:N/A
Graduation Rate:49%
Total Enrollment:156,935
#4El Paso County

Colorado Technical University-Colorado Springs

Colorado Springs, CO

In-State Tuition:$12,036
Out-of-State Tuition:$12,036
Admission Rate:N/A
Graduation Rate:20%
Total Enrollment:24,808
#5Maricopa County

Grand Canyon University

Phoenix, AZ

In-State Tuition:$16,407
Out-of-State Tuition:$16,407
Admission Rate:78%
Graduation Rate:45%
Total Enrollment:101,816
#6Lynchburg City

Liberty University

Lynchburg, VA

In-State Tuition:$15,467
Out-of-State Tuition:$15,467
Admission Rate:99%
Graduation Rate:66%
Total Enrollment:96,709
Payroll Processing Clerk Job Description:
  • Compute, classify, and record numerical data to keep financial records complete.
  • Perform any combination of routine calculating, posting, and verifying duties to obtain primary financial data for use in maintaining accounting records.
  • May also check the accuracy of figures, calculations, and postings pertaining to business transactions recorded by other workers.

Payroll Processing Clerk Required Skills and Competencies in New Jersey

  • Attention to Detail: You must ensure that all data entered is accurate, as even small errors in payroll processing can lead to significant issues for both employees and the organization.

  • Numeracy Skills: A strong understanding of mathematics is essential for calculating wages, deductions, bonuses, and taxes correctly.

  • Analytical Thinking: You should be adept at identifying discrepancies in payroll data and resolving any issues efficiently.

  • Technical Proficiency: Familiarity with payroll software and financial systems is necessary. Being skilled in spreadsheets and database management tools will enhance your efficiency.

  • Organizational Skills: You will need to manage multiple deadlines and ensure that payroll is processed in a timely manner, requiring effective prioritization of tasks.

  • Communication Skills: Clear communication is important for liaising with employees regarding payroll inquiries and working collaboratively with other departments.

  • Problem-Solving Skills: Ability to troubleshoot payroll-related issues swiftly is critical, as this affects employee satisfaction and compliance.

  • Knowledge of Employment Laws: Understanding federal and state labor laws related to wages and hours is vital for ensuring compliance and protecting the organization from potential lawsuits.

  • Confidentiality: You must handle sensitive employee information discreetly. Strong ethical standards are necessary to maintain trust.

  • Time Management: Effectively managing your time will enable you to meet payroll deadlines and handle varying workloads efficiently.

Job Duties for Payroll Processing Clerks

  • Check figures, postings, and documents for correct entry, mathematical accuracy, and proper codes.

  • Comply with federal, state, and company policies, procedures, and regulations.

  • Operate computers programmed with accounting software to record, store, and analyze information.

Technologies and Skills Used by Payroll Processing Clerks

Accounting software

  • Intuit QuickBooks
  • Sage 50 Accounting

Cloud-based data access and sharing software

  • Dropbox
  • Microsoft SharePoint

Enterprise resource planning ERP software

  • Microsoft Dynamics
  • SAP software

Basic Skills

  • Listening to others, not interrupting, and asking good questions
  • Using math to solve problems

Problem Solving

  • Noticing a problem and figuring out the best way to solve it

Job Market and Opportunities for Payroll Processing Clerk in New Jersey

The job market for Payroll Processing Clerks in New Jersey reflects a steady demand, driven by various factors including business growth, regulatory requirements, and technological advancements in payroll systems. As companies continue to expand and adapt to changes in labor laws and tax regulations, the need for skilled payroll professionals remains strong.

  • Demand: Companies of all sizes, from small businesses to large corporations, require payroll processing clerks to ensure accurate and timely payroll management. With an increasing focus on compliance and employee satisfaction, the role of payroll clerks becomes critical in maintaining trust and reliability within a workforce.

  • Growth Potential: The position of Payroll Processing Clerk offers promising growth potential. Many organizations are transitioning to automated payroll systems, which may create additional opportunities for clerks to specialize in these technologies. Furthermore, entry-level positions can serve as a stepping stone for advancement into supervisory roles or related fields such as human resources or compliance.

  • Geographical Hotspots: In New Jersey, certain regions exhibit a higher concentration of job opportunities for Payroll Processing Clerks. Notable areas include:

    • Northern New Jersey: Cities like Newark and Jersey City have a high density of businesses, leading to greater demand for payroll processing services.
    • Central New Jersey: Regions such as Edison and New Brunswick offer a mix of corporate and small business environments, contributing to consistent hiring in this field.
    • South Jersey: Areas like Camden and Cherry Hill, while more suburban, also house many companies needing payroll professionals, as businesses continue to grow in these regions.

Understanding these trends can help you better navigate the job market, identify potential employers, and position yourself as a competitive candidate in New Jersey.

Top Related Careers to Payroll Processing Clerk 2024

Financial Records Specialist
Ledger Verification Clerk
Billing and Invoicing Specialist
Financial Data Entry Clerk

Additional Resources To Help You Become a Payroll Processing Clerk in New Jersey

  • American Payroll Association (APA)
    The APA offers resources for payroll professionals, including educational materials, certification programs, and industry updates.
    Visit APA

  • National Association of Federal Credit Unions (NAFCU)
    NAFCU provides insights into payroll legislation and compliance issues that affect payroll processing in credit unions and other financial institutions.
    Visit NAFCU

  • Society for Human Resource Management (SHRM)
    SHRM includes articles, research, and tools related to payroll management within the broader context of human resources.
    Visit SHRM

  • U.S. Department of Labor (DOL)
    The DOL offers guidelines on federal labor laws that affect payroll processing, wages, and employee rights.
    Visit DOL

  • PayScale
    PayScale provides salary reports and compensation statistics, which are useful for payroll clerks regarding appropriate pay scales and wage benchmarks.
    Visit PayScale

  • IRS Payroll Information
    The Internal Revenue Service provides resources and forms necessary for payroll processing, including information on payroll taxes and compliance.
    Visit IRS

  • The Payroll Book: A Guide for Small Business and Startups
    This book offers practical advice on payroll processing, taxes, and compliance, particularly valuable for those new to the field. Available for purchase on major book retailers.
    Find on Amazon

  • LinkedIn Learning
    LinkedIn Learning offers online courses that cover various aspects of payroll processing, including software training and compliance topics.
    Visit LinkedIn Learning

  • State of New Jersey Department of Labor and Workforce Development
    This state-specific resource provides information on labor laws, employee rights, and guidelines relevant to payroll processing in New Jersey.
    Visit NJ DOL

  • Local Networking Groups
    Consider joining local chapters of professional organizations or networking groups focused on finance and payroll to connect with industry professionals and access additional resources. Search for groups on platforms like Meetup or LinkedIn.

Frequently Asked Questions (FAQs) About Payroll Processing Clerk in New Jersey

  • What are the primary responsibilities of a Payroll Processing Clerk?
    As a Payroll Processing Clerk, your main duties include collecting and processing employee timecards, ensuring accuracy in payroll calculations, managing employee records, preparing and distributing paychecks, and maintaining compliance with labor regulations.

  • What skills are essential for a Payroll Processing Clerk?
    You will need strong numerical and analytical skills, attention to detail, proficiency with payroll software and spreadsheets, good communication skills, and a solid understanding of payroll-related laws and regulations.

  • What education is required to become a Payroll Processing Clerk?
    A high school diploma or equivalent is typically the minimum requirement, but many employers prefer candidates with an associate degree in accounting, finance, or a related field. Additional certifications in payroll can also enhance your qualifications.

  • Is prior experience necessary for this role?
    While prior experience in payroll processing or a related field is beneficial, many entry-level positions may not require it. Employers often provide on-the-job training for those new to the field.

  • What software or tools do Payroll Processing Clerks commonly use?
    You will frequently use payroll software such as ADP, Paychex, and QuickBooks, as well as spreadsheet applications like Microsoft Excel to manage and analyze payroll data.

  • What is the average salary for a Payroll Processing Clerk in New Jersey?
    As of recent data, the average salary for a Payroll Processing Clerk in New Jersey ranges between $45,000 and $60,000 annually, depending on experience and the size of the organization.

  • What are the typical work hours for a Payroll Processing Clerk?
    Most Payroll Processing Clerks work full-time, typically during standard business hours. However, you may need to work overtime during payroll closing periods or when preparing financial reports.

  • Are there opportunities for advancement in this career?
    Yes, with experience and additional education or certifications, you may advance to roles such as Payroll Manager, Payroll Supervisor, or other positions in human resources and finance.

  • What are the most common challenges faced by Payroll Processing Clerks?
    Common challenges include ensuring compliance with ever-changing tax laws, managing tight deadlines during payroll periods, and addressing discrepancies in employee hours or pay rates.

  • How can I stay current with updates in payroll laws and regulations?
    To remain informed, you can participate in professional organizations, attend workshops or webinars, subscribe to industry publications, and take continuing education courses focused on payroll and human resources.

  • Is it important to have knowledge of labor laws for this job?
    Yes, a good understanding of labor laws, including wage and hour regulations, tax withholding requirements, and employee benefits, is essential to ensure compliance and avoid legal issues in payroll processing.