34 Payroll Specialist Interview Questions (with Answers)

Payroll Specialist Interview Questions

1.

What courses did you enjoy most while completing your accounting/payroll education?

2.

Describe a typical payroll day in your current position.

3.

What experience do you have implementing a new payroll system?

4.

What information do you need to properly set up an employee into a payroll system?

5. Describe to me any payroll process that you have developed or revised. Think of a payroll-related problem you helped solve. Give the interviewer a brief overview of the problem that was brought to your attention. Discuss the action steps you took to address the issue and any processes you put in place to ensure the problem did not occur again in the future. Explain why you chose this revision and be sure to include the result of your actions. If you are new to your career, think of a problem you faced in school, a team sport, or a volunteer activity. Talk about how you contributed to a solution. Example #1: "While working for Company ABC as a Payroll Assistant, I realized that the timesheets were not populating correctly, and this was resulting in a problem with the calculations of the working hours for the employees. I solicited the help of the finance and IT department, and we worked together to troubleshoot the issue. We were able to repair a bug in the timesheet system, which resulted in well-sorted and accurate data for the employees' logged hours from then on." Example #2: "During my time as Payroll Manager for Company ABC, the organization was growing rapidly. As a result, the payroll department had to reevaluate the entire payroll process. At first, we were using Paychex and calling in the hours each week. As our locations expanded, our headcount increased, and our compensation packages became more complex and varied, we decided to upgrade our payroll technology and process. I led the project, pricing and negotiating a new contract with ADP. We also changed over our time clock system from manual to electronic to eliminate time and errors. It was a significant improvement to the overall process which solved a lot of payroll issues moving forward." Here is an anonymous answer example: "there were some inaccuracy issues with our system when we processed payroll, which affected the employee’s check. i realized that if the totals didn't match, then the error lay in the parts of the sum. i suggested that we customize a report that compared specific elements such as the hours entered and other relevant components with the timesheet to reconcile the data. we would implement a quick glance at it after completing payroll entry to ensure accuracy. this eliminated inadvertent errors immediately." In response to the anonymous answer example, here is what Rachelle Enns said: Good thinking on your part! It would be great to include more detail in your story surrounding how you came to your idea. This way, you can take the interviewer through your problem-solving thought process.6. Each of our buildings has a designated payroll timekeeper that reports biweekly. Two reports are late. How would you approach this situation? The way you answer this scenario-based question will help the interviewer gauge your level of expertise and learn more about how you react when roadblocks occur in the workplace. Show that you understand mistakes will occasionally happen. If it is not a recurring issue, you may simply call the responsible party and ensure the missing information is provided as soon as possible. If the issue becomes ongoing, perhaps you would schedule a face-to-face meeting to talk through the problem. Display that you are a strong communicator by expressing the way you would approach this conversation. For instance, you might let this person know that their actions are impacting the company. You might also create an action plan for change that included consistent follow-ups until the behavior was corrected. Inform the interviewer that you would work with the individual to put a plan in place to eliminate future problems, and if the issue was not resolved, you would escalate the issue appropriately. Example #1: "If this incident was the first time, I would call the person in charge and make sure that the reports were sent to me before any further delays occurred. I would thank them ahead of time for ensuring this situation did not happen again. If this scenario became a regular occurrence, I would arrange a face-to-face meeting with the timekeeper to find out why the problem is recurring. After identifying the root cause of the issue, I would collaborate with my co-worker to formulate a plan so that it didn't happen in the future. If the problem persisted, I would contact the appropriate supervisor and work toward a longer-lasting solution." Example #2: "In this situation, I would reach as soon as the reports were late and ask some open-ended questions, to see if the issue was an isolated incident. If the situation happened again, I would ask to meet with the person to make sure there are no roadblocks such as training, or timing. If the situation called for it, I would invite the associate to cross-train and learn what the reports are used for on the other end. This knowledge might broaden their understanding of the process and the impact a late report can have on other departments and stages of payroll. If the behavior continued, I would take measures to initiate a performance improvement plan."7. What are your salary expectation? In many states, it is now illegal for hiring authorities to ask about your current earnings. For that reason, a vague question regarding your expectations will give the interviewer a solid idea of what you are hoping to earn without crossing any ethical lines. Typically, when you change jobs, you want to see an increase in wages. Most interviewers aim for a 7-15% increase for each time they change jobs. This range offers room for negotiations with the new company. This percentage increase reflects economic inflation, unique skills you bring from the last time you joined an organization, and an increase in responsibilities. Salary is an important conversation to have, and now is the time to share your desires and expectations openly. Be open, and honest. Transparency is the best choice when salary-based questions arise. If you are newer to your career, or the area, and are unsure of what a fair ask may be, there are many reliable salary calculators available online. If you do not have salary expectations, it's time to do your research. The more prepared you are with data on fair pay for the market the more the interviewer will respect you and your stance. Example #1: "I am looking for growth in terms of responsibilities as well as in monetary terms. Through my research I see that the market average for this role, for someone with my years of experience ranges between $X nad $X per year. I am also interested in discussing your overall compensation offering in addition to the base salary." Example #2: "As I am new to my career and this industry, I am happy to negotiate my earnings based on your typical salary for this role. From my research, I see that the average Junior Payroll Administrator in the Chicago area earns an annual salary in the $45K to $50K range. I am looking for compensation comparable to the responsibilities of the role. I trust the overall compensation package will be fair, including base salary and other employee benefits. Could you share with me the compensation plan for this role?"8. How do you remain up-to-date on payroll rules and techniques? The interviewer wants to know that you are diligent with remaining in-the-know of payroll rules, laws, and techniques to optimize your time and efficiency. Perhaps you receive email updates from an HR governing body that shares updates, tips, and tricks. Maybe your payroll vendor keeps you in tune with new rules and techniques on their homepage or your dashboard. Or, perhaps you attend payroll-related conferences, seminars, and webinars. Be sure to mention any professional payroll organizations you regularly participate in or hold a membership with. Finally, mention that you network with other payroll professionals in or outside of your company to see what new techniques they are using. Example #1: "I read a few reputable blogs related to payroll, HR, and compensation law. I also follow a few forums online that hosts people in the payroll industry that I trust. Once per year, my current employer arranges for me to attend a payroll-related conference. When I return from these conferences, I hold a weeks' worth of lunch 'n learns to pass my knowledge on to the department. It's very important to me that I remain in-the-know of payroll-related law and strategies so that I am as accurate and efficient as possible for my employer." Example #2: "Remaining in-the-know is a critical part of maintaining compliance and staying current on industry changes and news. I am an active member of multiple payroll associations such as A, B, and C. I read the news every day and am connected with the IRS/DOL on any changes that may impact my work and the efforts of my team." Here is an anonymous answer example: "receiving daily emails from different agencies regarding updates on payroll regulations definitely help. attending payroll-related seminars and conferences is another good way of staying in tune with regulatory developments. furthermore, consistently checking irs/dol websites, doing online research, and networking with other payroll professionals prove to be good supplementary practices." In response to the anonymous answer example, here is what Rachelle Enns said: Good answer! You are clearly diligent in remaining updated on payroll rules and techniques. It's terrific that you rely on a range of helpful and reputable sources for your information.9. What is the largest payroll run you have been in charge of? Discuss the largest payroll run you have been in charge of, including details such as dollar amount and total employee headcount. Be sure to mention that you understand how important it is to maintain a high level of detail when working with large sums of money. The interviewer wants assurance that you can manage their payroll volume so be sure to include a qualifying statement at the end of your response. Example #1: "I have handled payroll runs for medium and large size companies. The largest number of employees I have processed payroll for was 557, with the average run amounting to just under $3M. Thanks to my experience working in a variety of companies, I understand the need for accuracy and precision no matter the dollar amounts I am working with. Rest assured I will be just as careful and accurate with 5 employees as I would with 5,000." Example #2: "In my previous role, I was responsible for a $60M weekly payroll for over 20,000 employees worldwide. There were many variables to manage with different locations and laws in place, depending on the region. I am confident that this extensive experience will ensure my success with your organization, considering you have employees across the globe." Here is an anonymous answer example: "the largest payroll i have been in charge of was $100,000 for a weekly payroll belonging to a travel marketing agency with a fluctuating headcount of around 100 employees. this was only one of 50+ companies that i oversaw payroll for, and they each vary in industry, city, and size. i had to account for each respective company's local regulations. with this experience, i understand the need for precision with money at stake." In response to the anonymous answer example, here is what Rachelle Enns said: You would certainly have to be diligent with your work's quality, being responsible for 50 companies! Good answer - it's clear that you take pride in your work.10. If an employee called in with a payroll complaint, how would you handle it? The interviewer wants to see that you express empathy and understand how concerning payroll challenges are for employees. They also want to know that you can handle the issue through critical problem-solving. Perhaps you take detailed notes of the employee's complaint and then get to work solving the issue. Maybe you talk through the issue together so that you can solve the payroll problem right away. Sometimes payroll issues need time to figure out. In these instances, inform the interviewer that you express your apologies to the employee and provide an approximate timeline for a solution. Example #1: "As a Payroll Specialist, I am a service provider and the employees that I serve always remain one of my primary areas of focus. For that reason, any valid payroll complaint, such as a missing direct deposit, should be dealt with immediately. When I receive a payroll complaint, my first reaction is to apologize and empathize. Then, I look into the matter ASAP. I take detailed notes of the situation and begin to troubleshoot. Often, the issue comes down to a simple coding error, and I can quickly repair the issue. However, there are times when I need to dig deeper. In that case, I keep the employee updated on the progress and offer a written cheque to supplement their financial concerns until I can resolve their payroll issue." Example #2: "For example: "If an employee reached out with a payroll concern I would listen to the concern, research the issue and find a resolution as soon as possible. I would also note the payroll error and inform the appropriate manager. Payroll concerns are sensitive since employees are relying on their paycheck to be accurate and timely. For that reason, I believe any employee's payroll-related concerns should be resolved within 24 business hours." Here is an anonymous answer example: "i would put myself in the employee's shoes to be as empathetic as possible, listen carefully, and apologize that the issue occurred. i would take detailed notes of what happened and assure them that we would investigate and resolve it as soon as possible. i'd give them a timeframe of when it would be resolved and when they would hear from me. as i resolve the issue, i would document the resolution process to prevent future reoccurrences. then i would reach out to inform them it has been resolved, to apologize once more, and to assure them it would never happen again." In response to the anonymous answer example, here is what Rachelle Enns said: It seems you are highly organized and keen on process, which is fabulous news for a payroll specialist :) You walk through this answer with ease, and your professionalism shines through.11. What are the most important attributes a Payroll Specialist should have? The interviewer wants to see that you understand the attributes required to succeed in this role and with this company. Most of all, they are seeking assurance that you possess these attributes yourself. Take a look at the job description before heading to the interview, and you will see what attributes are most important to the role. These characteristics will likely be listed in the 'Qualifications' section of the job posting. You will likely see mention of attributes like great attention to detail, strong verbal and written communication skills, robust interpersonal skills, and the ability to solve complex problems. Discuss what you believe to be the most important attributes for a Payroll Specialist to possess and why. Then, provide evidence that you will bring these characteristics to the workplace. Example #1: "I believe that attention to detail, accuracy, and precision along with commendable communication skills are some of the most important attributes a Payroll Specialist should possess. I put attention to detail and accuracy at the highest importance. For instance, when I (tell a brief story of a time when your attention to detail directly impacted the workplace). Since the beginning of my career, I have worked hard to ensure that my written and verbal communication is spot on. For instance, I...(give details of how you have worked to perfect your communication skills). With these attributes, I can avoid mistakes, which in this profession is a top priority." Example #2: "I understand that the attibutes the hiring company is looking for, and some of the most important in this role overall include strong interpersonal skills and the ability to work cross-departmentally. I am able to get along with many personalities and work closely with various groups. For instance, when I was completing my internship, I (tell a brief story of a time when your interpersonal skills shined through). Throughout my time in university, I worked hard to ensure that I could work across various groups and with different professors. This skill will come through very well when I liaise between various department. I look forward to showing this organization these attributes, and more, in action."12. What have you done to improve your written and verbal communication skills? The interviewer wants to know that you put effort into enhancing your communication, regardless of your professional experience level. Discuss your preferred methods for honing your verbal and written communication skills. You can also discuss how you utilize your new skills in the workplace. If you have noticed a marked improvement from your efforts, be sure to mention this improvement. Example #1: "To improve my verbal communication skills, I attend meetings with a group of international residents in the county and have discussions with them over several topics. I have also been an active member of a photography club where we share information about new techniques and tricks for improving our skills. Apart from that, I attend webinars related to payroll that improve my language skills while keeping me updated on important industry and regulatory changes." Example #2: "Clear communication has been one of my keys to success during school and my recent internship. To continually improve, I use mixed written communication methods while connecting with my leaders and peers. To enhance my verbal communication skills, I recently joined Toastmasters. So far, I have gained a lot of confidence when presenting to small groups."13. What are your future plans with the company? The interviewer wants to know about your career goals and aspirations for a title promotion over time. Be realistic in your timeline for achieving growth. Show enthusiasm for your work as a Payroll Specialist by keeping the bulk of your answer focused on the way you plan to make an impact in this particular job. Example #1: "I am excited about the opportunity to work as a Payroll Specialist for your organization. I believe that this will be a great learning opportunity for me. Some years down the line, I want to earn my way into a team lead or payroll supervisory role; however, I have a lot of experience to gain in this role in the meantime." Example #2: "It is important to me that I grow personally and professionally, regardless of potential title promotions. In this Payroll Specialist role, I welcome the opportunity to learn and thrive while eventually taking on a leadership position as I prove my capabilities. Most of all, I plan to add value and build meaningful relationships that serve the greater good of the company."14. Give me examples of the payroll reports you have prepared. Be prepared with a list of reports that you have prepared, and be ready to provide a high-level overview of the data you understand to be found in these reports. The interviewer wants to see that you have experience preparing reports and that you understand the importance of this data. Talk to the interviewer about the ways you can manipulate data within your payroll system to generate the financial reports your company needs. Be sure to mention the systems and formats with which you are familiar such as Word, Excel, or Adobe. Example #1: "I am well-versed in preparing income statements, new hire reports, promotion reports, deduction reports, leave/absentee reports, and wage types. When necessary, I can manipulate all data provided to me and create reports in any format. Are there any other specifics I can provide you with regarding my payroll reporting experience?" Example #2: "Reports are a large part of streamlining and ensuring the accuracy of the payroll process. I run weekly auditing reports, total time and payments reports, and financial reports to provide my company with the knowledge they need. Each payroll run, I audit the inputs and track the organization's paid time off updates. The internal reporting tool we use is great because I can consistently come up with custom reports to meet the needs of my employer." Here is an anonymous answer example: "i have primarily used software called pensoft to generate and customize almost every report crucial to payroll, including but not limited to personnel reports, leave reports, earnings reports, deductions reports, summary reports, accuracy reports, etc. i am also experienced in manipulating data within the system to produce reports in other formats such as word and excel. a lot of payroll software function the same on the basic level; thus, my experience will be transferrable." In response to the anonymous answer example, here is what Rachelle Enns said: Wonderful response! You are very specific and sound confident that your experiences and skills will transfer well to this new role.15. What is a general ledger? This basic question will allow the interviewer to gauge your level of experience and knowledge in payroll. It will also show the interviewer your ability to explain a payroll-related term in a way that anyone can understand. People can clearly explain concepts they genuinely understand, after all! Your response should be straightforward and to the point. If you want to add a little pizazz into your answer, you can provide an example of your professional experience working with general ledgers. Example #1: "A general ledger or G/L is used by businesses to track financial transactions by assets, liabilities, equity, revenue, and expenses. In my current position, I work with general ledgers daily. For instance, I (give an example of a time when your knowledge of G/L use benefitted your employer)." Example #2: "While completing my Payroll certification, I learned that a general ledger is the main accounting record for a company or organization. It ties into the profit and loss and accounts for all expenses or monies earned across the board. It is an essential financial tool for a business and a Payroll Specialist."16. How would you familiarize yourself with our payroll system? The interviewer wants to see that you are a go-getter and a self-starter. Tell the interviewer that you would start with independent learning, perhaps by clicking through the system to understand what it looks like or taking in some online tutorials. Perhaps you would visit the vendor's website to see if any how-to lessons are offered. Whatever your approach, show the hiring company that you are an enthusiastic go-getter who will jump on board, ready to learn. Example #1: "I have always believed in learning by doing. Being tech-savvy certainly helps a lot. I plan to familiarize myself with the company's system by watching online tutorials before my first day. I will also absorb the training I receive once hired. I will be sure to find solutions to any obstacles that I come across and I will ask questions of my more experienced co-workers or my supervisor, when appropriate." Example #2: "Utilizing my 12 years of experience in payroll pricing, testing, and evaluation of many major payroll providers, it will be a seamless transition to familiarize myself with your payroll system. I understand that companies typically customize their payroll system, so it will only be a matter of clicking around to learn how the system works for this organization. I am familiar with many payroll systems such as Workday, ADP, Paychex, Jupiter, and Quickbooks. Could you share with me some details of the systems you use and how they have been customized to suit Company XYZ?"17. What is a fiscal year? This basic question will allow the interviewer to gauge your level of experience and knowledge in payroll. It will also show the interviewer your ability to explain an accounting-related term in a way that anyone can understand. People can clearly explain concepts they genuinely understand, after all! Your response should be straightforward and to the point. Example #1: "A fiscal year is a 12-month cycle established by each organization for accounting and financial purposes. For instance, an organization may choose to begin their fiscal year on June 1st and end the fiscal year on the last day of May of the following calendar year." Example #2: "While completing my accounting degree, I learned that a fiscal year is the accounting period for a company. Sometimes this is the calendar year. Other times, companies operate on a different cycle such as a September to August fiscal year."18. How does higher management benefit from payroll reports? Tell the interviewer that senior leadership needs payroll reports as part of their role to understand expenses regarding compensation and benefits and payroll taxes. At the end of the day, their job is to ensure the organization is secure financially. There is a good chance that payroll expenses will be one of the highest expenses the organization occurs regularly. To help them stay up-to-date on how payroll expenses affect the organization and ensure they have all of the necessary information to make sound financial decisions, payroll reports are necessary. Example #1: "Higher management is responsible for ensuring the financial security of the company. Payroll expenses are among the highest expenses an organization incurs. For that reason, higher management will benefit from staying up-to-date on payroll expenses and how they are impacting the organization financially. Higher management can utilize payroll reports to ensuring that they have the necessary information to make sound financial decisions." Example #2: "Higher management can benefit from payroll reports by using the reported data in their forecasting for future staffing and to help make other critical financial decisions. These reports can also be leveraged if the management team is presenting to the board or other stakeholders. Higher management teams can also include payroll reports when reviewing the company's operating expenses and net income."19. Why are you interested in this Payroll Specialist position? It is a good idea to tell the interviewer that you enjoy being in a role that allows you to analyze information and be highly detail-oriented. Perhaps you enjoy being behind the scenes working with numbers, and you like that you are working in a vital role that directly impacts others' financial security. Keep in mind that the interviewer wants to see evidence that you have excitement for the job and you are ready to make a direct contribution by utilizing your specific talents. Example #1: "Since starting my career in the field of payroll, I have enjoyed working with complex numbers and improving the efficiency of numerous departments. In addition to what I have heard about your organization, I have also done my own research, and I have great interest and respect for the industry you serve and would love to utilize my knowledge and learn and grow my skills with the organization." Example #2: "I am interested in this Payroll Specialist position for many reasons. The most personal and compelling are [give one or two reasons why this job is a stand-out opportunity]. I have spent a lot of time researching and getting to know your company and [discuss your findings with enthusiasm]. This partnership would be mutually beneficial in the sense that [discuss how the findings tie to your career goals]. Should you choose to hire me, I will contribute to [the original highlights you mentioned in the beginning] by [offer details on how you will contribute]."20. How do you ensure that payroll is paid correctly and on time? The interviewer wants to know that you will handle their volume and the unique needs of their organization. Show that you will give careful thought to their unique payroll set-up and that you will take the time to learn the ins and outs of their process. You can discuss how you will utilize the notes feature in your payroll software to document any special requirements. Example #1: "I use Excel and take extensive notes while doing my job. I keep my work organized and plan steps in advance. I have worked around special pay items to make sure that employees are paid correctly and on time. Checklists are an effective practice and I have found they work well in measuring an efficient payroll each cycle. I will create checklist items for any unique contract or special payment terms. Then, I double check to make sure the inputs are accurate before each payroll cycle." Example #2: "One of the most effective practices I have found works well in measuring an efficient payroll each cycle is utilizing checklists. Simply put, I will create checklist items for each special contract or unique payment terms to ensure we are double or triple checking the inputs to measure accuracy each cycle."21. Would you ever pay an employee through accounts payable rather than payroll? This may be a challenging or 'trick' question since employees should be paid through payroll; however, a contractor can be paid through accounts payable (A/P) as a way for the company to write their fee off as an expense. Tell the interviewer that you understand the different circumstances that may arise when considering A/P to pay someone for their work or services. Example #1: "From my experience, I have only paid contractors through A/P and permanent employees through a regular payroll cycle. There are certain labor expenses that are better handled through accounts payable than through payroll. In this particular scenario, I would ask a range of questions before running a labor-related expense through A/P rather than a usual payroll run." Example #2: "There are several times when I have used A/P to compensate a temporary or contracted associate versus utilizing payroll. All of our contractors on 1099s are compensated through A/P. Anytime we hire a vendor to do work for our organization, we invoice and pay through accounting, not payroll."22. Have you had responsibility for state and federal tax payments? The interviewer wants an overview of your experience with filing quarterly taxes, year-end taxes, and any other tax-related tasks pertinent to your work as a Payroll Specialist. Discuss how you file tax payments either electronically or by mail. Finally, discuss how you locate payment amounts. Most likely, these amounts come from your payroll software. Example #1: "In the last organization I worked for, I was responsible for reporting income and employment taxes withheld from the employees on an Employer's Quarterly Federal Tax Return (Form 941). Then, I deposited these taxes in full to an authorized bank. I was also responsible for filing the FUTA return annually and depositing the related tax funds." Example #2: "Yes, I have been responsible for state and federal tax payments, in collaboration with my employers' tax accountants and CPAs. As the liaison for payroll with Company ABC, I have taken on the responsibility of ensuring company compliance for the past ten years, ensuring we remain in compliance with all state and federal tax laws."23. Do you plan to open up your own accounting or payroll firm? The interviewer wants to know if you view this job opportunity as a stepping stone to your own business endeavors or if you plan to stay with their organization for the long term. Show the employer that you are excited about this opportunity, and you look forward to being on their team for the foreseeable future. Display enthusiasm to learn and grow with the organization, and mention that you are grateful for the opportunity to discuss the Payroll Specialist position. Example #1: "I have been looking for an opportunity to learn and grow with a larger organization that will offer me the chance to prepare payroll reconciliations at a larger scale. I work well with a diverse team of experts, so, for that reason, owning my own consultancy or working independently does not interest me. I am truly excited about this opportunity with Company XYZ, and plan on growing with your esteemed team for many more years to come." Example #2: "I am new to my career as a Payroll Specialist and it's important to me that I contribute to a team for at least ten years before considering any independent work. It's essential that I contribute to a team while learning and growing from superiors who can teach me the foundations of this role. Right now, and far into the future, it is my greatest interest to be part of a talented team like this one."24. Have you performed bookkeeping for small businesses? If so, walk me through your experience. The interviewer wants you to walk them through your experience working within or consulting as a bookkeeper for a small business. If you have this experience, share how many employees were on staff, the industry of the company, and how you supported their bookkeeping or accounting needs. If you have experience in both small and large work environments, mention any key differences you recognize between small businesses and larger organizations. Example #1: "I started my career with a small organization, where I was required to perform basic bookkeeping tasks. I was responsible for keeping employee hours and retaining documents for transactions. When I moved to a bigger organization, the bookkeeping tasks were handled by my coworker; however, I continued to keep track of employee- transactions in my department." Example #2: "Near the beginning of my career, I worked as an independent bookkeeper for a smaller, privately-owned dental clinic. I maintained ledgers, recorded transactions, and produced a variety of financial reports for the primary accountant. This experience helped me to gain a solid understanding of the foundations of accounting and payroll while teaching me a great deal about the importance of organization and attention to detail."25. Describe your familiarity with the administration of 403b and 457 plans. The interviewer wants to hear about your experience administering 403b plans as well as 457 plans. Share roughly how many employees you have participating in each type of plan, how you utilize your vendor's website to administer the plans, any audits you have been through with each plan, and any additional details that will add value. If you do not have any experience with 403b or 457 plans, tell the employer that although you do not possess this experience, you understand the purpose of these plans. Example #1: "I understand that a 403b is a special retirement plan typically seen in public schools, tax-exempt organizations, and churches. Alternately, 457 plans are typically seen for governmental employees and independent contractors. The 457 is unique because there is no tax penalty for early withdrawals, and independent contractors may participate. I have a strong level of familiarity with each type of plan." Example #2: "While completing my accounting degree, I briefly learned about 403b and 457 plans; however, I could certainly deepen my knowledge on these topics. During my recent internship, together with the financial controller, I helped with the administration of 403b and 457 plans. We managed the plan contributions with the carrier and our deductions on the payroll end. I look forward to learning more about the administration of these plans with Company XYZ."26. Tell me about the payroll forecasting you have been responsible for. The interviewer wants to understand details around the payroll forecasting you have completed, including how often you have supplied forecasts and who has typically requested the forecasts. Provide details around a recent payroll forecast as a way to support your work through an example. Mention how you gathered your data, what software you utilized for pulling the information, and how you created your projections. Finally, be sure to include who the data was presented to and how you presented it (Excel, Word, email, in-person presentation). Example #1: "When I was working for Company ABC, the company's finance department requested an estimate of the company's yearly expenses. At the time, I was responsible for providing the organizations' yearly payroll forecast. For the past 4 years, I have been using the yearly employee salary data and forecasts regarding future hires required by other departments. For this provision, I use Excel along with our company's internal system for payroll calculations." Example #2: "My payroll forecasting experience extends to my formal education and my current internship. At Company ABC, we utilize our reporting system to forecast weekly payroll funds, hours, and various payments, taking into account the financial cycle and compensation bonus packages."27. What cost-cutting measure have you been in charge of implementing? The interviewer wants you to discuss the largest, most impressive, cost-cutting measure you have been in charge of. Start by discussing who identified the initiative and how you were selected to lead the implementation. Then, provide a brief overview of the cost-cutting measure, and give an overview of the steps you took during the implementation. Be sure to mention the positive result that was generated following the implementation. Example #1: "While working at Company ABC, the Payroll Director asked us to look for opportunities to cut costs associated with running payroll. The first thing I did was stop using paper whenever possible. I introduced a new digital process and started to scan copies rather than fax or print them. My co-workers followed suit, and this action reduced paper-related expenses by 49% in just one month. The Payroll Director applauded our efforts, and other departments took notice, working to implement these actions, as well." Example #2: "I have taken on many cost-cutting measures throughout my career. As a payroll professional and a keen 'numbers person,' I am always looking at costs and thinking of creative ways to generate savings for my employer. For instance, I recently realized that it made sense to bundle our payroll and benefits providers into one solution, saving us $4.50 per employee each payroll cycle. In an organization made up of over 5,000 associates, this will save the company hundreds of thousands of dollars over time." Here is an anonymous answer example: "our company was using an expensive courier at the time, which cut into our profit margin. i proposed to the boss that we switch to a less costly courier for payroll delivery, which ultimately improved our profit margin. that year, i was offered a 30% share of the net profit increase due to this and other profit-boosting implementations." In response to the anonymous answer example, here is what Rachelle Enns said: Good for you! It must have felt very rewarding for you to receive this recognition and be offered a portion of the company's savings.28. Walk me through your payroll experience. This is a comprehensive and very direct question. The key is to provide a high-level overview of your experience. You will want to walk the interviewer through your resume, pointing out highlights of your work and accomplishments that you know relate most to this new opportunity. Tell the interviewer how many years you have been working in a payroll function, the systems you have used, how many employees you have conducted payroll for, the industries you have work in, and any other details that you believe the hiring company will deem important. Be sure to highlight any promotions and accolades you have received along the way. Example #1: "I have been working in a payroll function for the past 20 years. I started my journey as an intern and am currently employed as a Senior Payroll Manager after receiving several promotions for my performance. During this time, I have primarily used ADP, QuickBooks, Sage, and Paychex. I have handled payroll runs for 50 to 5,000 employees. At Company ABC, I implemented a new timesheet system for recording employee hours which saved the organization thousands of dollars in time and savings. I am comfortable taking control of payroll and troubleshooting issues that arise. I understand that your organization is looking for someone who can jump in, create efficiencies, and find opportunities for cost savings. This is one of my areas of strength and I look forward to putting my experience to work for this organization." Example #2: "I started working in payroll 8 years ago in the automotive industry and then moving to the manufacturing industry. Over these years I worked with Paychex and ADP. I have inputted, managed, audited, and streamlined the payroll process for up to 3,000 employees and have managed payroll runs upwards of $30,000. Today, my involvement spans from running payroll, training junior payroll clerks on the front end to reconciling the financials with the accounting team on the back end." Here is an anonymous answer example: "i am a former payroll manager with three years of experience in a wide range of areas in payroll, including but not limited to payroll production/maintenance and management, employment tax depositing/reporting, and regulation compliance. i have primarily used pensoft, but i am familiar with adp workforce now and quickbooks. working for a payroll provider, i have conducted payroll for a total estimate of 1,000 employees and have had 4 people in my department, including me. i was promoted to payroll supervisor within 8 months and payroll manager within 14 months of my job." In response to the anonymous answer example, here is what Rachelle Enns said: Excellent overview! You did a great job walking through your career highlights and successes. This answer is full of qualifying statements, which is a smart approach.29. How did you get started in a payroll-related career? The interviewer wants to know more about your interest in payroll and why you chose a career in payroll. - Maybe you took a payroll class in high school, and it intrigued you. - Perhaps your parent or guardian worked in a similar function, and you found interest in what they did for a living. - Maybe you had a teacher who encouraged you to pursue a career in accounting or payroll because of your detail-oriented nature and keenness in numbers and problem-solving. Whatever your path, be excited to share it! Discuss any related education and training you have completed along the way. This information will solidify your interest and commitment to your payroll career. Example #1: "I started my career as a cashier in a big department store. Over time, I was promoted to Floor Manager, then Assistant Store Manager, and finally - Store Manager. I earned these promotions based on my dedication to the job and my keen attention to detail. My cash counts were always accurate, and I helped other cashiers balance their registers at the end of the day. As the Store Manager, I grew a strong interest in payroll responsibilities. From this interest, I decided to pursue an education in accounting, which my company helped fund since their tuition program extended to those in management roles. Once I completed my accounting education, the same department store hired me to work in their payroll processing department. I have been with this employer for 10 years now, and they have provided me with so much opportunity. Now, I am ready to move forward into a payroll position that encompasses an industry outside of retail where I can learn more complex payroll runs and related accounting duties." Example #2: "My initial career interests were in Accounting and Human Resources. In my first professional role as an HR Coordinator, I was responsible for daily payroll management. I found the responsibilities to be fascinating and a great combination of the two areas of business that interested me; HR and finance. I've continued my career in payroll for the past nine years and enjoy adding value to my employer by delivering a smooth process each payroll cycle." Here is an anonymous answer example: "i graduated with a bachelor of science degree in business administration, but i always had an aptitude for numbers and high attention to detail. i got hired by a payroll provider, and that was when i realized my passion for ensuring accuracy in payment processing. i thought about the criticality of timely and accurate processing and how people's livelihoods depended on it, which was what cemented my love for payroll." In response to the anonymous answer example, here is what Rachelle Enns said: Well done! It's apparent that you care about your work and the people who are impacted positively by your accuracy. Your overview is straightforward and focuses on the highlights, which is great!30. What information do you require before you approve payroll? Each organization will likely have different controls in place before approving payroll. Of course, you will need all timesheets approved, compensation changes entered, bonuses allocated, relocation assistance entered, and any other special data for the week addressed. Be sure to mention these items in addition to what your current process is. You may have a checklist built into your payroll software, or perhaps you have a checklist in place; be sure to mention these tools too. Example #1: "It depends on the methodology we are using to calculate the payroll for the employees. If we have a payroll system in place, we always have a ready-to-use checklist, and we need to ensure that all the items in the checklist are in place. But, if there is no system and we have to do it on our own, I prefer using Excel and have my own checklist of items according to which I usually need all timesheets approved, compensation changes entered, bonuses allocated, relocation assistance entered, and any other special data for the week addressed. In the organization that I currently work, we use a payroll system, so we have a checklist that we follow." Example #2: "I take a close look at everything before approving payroll, including the total number of hours, paid time off, bonus and commission payouts, and more. I also look at reported expenses and match them against expected expenditures. It is my duty to take the payroll process seriously, which means ensuring all necessary checks have been carried out and all procedures are followed to the letter."31. There are times when we are placed under extreme pressure on the job. Tell about a time when you were under such pressure and how you handled it. Payroll is a field with sharp deadlines and high expectations of precision and accuracy. The interviewer wants to hear that you handle the pressure of working as a Payroll Specialist without getting worked up emotionally when roadblocks occur. Think about a time when you had a pressure-filled day. Prepare to tell your story-based example using the STAR answer method, an acronym for Situation, Task, Action, Result. Describe what made the day complex and pressure-filled and what your responsibilities were in this situation. Next, tell the interviewer how you tackled the stressful situation. Finally, wrap up your response by sharing the positive result of your actions. Example #1: "While working as a Payroll Manager for Company ABC, my director delegated tasks related to timesheet entries to one of our newer team members. By the end of the month, we received an intimation from the accounts department that they had not received the calculations from our side till that date. This information was delayed by four days. Without further delay, I jumped in and worked overtime to ensure that the information was received before the consequences became dire. I ensured timely salary calculations, and no paycheck delays were caused. My job as a Payroll Specialist is essential as many employees rely on my work for timely disbursement of their salaries." Here is an anonymous answer example: "as a payroll processor, we were trained to complete one payroll before moving on to the next. however, on semimonthly days, i had to complete an enormous amount of direct deposits for each company before 12 pm. it was 11 am, and i realized i didn't have enough time to accomplish it the traditional way. i felt the pressure, but i reassured myself by tending to the most urgent and necessary objectives that needed to be completed first. that was when i created a new system of completing only the direct deposit portion first for each payroll until all direct deposits were completed before the cutoff and coming back to the remaining steps of the process later. all payrolls were completed on time, and i delivered quality service." In response to the anonymous answer example, here is what Rachelle Enns said: You tell this story well - and it's clear that you have done your research on how to formulate and organize responses to behavioral-based interview questions. Here is an anonymous answer example: "we had a change in government and the country's new president wanted all public sectors to be audited. we were required to produce a 10-yr wage bill for over 800 staff within 7 business days. it was a bit challenging, because some of the data wasn't backed up in the software and i had to source for it manually. i immediately mobilized a small team and disseminated duties amongst us; we worked overtime and weekends to be able to meet up, and we were able to deliver within 5 business days." In response to the anonymous answer example, here is what Rachelle Enns said: Very good! This sounds like a very high-pressure situation, indeed. Your answer is straightforward, and you organize the response very well, allowing the interviewer to easily follow along.32. We spend considerable time editing our timesheets to ensure no errors are present. How do you approach finding and fixing an error? Timesheet mistakes will occasionally happen, but that is why you are diligent with checking and editing. Sometimes timesheet errors are 'one and done' situations where you correct the issue move on. Other times, errors occur regularly. In these cases, discuss how you collaborate with your team and troubleshoot to ensure that the issue is fixed so that it does not continue to cause payroll problems in the future. Example #1: "In payroll, we do account for human error, which occurs when tasks are manual. I do work to automate as many tasks as possible so that our team can avoid unnecessary timesheet errors. I always check the timesheets for errors in advance. If I find an error, I check with the appropriate person or department manager for clarification and then make the necessary adjustments. If the situation occurs regularly, I will work directly with the involved individuals to train them on the current inputs so that their situation does not continue to occur." Example #2: "From what I understand, timesheet errors can be quite common. While completing my practicum with Company ABC, very few payroll tasks were automated. This meant there was more room for human error. Proper timekeeping is crucial to a company, the employees and by law, so it is important that errors are corrected in a timely fashion. If I notice frequent errors from a common denominator, I will work with that team member or department lead to ensure training at the source."33. What is retro pay? This basic question will allow the interviewer to gauge your level of experience and knowledge in payroll. It will also show the interviewer your ability to explain an accounting-related term in a way that anyone can understand. People can clearly explain concepts they genuinely understand, after all! Your response should be straightforward and to the point. Example #1: "Retro pay happens when an employee receives a pay increase. In this instance, there is a date the new rate of pay begins. Sometimes this is not communicated to payroll in time for the new paycheck cycle, so we 'retro pay' the employee for wages that should have been received at the newly updated pay rate." Example #2: "Retro pay is retroactive payment for a service or work, typically when payment is overlooked or an error takes place. Retro pay will correct the payment and make the change retroactive to the appropriate effective date."34. Can you describe the use of forms W2, W4, and 941? The interviewer is looking for evidence that you understand the uses of these basic payroll forms. Provide a high-level overview of each of these forms. The way you answer this question will allow the interviewer to gauge your level of experience and knowledge in payroll. It will also show the interviewer your ability to explain an accounting-related term in a way that anyone can understand. Your response should be straightforward and to the point. Example #1: "W2 form is an IRS mandated form that employers must supply to each employee at the beginning of each calendar year which shows annual earnings, taxes withheld, tips, etc. This is the form employees utilize for their personal income taxes each year. A W4 is a form that employees complete to tell the employer the amount of taxes to withhold from their paycheck. The employee identifies their marital status as well as the number of exemptions they would like to claim. A 941 is a document related to the employer's quarterly federal tax payment. This form shows the employer's portion of federal income taxes, Medicare tax, and social security tax. I am well versed in each of these forms." Example #2: "I learned about each of these forms while completing my Payroll Compliance education. From my understanding a W2 form is an IRS mandated form that shows annual earnings, taxes withheld, tips, and more for each employee. An employee completes a W4, telling the employer the amount of taxes they would like withheld from their paycheck. A 941 form shows the employer's portion of federal income taxes, Medicare tax, and social security tax."

5.

Describe to me any payroll process that you have developed or revised.

6.

Each of our buildings has a designated payroll timekeeper that reports biweekly. Two reports are late. How would you approach this situation?

7.

What are your salary expectation?

8.

How do you remain up-to-date on payroll rules and techniques?

9.

What is the largest payroll run you have been in charge of?

10.

If an employee called in with a payroll complaint, how would you handle it?

11.

What are the most important attributes a Payroll Specialist should have?

12.

What have you done to improve your written and verbal communication skills?

13.

What are your future plans with the company?

14.

Give me examples of the payroll reports you have prepared.

15.

What is a general ledger?

16.

How would you familiarize yourself with our payroll system?

17.

What is a fiscal year?

18.

How does higher management benefit from payroll reports?

19.

Why are you interested in this Payroll Specialist position?

20.

How do you ensure that payroll is paid correctly and on time?

21.

Would you ever pay an employee through accounts payable rather than payroll?

22.

Have you had responsibility for state and federal tax payments?

23.

Do you plan to open up your own accounting or payroll firm?

24.

Have you performed bookkeeping for small businesses? If so, walk me through your experience.

25.

Describe your familiarity with the administration of 403b and 457 plans.

26.

Tell me about the payroll forecasting you have been responsible for.

27.

What cost-cutting measure have you been in charge of implementing?

28.

Walk me through your payroll experience.

29.

How did you get started in a payroll-related career?

30.

What information do you require before you approve payroll?

31.

There are times when we are placed under extreme pressure on the job. Tell about a time when you were under such pressure and how you handled it.

32.

We spend considerable time editing our timesheets to ensure no errors are present. How do you approach finding and fixing an error?

33.

What is retro pay?

34.

Can you describe the use of forms W2, W4, and 941?

Payroll Specialist Interview Questions

What courses did you enjoy most while completing your accounting/payroll education?

Payroll Specialist Interview Questions

What courses did you enjoy most while completing your accounting/payroll education?

Describe a typical payroll day in your current position.

What experience do you have implementing a new payroll system?

What information do you need to properly set up an employee into a payroll system?

Describe to me any payroll process that you have developed or revised.

Each of our buildings has a designated payroll timekeeper that reports biweekly. Two reports are late. How would you approach this situation?

What are your salary expectation?

How do you remain up-to-date on payroll rules and techniques?

What is the largest payroll run you have been in charge of?

If an employee called in with a payroll complaint, how would you handle it?

What are the most important attributes a Payroll Specialist should have?

What have you done to improve your written and verbal communication skills?

What are your future plans with the company?

Give me examples of the payroll reports you have prepared.

What is a general ledger?

How would you familiarize yourself with our payroll system?

What is a fiscal year?

How does higher management benefit from payroll reports?

Why are you interested in this Payroll Specialist position?

How do you ensure that payroll is paid correctly and on time?

Would you ever pay an employee through accounts payable rather than payroll?

Have you had responsibility for state and federal tax payments?

Do you plan to open up your own accounting or payroll firm?

Have you performed bookkeeping for small businesses? If so, walk me through your experience.

Describe your familiarity with the administration of 403b and 457 plans.

Tell me about the payroll forecasting you have been responsible for.

What cost-cutting measure have you been in charge of implementing?

Walk me through your payroll experience.

How did you get started in a payroll-related career?

What information do you require before you approve payroll?

There are times when we are placed under extreme pressure on the job. Tell about a time when you were under such pressure and how you handled it.

We spend considerable time editing our timesheets to ensure no errors are present. How do you approach finding and fixing an error?

What is retro pay?

Can you describe the use of forms W2, W4, and 941?