Key Takeaways
- The United States employed 153,140 payroll and timekeeping clerks in May 2025
- Mean pay was $28.67 per hour and $59,630 per year
- Median pay was $28.01 per hour
- Private industry benefits represented 30.0% of total compensation in June 2026
- Applying the broad private industry wage share gives a modeled employer cost of about $85,186 for the mean payroll clerk wage
Payroll specialist salary statistics need a clear occupational definition. The Bureau of Labor Statistics uses the category "payroll and timekeeping clerks." It covers workers who compile payroll data, calculate hours, and prepare paychecks. Companies may use titles such as payroll specialist, payroll coordinator, or payroll administrator for similar work, but job scope varies.
The latest national wage release reports 153,140 payroll and timekeeping clerks in May 2025. Their mean wage was $28.67 per hour, or $59,630 per year. The median was $28.01 per hour. These are wage estimates, not the full cost of employing a payroll specialist.
Payroll specialist salary data at a glance
| Measure | Latest figure | Reference period |
|---|---|---|
| U.S. employment | 153,140 | May 2025 |
| Mean hourly wage | $28.67 | May 2025 |
| Mean annual wage | $59,630 | May 2025 |
| Median hourly wage | $28.01 | May 2025 |
| Private industry wages as a share of compensation | 70.0% | June 2026 |
| Private industry benefits as a share of compensation | 30.0% | June 2026 |
Sources: BLS Occupational Employment and Wages, May 2025 and BLS Employer Costs for Employee Compensation, June 2026.
What a payroll specialist earns
The national mean of $59,630 is an average across industries, locations, experience levels, and employer sizes. The median hourly wage of $28.01 means half of workers earned less and half earned more. Neither number is a guaranteed offer rate.
The May 2024 release reported 156,950 workers, a mean annual wage of $56,870, and a median hourly wage of $26.58. Compared with that release, estimated employment decreased by 3,810 jobs, or 2.4%. The mean annual wage increased by $2,760, or 4.9%. The median hourly wage increased by $1.43, or 5.4%.
| National measure | May 2024 | May 2025 | Change |
|---|---|---|---|
| Employment | 156,950 | 153,140 | -2.4% |
| Mean annual wage | $56,870 | $59,630 | +4.9% |
| Median hourly wage | $26.58 | $28.01 | +5.4% |
The comparison uses two annual BLS estimates. It does not prove that individual workers received a 4.9% raise. Survey samples, industry mix, and employment composition can change between releases.
Estimated employer cost after benefits
BLS reported that private industry employers paid an average of $46.89 per employee hour in June 2026. Wages and salaries accounted for $32.82, or 70.0%, while benefits accounted for $14.07, or 30.0%.
Applying that broad 70.0% wage share to the $59,630 mean payroll clerk wage gives a modeled total compensation cost of about $85,186 per year:
$59,630 / 0.70 = $85,186
The estimated benefit portion is about $25,556. This is a planning model, not a payroll occupation estimate from BLS. The ECEC ratio covers private industry workers across many jobs. An employer should replace it with actual health insurance, retirement, payroll tax, leave, and workers' compensation costs.
| Cost component | Modeled annual amount |
|---|---|
| Mean wage | $59,630 |
| Estimated benefits and other compensation | $25,556 |
| Estimated total compensation | $85,186 |
Paid software, equipment, recruiting, training, management time, and workspace are outside this model. A vacancy also has an operational cost when payroll deadlines, employee questions, tax notices, and reconciliations move to another employee.
Salary is only one staffing variable
Payroll work combines recurring processing with deadline-sensitive exceptions. The position may include timecard review, new-hire setup, deductions, garnishments, paid leave, tax deposits, quarterly returns, year-end forms, and employee corrections. A role with multi-state tax work or complex benefits can command more than a position limited to data entry and report distribution.
Employers should compare candidates on the actual payroll environment:
- number of employees and legal entities
- weekly, biweekly, semimonthly, or monthly pay cycles
- number of states and local tax jurisdictions
- hourly, salaried, tipped, commissioned, and union populations
- benefit deductions, garnishments, and leave programs
- payroll system ownership and integration work
- responsibility for tax filing, reconciliation, and notices
The list explains why one national average cannot price every payroll job. A payroll specialist who owns tax compliance and quarter-end reconciliation does different work from a clerk who imports approved hours into a managed platform.
Employee, contractor, and managed support comparisons
An employee provides continuity and internal knowledge, but the employer carries recruiting, supervision, benefits, and coverage risk. A contractor can add temporary capacity for a conversion, cleanup, or leave period. A managed support team can handle documented processing work while the company retains approval authority and access controls.
The comparison should use total cost for the same scope. A low hourly rate is not comparable if it excludes management, backup coverage, software, or tax filing. The company should also keep approval of payroll changes separate from preparation where practical. That separation helps reduce unauthorized changes and makes review easier.
For a broader employment-cost model, see the cost of hiring a payroll specialist in 2026. Companies comparing an internal team with a provider can also review payroll outsourcing statistics and virtual bookkeeping services.
How to budget for the role
Start with the wage range for the location and job scope. Add the employer's actual benefit load, payroll taxes, software, equipment, recruiting cost, and training time. Then price coverage for vacations, illness, and peak periods.
A useful annual budget has four separate lines:
- Cash compensation, including overtime and bonuses.
- Benefits and legally required employer costs.
- Systems, equipment, recruiting, and training.
- Backup capacity and specialist review.
Keeping those amounts separate makes comparisons with contractors or outsourced payroll support more honest. It also shows where process changes can reduce cost without understaffing the control function.
Frequently asked questions
What is the average payroll specialist salary in 2026?
The latest BLS occupation data reports a mean annual wage of $59,630 for payroll and timekeeping clerks in May 2025. That is the closest national federal benchmark available in 2026.
What is the median hourly wage for a payroll specialist?
The May 2025 national median for payroll and timekeeping clerks was $28.01 per hour.
How much does a payroll specialist cost after benefits?
A broad model using the June 2026 private industry wage share produces total compensation of about $85,186 on a $59,630 wage. It is not occupation-specific. Use the employer's actual benefit costs for a hiring decision.
How many payroll and timekeeping clerks work in the United States?
BLS estimated national employment of 153,140 in May 2025.
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