What is a payroll manager?

A payroll manager is responsible for taking care of all the processes and tasks that are related to the payroll function of a business to ensure that they are done accurately, in line with government regulations, and on time. It is the responsibility of the payroll manager to ensure that all the employees of an organization receive their paychecks on time and without any unnecessary deductions. They also work closely with recruitment agencies to handle various processes, such as off-rolling of employees. This is just an outline of the responsibilities that a payroll manager has to fulfil when working with an organization. Other responsibilities may vary depending on an organization’s size, type, and industry.

Should a business outsource payroll or manage payroll internally?

Well, if you are a growing business that’s planning to expand in the future, the best thing for you to do would be to hire a recruitment agency for this function. Employment agencies usually have a massive pool of talented payroll managers to choose from. Moreover, the cost associated with having an in-house payroll manager outweighs its benefits. So, it is always better to outsource this function.

When you outsource payrolling to a recruitment firm, you don’t have to bear the expense of hiring an in-house payroll manager. This is a specialised position that not only requires the right qualification but right experience as well. The expenses associated with hiring an internal payroll manager can be on the higher side. Also, payroll managers need a team that they can supervise to get all the payroll-related work done. So, you need to hire a team of at least two or three people who will work under the payroll manager. This is a big financial commitment that a lot of startups and small and medium-sized businesses can’t make. The best alternative is to outsource this role.

By outsourcing the payroll manager’s role to a recruitment firm, you relieve yourself of all the expenses, effort, and time required to hire a payroll manager and put together a team that works under them. All of this will be taken care of by the recruitment firm you choose for this job.

Now that you know that outsourcing is a better alternative for a lot of businesses, let us discuss the responsibilities of a payroll manager.

What is involved in payroll administration?

A payroll manager is responsible for handling payroll administration tasks, which involve everything related to employee pay management. So these tasks include the management of different components that work together to decide an employee’s pay for a month. These could be anything from payment structure, and hours worked, overtime, and more. Payroll administration may also involve working with external placement agencies or recruitment agencies to manage the pay of those that are not directly on the organization’s payroll.

The following are the roles and responsibilities of a Payroll Manager:

  • Designs, maintains, implements, and reviews a payroll process system that ensures the accurate and timely processing of different transaction related to an organization’s payroll function. These transactions include salaries, benefits, and deductions, including taxes
  • Works with and handles a team of payroll management that is responsible for preparing and maintaining records of different payroll transactions
  • Evaluates the working of the payroll processing system, processes, and software regularly and shares the need for change or upgradation
  • Keeps track of and processes all the updates in the payroll management system, including updates related to terminations, new hires, and others
  • Assists in conducting audits by furnishing the required documentation, records, and reports to auditors
  • Makes sure that payroll policies comply with government payroll best practices and laws
  • Oversees changes in employee contracts
  • Answers employee questions related to payroll, new systems, deductions, and others

What are the skills and qualifications to look for in a payroll manager?

If you are looking for a payroll manager, then look for someone well-versed with different aspects of payroll processing and management. They also don’t hesitate to maintain a collaborative relationship with an organization’s employees and the HR department. Here are a few skills that you should look for in a payroll manager:

  • Attention to detail: A payroll manager frequently encounters forms, reports, documents, and spreadsheets. There could be errors in these documents which could impact the salaries of the employees. So, a payroll manager needs to have an eye for detail and should be able to find out and correct the smallest mistake or error in a report or document.
  • Mathematical skills: This is a must for payroll managers.There is a lot of number crunching involved, and excel skills are a good quality to have as well. Dealing with numbers is a significant part of a payroll manager’s position.
  • Understanding of payroll software: A payroll manager needs to be in sync with the changing technology. Knowing only Excel isn’t going to take you anywhere. A payroll manager needs to be well-versed with different systems, including a system that integrates with an existing workforce system and one that’s on the Cloud.
  • Honesty: Well, it’s a matter of trust. Your payroll manager deals with finances and taxes all the time. Also, he has access to private information about the organization and its employees that if disclosed to anyone could lead to severe consequences. So, you must find a person who can be trusted upon.
  • Education level: The prerequisite for a payroll manager’s role is a Bachelor’s degree in finance and/or accounting. Companies usually prefer a person with a Master’s degree in these disciplines or HR over people with a Bachelor’s degree. However, a Master’s degree isn’t a must. Sometimes your experience and knowledge trump everything else.

3 Point Human Capital is a payroll partner that has a comprehensive payroll outsourcing services process to ensure accurate, timely delivery of salaries. This is why we are one of the most reliable payroll outsourcing companies in India.


Your organization’s payroll processing and management function is an important function that you can’t overlook. Whether you are thinking of hiring an in-house payroll manager or looking for a placement agency to outsource this role, you need to know what all responsibilities do payroll managers fulfil. It will help you in finding the right fit.

3 Point is a leading payroll outsourcing service provider. We offer a comprehensive approach to payroll processing and have a robust payroll management process.