As of May 18, 2021, the average salary for a Payroll Manager in the United States is $111,500 per year, which breaks down to an hourly rate of $54.
However, a Payroll Manager's salary can vary significantly. Here’s a look at the typical salary range:
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A Payroll Manager's salary isn't a fixed number. It's shaped by several important factors. Below, we'll explore how your years of experience, geographic location, education and company size can directly affect your earning potential.
Experience is a primary driver of a Payroll Manager's salary. As you build your skills and take on more complex tasks, your compensation generally increases. Here's how the average salary grows at different career stages:
| Job Role | Years of Experience | Average Salary |
|---|---|---|
| Payroll Administrator IV | 7+ years | $102,669 |
| Payroll Team Lead | 7+ years | $88,856 |
| Payroll Supervisor | 7+ years | $95,469 |
| Payroll Manager | 7+ years | $111,500 |
| Payroll Director | 7+ years | $160,447 |
What Am I Worth?
Your salary can change significantly depending on where you work. States with a higher cost of living and strong industrial sectors often pay more to attract Payroll Managers. For example, consider the average annual salaries in these key locations:
Demanded Skills for the Role:
| Skills | Demand Percentage |
|---|---|
| Leadership | 5.99% |
| General Ledger | 2.36% |
| Auditing | 1.28% |
| Skill | Salary | Salary % Increase |
|---|---|---|
|
Process Improvement
|
$115,960 |
4%
|
|
Workday
|
$115,960 |
4%
|
|
Initiative
|
$114,845 |
3%
|
|
Leadership
|
$114,845 |
3%
|
|
Internal Control
|
$114,845 |
3%
|
|
Payroll Management
|
$114,845 |
3%
|
Your level of education can impact your salary potential. While many Payroll Managers enter the field with a High School Diploma or Technical Certificate degree, higher education can lead to more specialized and higher-paying roles.
According to our 100% employer-reported salary data, the median salary for a Payroll Manager with a High School Diploma or Technical Certificate is between $112,027 and $119,913).
Payroll Manager Salaries by Degree Level
| Degree Level | % of user with this level of education |
|---|---|
| No Diploma | 1.3% |
| High School | 31.5% |
| Associates | 17.6% |
| Bachelors | 41.9% |
| Masters | 7.7% |
| Doctorate | 0.1% |
Understanding how a Payroll Manager's annual salary breaks down can help with budgeting. Below, you can see the average hourly rate, weekly pay, and monthly pay for this role. Use the buttons to switch between different pay periods.
Last Updated on May 18, 2021For a Payroll Manager, the most direct path to higher earnings is advancing to the Payroll Director role. This promotion typically comes with a significant pay increase, bringing the average annual salary to $160,447 - a projected growth of 44% over your current level.
Salaries for a Payroll Manager can change over time, reflecting shifts in market demand and the overall economy. The median salary decreased from $102,626 in 2023 to around $101,938 in 2025, reflecting changes in demand, location, experience, and the wider economy. For a detailed analysis of Payroll Manager salary trends, .
| Year | Average Annual Salary |
|---|---|
| 2022 |
View More
|
| 2023 | $102,626 |
| 2024 | $102,340 |
| 2025 | $101,938 |
| 2026 |
View More
|
| 2027 |
View More
|
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A Payroll Manager's earning potential can vary widely depending on several factors, including location, industry, experience, education, and the specific employer. According to the latest salary data by Salary.com, a Payroll Manager earns the most in San Jose, CA, where the annual salary of a Payroll Manager is $140,635.
The highest pay for Payroll Manager is $130,482.
The lowest pay for Payroll Manager is $90,319.
Responsible for managing payroll processing operations. Establishes policies and processes that ensure accurate calculation of wages, tax withholdings, and company deductions. Interfaces between finance and human resource departments to provide accurate and useful information. Develops and produces payroll-related statistical reports. Ensures accurate and on-time governmental reporting and compliance. Oversees the activities and training of both professionals and support staff. Directs the resolution of complex issues or errors. Requires a bachelor's degree. Typically reports to a director. Manages subordinate staff in the day-to-day performance of their jobs. True first level manager. Ensures that project/department milestones/goals are met and adhering to approved budgets. Has full authority for personnel actions. Typically requires 5 years experience in the related area as an individual contributor. 1 - 3 years supervisory experience may be required. Extensive knowledge of the function and department processes.
Salary.com provides salary estimates, histograms, trends, and comparisons using data from employer job postings and third-party sources.
We offer detailed salary information across multiple percentiles for your reference. (Click here to learn Why the Salary Midpoint Formula Is Crucial for Achieving Pay Equity.)
With the most extensive online, real-time compensation data available, Salary.com helps you pinpoint your exact pay target.
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