34 Payroll Specialist Interview Questions & Answers
Table of Contents
- 1. Behavioral Questions
- 2. Career Goals Questions
- 3. Communication Questions
- 4. Compatibility Questions
- 5. Competency Questions
- 6. Diligence Questions
- 7. Direct Questions
- 8. Discovery Questions
- 9. Entry Level Questions
- 10. Experience Questions
- 11. Problem Solving Questions
- 12. Salary Questions
- 13. Scenario Based Questions
- 14. Tough Questions
Behavioral
1. If an employee called in with a payroll complaint, how would you handle it?
How to Answer
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.
Written by Christine Pasqueretta
Entry Level Example
"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."
Written by Christine Pasqueretta
Answer 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.
Written by Carrie Nelson on October 28th, 2022
Senior Level Example
I would research and resolve their issue and let them know when the task has been accomplished. If it takes more than 24 hours, I would give them interim updates to keep them informed of what is happening.
When the task is complete, I would look at trends as it relates to the issue. If it was a system error, can the system be changed. If the issue has happened with others and it is a user error, perhaps additional training should be provided to the employees. If it is the same employee who keeps making the same mistake, then their supervisor should be informed so they can coach the person toward being more successful.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"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."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
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.
Career Goals
2. Do you plan to open up your own accounting or payroll firm?
How to Answer
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.
Written by Christine Pasqueretta
1st Entry Level Example
"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."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
"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."
Written by Christine Pasqueretta
2nd Experienced Example
No, I do not have plans to open my own accounting or payroll firm. I am happy to work for someone else and I want to contribute in that way. More specifically, I want to work for this company because it has a good reputation, I am passionate about the work that you do, and I want to be part of this great team of workers.
Written by Carrie Nelson on October 28th, 2022
Career Goals
3. What are your future plans with the company?
How to Answer
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.
Written by Christine Pasqueretta
1st Entry Level Example
"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."
Written by Christine Pasqueretta
1st Experienced Example
"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."
Written by Rachelle Enns on March 6th, 2021
2nd Experienced Example
My initial plans are to learn as much as possible. Not just about the company and processes but also about the people and the culture. I want to build relationships and trust. I hope that over time, I can prove myself and be considered for more responsibility.
Written by Carrie Nelson on October 28th, 2022
Communication
4. What have you done to improve your written and verbal communication skills?
How to Answer
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.
Written by Christine Pasqueretta
1st Answer Example
"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."
Written by Christine Pasqueretta
2nd Answer Example
"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."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
In my current position, some of the employees were struggling with understanding the timesheet and payroll system. So I updated the written instructions and I tested it on several people including new and existing employees to gather their feedback. This allowed me to improve my written skills in a hands-on way.
I also created and presented a webinar for employees who learn more visually. After the webinar, the employees completed a survey and rated the experience. I was given an 8 out of 10. However, it was their written comments that helped me improve even more on my verbal skills moving forward.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"I'm naturally shy, yet I purposely minored in journalism while in college. So I was required to study many verbal communication courses and participate in a number of group assignments where each participant's input was crucial to successfully pass the course. In my current role as operations manager for a major financial institution, I have been required to attend training courses alongside many of my colleagues from upper-level management and market leadership. So whenever the opportunity would present itself I would connect with those colleagues and exchange information and ideas about new information, techniques, or just any overall advice pertaining to how to achieve the career goals I'd set for myself."
Written by an Anonymous User
Our Professional Interview Coach
Stephanie Cafaro Reviewed the Above Answer
Great! It sounds like you've worked hard to overcome your growth edges in this area. This is a well-rounded and thoughtful response, however, I suggest adding a closing sentence that explicitly states your confidence in your ability to execute written and verbal communication skills effectively in this role.
Compatibility
5. What are the most important attributes a Payroll Specialist should have?
How to Answer
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.
Written by Christine Pasqueretta
Entry Level Example
"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."
Written by Rachelle Enns on March 6th, 2021
Answer Example
"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."
Written by Christine Pasqueretta
Experienced Example
The most important attributes for this position begins with organization skills and attention to detail. That is of course paramount. Then it involves building trust and credibility because this is an important position. More specifically, you need to be professional at all times and make sure to maintain confidentiality of the data. It also important to have good people skills and offer excellent customer service. Payroll is a serious matter and it is important to show people respect and concern when they have any kind of question or concern.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"Payroll professionals have access to a business's most sensitive information. Thus, a high level of patience, confidentiality, and attention to detail are paramount. I put attention to detail and confidentiality first. Confidentiality builds trust with employers, and employees feel reassured knowing that their information is safe. Attention to detail ensures a high level of accuracy, which does not necessarily mean zero errors, but can ensure that a system is in place to minimize errors."
Written by an Anonymous User
Our Professional Interview Coach
Stephanie Cafaro Reviewed the Above Answer
Excellent response! You have a very clear understanding of the role of a payroll specialist and the unique skills required for success.
Competency
6. Describe a typical payroll day in your current position.
How to Answer
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.
Written by Christine Pasqueretta
1st Experienced Example
"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."
Written by Christine Pasqueretta
1st Answer Example
"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."
Written by Rachelle Enns on March 6th, 2021
2nd Experienced Example
It depends on the day. On a payroll processing day, I have a list of tasks that I perform and each task is completed at a certain time. For example, reviewing timesheets and sending reminders for anything that is incomplete, reviewing and recent payroll or benefit changes in the system to ensure accuracy, then the final timesheet upload, and payroll processing.
The day after payroll is processed, I focus on creating xx number of payroll reports and transmitting and validating the 401(K) information.
Written by Carrie Nelson on October 28th, 2022
Competency
7. How do you ensure that payroll is paid correctly and on time?
How to Answer
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.
Written by Christine Pasqueretta
1st Answer Example
"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."
Written by Christine Pasqueretta
2nd Answer Example
"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."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
I have a system of checks and balances and I make sure that system is followed properly for every payroll. This includes a pre-check of the system including any recent changes. I maintain a list of all changes such as raises, bonuses, new employees who started this pay cycle, etc. After I implement any changes, I double check each one, line-by-line to ensure accuracy. I do the same with reviewing timesheets and cross checking the hours from the timesheet system and the final payroll. A final preview is also conducted before payroll is transmitted and total numbers are compared to budget.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"Using checklists and taking extensive notes has always been an important part of meeting deadlines for me. I plan to keep notes and plan ahead using the checklists especially for any special payment items and then double-check my work before submitting it."
Written by an Anonymous User
Our Professional Interview Coach
Stephanie Cafaro Reviewed the Above Answer
This is a solid response. If you have any other internal systems that have worked for you (example: color-coding, a scheduling app, etc), you may also wish to share that.
Diligence
8. How do you remain up-to-date on payroll rules and techniques?
How to Answer
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.
Written by Christine Pasqueretta
1st Answer Example
"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."
Written by Christine Pasqueretta
2nd Answer Example
"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."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
The payroll provider is actually excellent at keeping the Payroll Admins informed of payroll rules and techniques. This includes the various federal and state payroll laws and policies that are always sweeping the nation. But it also includes information about the payroll system itself and the upgrades they are continually making to enhance the program.
I am also a member of xx association and receive their weekly updates and attend their quarterly meetings. During the meetings, there is open dialog between the Payroll Admin from dozens of companies and we learn tips from each other. We also have a chat page on the website to share ideas or questions.
In my current job, I am responsible for processing payroll in xx number of states so I block xx minutes in my schedule per week to spend time reading the articles and/or program upgrades to see if the information is valuable for my position. I am always looking for ways to improve and do my job even better.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"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."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
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.
Diligence
9. We spend considerable time editing our timesheets to ensure no errors are present. How do you approach finding and fixing an error?
How to Answer
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.
Written by Christine Pasqueretta
1st Answer Example
"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."
Written by Christine Pasqueretta
2nd Answer Example
"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."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
First, I would gather information from multiple people to learn more about what errors are occurring and why. Then I would seek to fix them. If the issue is human error, then I would make sure there are clear instructions that are presented both verbally through training videos and in writing. It can also be helpful to provide examples if what a correct timesheet looks like and what an incorrect one looks like. We could even create a mandatory training for all employees, if needed. We also need to make sure the managers are trained in correcting errors before it gets to payroll. They can also help with training employees who do not understand.
If the errors are coming from the system then we need to talk to the payroll provider to see if they can help make edits. As an example, if a certain pay code should only be used by one group of employees, then they should be the only one to access that code. The payroll provider has a vested interest in keeping you happy and that relationship should be leveraged whenever possible.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"Timesheet errors are quite common. In my current role, I would have to edit and submit time weekly. Although much of it is automated, employees are still responsible for clocking in and out on time, thus leaving room for human error. Locating such an error would be a simple as asking a question and also verifying punches against the schedule. Moreover, in my experience when an employee has not submitted their time for review you can expect that they have found a discrepancy."
Written by an Anonymous User
Our Professional Interview Coach
Stephanie Cafaro Reviewed the Above Answer
This response shows your understanding of the steps needed to ensure accuracy. My only suggestion is to perhaps include a closing sentence that clarifies the need for a high attention to detail. For example, "This is highly detail-driven work, which is a strong fit for my professional skills and experiences."
Diligence
10. What information do you require before you approve payroll?
How to Answer
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.
Written by Christine Pasqueretta
1st Entry Level Example
"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."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
"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."
Written by Christine Pasqueretta
2nd Experienced Example
We have written policies for everything that is required including the timeframe when everything needs to be submitted to me. For example, all timesheets must be approved by a supervisor by noon on Monday for processing on Tuesday. Any off-cycle raises or bonuses must be approved by a VP. Any employment changes such as a new employee joining or an existing employee changing benefits, must be approved by a Human Resource Business Partner prior to payroll being run. I have to make sure the proper approvals were conducted and are saved in the system for auditing purposes before they are implemented.
Written by Carrie Nelson on October 28th, 2022
Diligence
11. How would you familiarize yourself with our payroll system?
How to Answer
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.
Written by Christine Pasqueretta
1st Answer Example
"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."
Written by Christine Pasqueretta
2nd Answer Example
"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?"
Written by Rachelle Enns on March 6th, 2021
3rd Answer Example
I have xx years of experience with your payroll system. Ideally, I would like to watch someone run the payroll here while I take notes. This will help me to understand the nuances and pay codes associated with your company. If you use any tools that I am not familiar with, I can take the appropriate trainings within the system. I would also like to meet with some of the managers and understand the payroll process from their perspective including expectations on deadlines.
I will type all of my notes into one document so it can become a manual. The existing/previous payroll admin could review those notes for accuracy. Then I could run the next payroll while they watch, if they are available.
If there is no one on site to train me, I would review your previous payroll reports and connect with the Payroll Rep to see if they have any guidance on training that is specific to your system. I can also ask them to review a prepared payroll before it is processed.
Written by Carrie Nelson on October 28th, 2022
Direct
12. What is retro pay?
How to Answer
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.
Written by Christine Pasqueretta
Entry Level Example
"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."
Written by Christine Pasqueretta
Answer Example
"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."
Written by Rachelle Enns on March 6th, 2021
Experienced Example
Retroactive pay is a sum of money owed to an employee for work done in the past. This might occur after a mistake is made in payroll or if the employee did not complete a previous timesheet properly. It might also occur if an employee was promised a raise and the payroll department was not informed properly before a previous payroll was run.
Written by Carrie Nelson on October 28th, 2022
Direct
13. What information do you need to properly set up an employee into a payroll system?
How to Answer
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.
Written by Christine Pasqueretta
Entry Level Example
"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."
Written by Rachelle Enns on March 6th, 2021
Answer Example
"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."
Written by Christine Pasqueretta
Experienced Example
Name
Address (payroll taxes can vary by state and region)
Social Security Number
Date of Birth
Start Date
Title
Salary - hourly or salaried based on the positions
Exempt or Non-Exempt Status
Supervisor Name (so they can approve the timesheet or time off requests)
Federal and State Tax Elections
Direct Deposit Information (this is optional at some companies)
Written by Carrie Nelson on October 28th, 2022
Direct
14. What is a fiscal year?
How to Answer
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.
Written by Christine Pasqueretta
Entry Level Example
"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."
Written by Rachelle Enns on March 6th, 2021
Answer Example
"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."
Written by Christine Pasqueretta
Experienced Example
A fiscal year is a 12-month period that companies and governments use for financial reporting and budgeting. A fiscal year is most commonly used for accounting purposes to prepare financial statements. Laws in most jurisdictions require companies to prepare and publish financial reports on an annual basis. Typically, the leaders of the company set revenue and expense goals for the year and then break those down to quarterly and monthly to track ongoing results.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"A fiscal year is a company's 12 month accounting period. Sometimes it is a calendar year and other times it is not. A company's fiscal year may begin on May 1st and end on the last day April of the following year."
Written by an Anonymous User
Our Professional Interview Coach
Stephanie Cafaro Reviewed the Above Answer
Great--you clearly show your content knowledge in this area!
Direct
15. What is a general ledger?
How to Answer
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.
Written by Christine Pasqueretta
1st Answer Example
"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)."
Written by Christine Pasqueretta
2nd Answer Example
"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."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
A general ledger is a recordkeeping system used to sort, store, and summarize a company's financial transactions. It is important for the general ledger to match with payroll records. So in my roll, I am often working with the Accounting Manager to review and audit any differences that we find between the systems. We also work together to make sure items are coded properly in payroll so that they feed into the correct categories in the general ledger.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"The general ledger is the foundation of a company's double-entry accounting system.
General ledger accounts encompass all the transaction data needed to produce the income statement, balance sheet, and other financial reports."
Written by an Anonymous User
Our Professional Interview Coach
Stephanie Cafaro Reviewed the Above Answer
Great! Your content knowledge of this industry really shines here.
Direct
16. Why are you interested in this Payroll Specialist position?
How to Answer
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.
Written by Christine Pasqueretta
1st Answer Example
"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."
Written by Christine Pasqueretta
2nd Answer Example
"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]."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
I have been passionate about having a career in payroll since my first accounting class in college, five years ago. I think it is one of the most important jobs at a company and I feel that I do it well. I like the mission of your company. You have a lot of smart and hard working people here and I think I would be a good fit on the team.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"In my current role, much of my time is spent evaluating reports, tracking time punches and cash levels, and dealing with queries from clients and colleagues who believe they have found discrepancies within one or more of their statements or transactions. A career in payroll will allow me to hone and develop these skills, and it promises to continually give me opportunities to acquire new skills."
Written by an Anonymous User
Our Professional Interview Coach
Stephanie Cafaro Reviewed the Above Answer
I have two quick suggestions to improve this response: 1.) I suggest replacing the phrase "dealing with," as this can have a bit of a negative connotation. For example, you could say "navigating queries..." etc. 2.) I suggest highlighting any specific strengths that lead you to be interested in the Payroll Specialist position (example: orientation to detail, passion for numbers, etc.)
Direct
17. Walk me through your payroll experience.
How to Answer
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.
Written by Christine Pasqueretta
1st Experienced Example
"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."
Written by Christine Pasqueretta
2nd Experienced Example
"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."
Written by Rachelle Enns on March 6th, 2021
3rd Experienced Example
My payroll experience started in college while I was pursuing an accounting degree. We had class projects that involved mock payroll situations. I was an Intern at xyz company and I was involved with payroll budgeting but did not have access to actual payroll data. Upon graduation, I took a position as a Payroll Assistant and had that job for three years before being promoted to Payroll Admin. I worked in that job for 5 years and then took a new position at ABC company as a Payroll Manager and I have been there for 10 years. I started as the only payroll person but I hired and trained two Payroll Admin who work directly for me now.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"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."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
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.
Discovery
18. How did you get started in a payroll-related career?
How to Answer
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.
Written by Christine Pasqueretta
1st Experienced Example
"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."
Written by Christine Pasqueretta
2nd Experienced Example
"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."
Written by Rachelle Enns on March 6th, 2021
User-Submitted Answer
"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."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
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!
Entry Level
19. What courses did you enjoy most while completing your accounting/payroll education?
How to Answer
Share your thoughts on the courses you most enjoyed during your post-secondary education, and be sure to include details as to why. The answer you provide will show the interviewer your greatest strengths and interests regarding accounting and payroll topics. Also, the hiring company could use this knowledge to help you follow a career path inside their company that plays to your interest and greatest strengths.
Written by Christine Pasqueretta
1st Entry Level Example
I have a business degree with a major in Accounting. I really liked all the accounting classes the most. I like the structure of accounting and organizing the numbers. I like researching anomalies and making everything tie together.
Written by Carrie Nelson on October 28th, 2022
1st Experienced Example
"I have always enjoyed working with numbers, and thus attending school to become a Payroll Compliance Practitioner made sense to me. In school, I really enjoyed learning about Payroll Compliance Legislation and how laws change from region to region. These regulation and compliance-related courses gave me a great feel for the work involved in effective payroll practices and how my work can contribute to my employer."
Written by Christine Pasqueretta
2nd Experienced Example
"When I was in school to become a Certified Payroll Manager, most of my coursework was highly enjoyable. I thrived in accounting, compensation theory, and organizational management. Most of all, I enjoyed learning about Benefits and Compensation Management. I like to educate employees on monetary and non-monetary reward and compensation programs. In my current position, I helped to optimize the company's incentive plans, including profit-sharing options."
Written by Rachelle Enns on March 6th, 2021
Experience
20. Have you had responsibility for state and federal tax payments?
How to Answer
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.
Written by Christine Pasqueretta
1st Entry Level Example
"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."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
"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."
Written by Christine Pasqueretta
2nd Experienced Example
Yes, I have been responsible for processing and recording quarterly federal, state, and unemployment taxes. I am also responsible for administering W2 and 1094/1095 reporting on an annual basis.
When we hire an employee in a new state, I am also responsible for registering our business in that state to ensure that state and unemployment tax accounts are created and implemented properly.
Written by Carrie Nelson on October 28th, 2022
Experience
21. What experience do you have implementing a new payroll system?
How to Answer
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.
Written by Christine Pasqueretta
1st Entry Level Example
"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?"
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
"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."
Written by Christine Pasqueretta
2nd Experienced Example
I have implemented new payroll systems three times before. Each time, I created a committee of 3-5 employees from the cross section of the organization to assist with the process. We assessed the needs from three perspectives: the employees, the managers, and the payroll/accounting/HR department. We made a list of our needs and created a scoring mechanism. Then we gathered quotes from 3-5 vendors and watched demos while scoring each one. Each person on the committee voted on the best system. We created a timeline for completion, gained approval from upper management, and then implemented the system across the company over a six month period. We informed the employees throughout the process and provided written training documents along with snippet videos about ho to perform each critical task in the new system.
Written by Carrie Nelson on October 28th, 2022
Experience
22. How does higher management benefit from payroll reports?
How to Answer
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.
Written by Christine Pasqueretta
1st Experienced Example
"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."
Written by Christine Pasqueretta
2nd Experienced Example
"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."
Written by Rachelle Enns on March 6th, 2021
Experience
23. Can you describe the use of forms W2, W4, and 941?
How to Answer
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.
Written by Christine Pasqueretta
Entry Level Example
"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."
Written by Rachelle Enns on March 6th, 2021
Experienced Example
"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."
Written by Christine Pasqueretta
Experience
24. Describe your familiarity with the administration of 403b and 457 plans.
How to Answer
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.
Written by Christine Pasqueretta
Entry Level Example
"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."
Written by Rachelle Enns on March 6th, 2021
Experienced Example
"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."
Written by Christine Pasqueretta
Experience
25. What is the largest payroll run you have been in charge of?
How to Answer
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.
Written by Christine Pasqueretta
1st Entry Level Example
I don't remember the exact figures offhand but my current company is the largest I have worked for and we have around 100 employees now.
Written by Carrie Nelson on October 28th, 2022
1st Experienced Example
"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."
Written by Christine Pasqueretta
2nd Experienced Example
"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."
Written by Rachelle Enns on March 6th, 2021
User-Submitted Answer
"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."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
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.
Experience
26. Have you performed bookkeeping for small businesses? If so, walk me through your experience.
How to Answer
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.
Written by Christine Pasqueretta
1st Answer Example
"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."
Written by Christine Pasqueretta
2nd Answer Example
"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."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
Yes, earlier in my career I served as a Bookkeeper at XX company. I set up new vendors in the system and made sure they each completed a W9. Then I matched the invoices with purchase orders and recorded every payment in their Quickbooks accounting system. This information was fed into the general ledger where all revenue and expenses were maintained to create a total financial picture or the orgnaization.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"In a previous role, I did a small amount of bookkeeping/payroll tasks in which I would track and edit employees' time punches, and verify overtime against the schedule. I was also responsible for the entry and maintenance of new and existing employees and submit payroll at the end of every week. Keeping track of employee meal expenses was also something I did daily."
Written by an Anonymous User
Our Professional Interview Coach
Stephanie Cafaro Reviewed the Above Answer
You clearly have experience in this area, so I suggest updating your response to remove the part about "small amount." There's no need to minimize your skills in this area!
Experience
27. Tell me about the payroll forecasting you have been responsible for.
How to Answer
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).
Written by Christine Pasqueretta
1st Entry Level Example
"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."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
"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."
Written by Christine Pasqueretta
2nd Experienced Example
On an annual basis, I work with the HR Director and Accounting Manager to forecast the next annual payroll. We look at trends from the past, such as the number of new positions that were created or eliminated, and we estimate future raises and bonuses. My role is to assign an average salary number to the future predicted changes and create an estimated total.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"I have not been granted the opportunity to dive into the formalities of payroll forecasting. However, in a previous role, I was responsible for scheduling, shift positioning, labor forecasting, and budgeting which was a type of prerequisite to payroll forecasting. I would pull the day's reports from the previous year's sales and evaluate the number of employees, the number of sales, and the number of open shift positions hour by hour to determine how many people I would need to operate each shift and how to position them."
Written by an Anonymous User
Our Professional Interview Coach
Stephanie Cafaro Reviewed the Above Answer
It sounds like these duties have well-prepared you for payroll forecasting! I suggest adding a concluding sentence to your response, such as, "The skills I've gained have laid the groundwork for payroll forecasting, and I am a fast learner. I am eager for the opportunity to learn payroll forecasting."
Experience
28. Give me examples of the payroll reports you have prepared.
How to Answer
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.
Written by Christine Pasqueretta
1st Answer Example
"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?"
Written by Christine Pasqueretta
1st Experienced Example
"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."
Written by Rachelle Enns on March 6th, 2021
2nd Experienced Example
In each of my previous positions, there was a unique set of reports that were required. I am flexible for each situation. In my current role, I currently:
1. Provide a "payroll journal" report to the Accounting Manager
2. A "cash requirements" report to the A/P Manager.
3. A 401k deductions report to the 401k carrier
In a previous position, I also entered each department payroll totals into a master budget sheet and provided a summary explanation if any department was more than 10% off budget.
During annual audits and the employee benefits renewal, I create and provide various reports regarding PTO balances, payroll summaries based on workers compensation codes, and complete employee census records.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"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."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
Wonderful response! You are very specific and sound confident that your experiences and skills will transfer well to this new role.
Problem Solving
29. What cost-cutting measure have you been in charge of implementing?
How to Answer
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.
Written by Christine Pasqueretta
1st Answer Example
"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."
Written by Christine Pasqueretta
1st Experienced Example
"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."
Written by Rachelle Enns on March 6th, 2021
2nd Experienced Example
Last year, I noticed that the expense reports for mileage seemed to vary greatly between employees. Some charged mileage for coming to the office every day which isn't really supposed to happen but the expense reports were already approved by the supervisor by the time I received them. Other times, I noticed some employees charged more than others for the same trips. I tracked some of the trends and showed my boss the issue. Then I created a new travel policy and expense report form with embedded numbers with the allowable rates. I sent the new written policy to all employees and then implemented a training. During the training, I informed everyone that future expense reports would be rejected if they were not completed properly. This helped reduce expenses by xx percent in the first quarter after it was implemented.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"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."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
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.
Problem Solving
30. Describe to me any payroll process that you have developed or revised.
How to Answer
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.
Written by Christine Pasqueretta
1st Answer Example
"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."
Written by Christine Pasqueretta
2nd Answer Example
"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."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
When I joined my current company, it was very small and they were using paper timesheets. Each employee had to calculate their total hours and make their own calculations for time and a half. Then the owner of the company paid payroll through an old version of Quickbooks. I researched payroll systems and told my supervisor about one named Gusto. I arranged for a demo and gather a quote. She gave approval and I worked with a Gusto rep to have our employee data and previous payroll information exported to their system. Then I created the company announcement and facilitated training sessions with the Gusto team to have each employee trained.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"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."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
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.
Salary
31. What are your salary expectation?
How to Answer
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.
Written by Christine Pasqueretta
1st Experienced Example
"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."
Written by Christine Pasqueretta
1st Answer Example
"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?"
Written by Rachelle Enns on March 6th, 2021
2nd Experienced Example
I make xx now including my annual bonus and I am seeking an increase of at least 10% in order to consider changing jobs. I have also reviewed your benefits and your 401(k) match is the same as I have now but your medical insurance would cost me $25 more per pay period which equates to $650 per year. This position also requires overnight travel for approximately 10% of my time and that takes me away from family and friends and needs to be a factor in my decision making. So I am seeking xx for this role but I am open to discussion, especially if there are other perks or benefits that I am not aware of.
Written by Carrie Nelson on October 28th, 2022
Scenario Based
32. Each of our buildings has a designated payroll timekeeper that reports biweekly. Two reports are late. How would you approach this situation?
How to Answer
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.
Written by Christine Pasqueretta
Experienced Example
"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."
Written by Christine Pasqueretta
Answer Example
"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."
Written by Rachelle Enns on March 6th, 2021
User-Submitted Answer
"If this were the first time this had occurred, I would reach out via email with a friendly reminder and request that they send the reports to prevent any further delays and then thank them ahead of time for their timely response. If this were to become a regular occurrence, I would want to speak with these timekeepers face-to-face to explain the importance of having the reports submitted on time and then express how not doing so may negatively affect their department and mine as well. I'd also ask some questions to find out why this problem is occurring and determine whether it is due to an issue out of their control."
Written by an Anonymous User
Our Professional Interview Coach
Stephanie Cafaro Reviewed the Above Answer
This response shows strong interpersonal skills, an active commitment to problem-solving, and close attention to detail. Good for you!
Scenario Based
33. 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.
How to Answer
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.
Written by Christine Pasqueretta
Answer Example
"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."
Written by Christine Pasqueretta
Experienced Example
There have been a few times due to seasonal work or acquisitions that we had a lot of new employees start on the same day. One time, it was 100 employees to start on January 1.
I was informed just a few weeks beforehand but I quickly created a list of what needed to be done and I spoke to my boss and asked if I could get support from other co-workers to help during this very busy period.
Two accountants offered to help on a part-time basis and we worked together to gather the employee paperwork and get all the data entry completed before their start date. I worked many evenings and weekends for 6-weeks straight and cancelled a vacation in the middle of it all. But to be honest, it was actually kind of fun. I loved seeing the company grow and I wanted to do everything I could to give the new employees a smooth transition into our organization
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"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."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
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.
Tough
34. Would you ever pay an employee through accounts payable rather than payroll?
How to Answer
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.
Written by Christine Pasqueretta
1st Answer Example
"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."
Written by Christine Pasqueretta
2nd Answer Example
"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."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
We use the A/P system to create manual checks if an employee is paid incorrectly. In these situations, we carefully record the information in payroll, as a line item, so our taxes are still recorded properly, and the information is reflected accurately for the employee's W2.
I have also used A/P when giving an employee a loan. This is very rare and approved by the CFO before it can occur. But a loan is paid back with interest. It is not income that should be taxed so it does not belong in the payroll system.
Written by Carrie Nelson on October 28th, 2022
User-Submitted Answer
"I do know that a number of different types of payments and expenses are processed using accounts payable. However, in this particular situation, I would have to seek out assistance from a leader, ask a range of questions before making this decision. I do believe that any number of extenuating circumstances would cause me to need to pay an employee through accounts payable."
Written by an Anonymous User
Our Professional Interview Coach
Stephanie Cafaro Reviewed the Above Answer
It sounds like this is a potentially tricky situation, and it's great that you illustrate your knowledge about payroll vs. accounts payable, while also acknowledging the need to check with a supervisor.