34 Payroll Specialist Interview Questions (with Answers)

1.

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.

Christine's Answer

"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."

Rachelle's Answer

"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."

2.

Describe a typical payroll day in your current position.

The interviewer would like details around how you organize your payroll days. Perhaps you have a special checklist that you utilize on the day you run payroll, or maybe your software system has a checklist for you. Provide the interviewer with an overview of what an average payroll day looks like for you, remembering that the interviewer's goal is to hear that you are organized, diligent, and pay attention to detail.

Christine's Answer

"I have a monthly checklist with different due dates. I split tasks from the start, middle, and end of the month. Then, I put all of these tasks in my Google calendar and set up alerts. Using these organizational tools, I never miss a deadline and focus on efficiency rather than waste time trying to remember what tasks are next. Missing even a single pointer can mean a delay in employee salary distribution which is unacceptable. This importance is why I am sure to remain diligent and pay attention to every deadline and detail."

Rachelle's Answer

"One of the things I love most about my work as a Payroll Specialist is there is no such thing as a 'typical' day. I am always managing an aspect of the payroll cycle, whether in preparation, inputting, processing or auditing. As always, things will come up that my team and I address, such as payroll inquiries from business leaders or employee compensation questions. This variety keeps my role interesting since I love to problem-solve. I'd love it if you could take me through an average day in this position with Company XYZ."

3.

What experience do you have implementing a new payroll system?

If you have experience implementing a new payroll system, discuss your involvement in detail. For instance, the interviewer may want to know how you approached researching new payroll systems. Perhaps you asked for input from other payroll professionals, watched demonstrations, met with vendors, and received numerous quotes before making suggestions to your leadership team. Talk about how you analyzed your organization's needs to select the correct product suggestions and determine which components of the new system would be most critical.

Discuss the stakeholders you worked with to implement the new system, and how you integrated data from the company's existing system. You can also discuss how you communicated with staff to bring them up to speed on locating their pay stubs, and any other pertinent details in the new system.

The interviewer will want to hear that you handled this process carefully while navigating the complex landscape of system changes.

If you have not been part of implementing a new payroll system, be open and honest with the interviewer. Inform the interviewer of the payroll systems you have worked with, and assure them that you are ready to handle tasks that require critical thinking and calculated decision making.

Christine's Answer

"I researched and then implemented a new payroll system while working with Company ABC. First, I researched new payroll systems and asked other payroll professionals in my network for their professional opinions. The next step was to analyze our organization's needs to select the correct product as well as product components. Once I narrowed down these components, I watched demonstrations online to determine the top three systems that could meet the organizations' unique needs. Then, I met with vendors and received quotes. I worked in sync with our finance and IT departments to avoid technical or functional errors when we integrated our existing data into the new system. Then, I arranged team training on the new system. Overall, the implementation was a great success. Our company was able to automate many aspects of payroll and there were fewer errors as a result."

Rachelle's Answer

"My work has been with organizations that have solid payroll systems in place. I have worked on a variety of payroll systems in my career, including A, B, and C. Is your organization considering an overhaul of its existing payroll system?"

4.

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

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 properly set up an employee in a payroll system. Your response should be straightforward and to the point. Be sure to include information on the payroll systems or accounting software you are familiar with.

Christine's Answer

"To set up an employee into a payroll system, such as Quickbooks, the details I would include are the employees' full name, date of birth, social insurance number, pay rate, commission and bonus details, and any other variable forms of payment. Also, if the employee would like additional income tax deduced, I would include that information, and any other details the company deems necessary to log."

Rachelle's Answer

"From my understanding, to set up an employee into a payroll system, I should include personal details such as the employee's full name, government ID, compensation details, and any other information required to ensure the employee is paid correctly and within pay regulations for the company's region."

5.

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

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Payroll Specialist Interview Questions

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

Payroll Specialist Interview Questions

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

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?

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

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?

What are your future plans with the company?

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

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

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

Give me examples of the payroll reports you have prepared.

What is a general ledger?

How would you familiarize yourself with our payroll system?

How does higher management benefit from payroll reports?

What is a fiscal year?

Why are you interested in this Payroll Specialist position?

Have you had responsibility for state and federal tax payments?

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

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

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 is retro pay?

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

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

What information do you require before you approve payroll?

Walk me through your payroll experience.

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

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.

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