Payroll Specialist Interview Questions

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Whether you are preparing to interview a candidate or applying for a job, review our list of top Payroll Specialist interview questions and answers.

  1. How do you manage your time to ensure you meet payroll-related deadlines? See answer
  2. How do you handle the stress associated with being a payroll specialist? See answer
  3. How do you ensure accuracy when completing payroll functions? See answer
  4. What are the primary duties of a payroll specialist? See answer
  5. How do you stay up-to-date on the latest changes in payroll regulations? See answer
  6. How has your education prepared you for a role as a payroll specialist? See answer
  7. What experience do you have using payroll software? See answer
  8. Describe a time when an employee submitted a questionable business expense. See answer
  9. Suppose an employee is angry because they feel you haven’t calculated their payroll deductions correctly. How do you handle the situation? See answer
  10. How do you deal with employees who are habitually late in submitting their work hours? See answer
  11. How would your payroll coworkers describe you? See answer
  12. Because of a problem that isn’t your fault, payroll will be processed late this week. How do you handle communicating the issue company-wide? See answer
  13. What about our company interests you as a payroll specialist? See answer
  14. What’s your experience with monitoring and recording sick days?
  15. What’s your most significant challenge as a payroll specialist?
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Hire your next Payroll Specialist today.

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Hire your next Payroll Specialist today.

Post a job
Our mission

Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

Read our editorial guidelines

15 Payroll Specialist Interview Questions and Answers

How do you manage your time to ensure you meet payroll-related deadlines?

A payroll specialist needs to maintain healthy deadlines for payroll submission and other critical tasks. The goal of the question is to evaluate the candidate's ability to manage their time effectively and prioritise tasks to meet payroll-related deadlines. What to look for in an answer:

  • Ability to prioritise tasks effectively to ensure they follow deadlines
  • Time-management skills to organise their daily tasks
  • Interest in meeting all work deadlines

Example:

"I use a calendar programme on my computer to record all deadlines, along with a reminder of upcoming dates. This process allows me to stay organised and on top of every task that has a deadline. I also use the calendar management system to record my running to-do list."

How do you handle the stress associated with being a payroll specialist?

Depending on the size of the company and the duties and responsibilities of the position, a payroll specialist needs to handle workplace stress effectively and responsibly. The goal of the question is to determine the candidate's response to stress in the workplace. What to look for in an answer:

  • Ability to cope with stress using positive and productive strategies
  • organisational and time management skills to plan their workday
  • Willingness to ask for help when needed

Example:

"When I'm in a stressful situation at work, I handle it in a few ways. First, if I can step away, I go for a quick walk to clear my head and refocus. If that isn't possible, then I use laughter as a coping strategy."

How do you ensure accuracy when completing payroll functions?

Accuracy is vitally important within a payroll position, as employees are quick to notice errors when their pay isn't what it should be. The goal of the question is to evaluate the candidate's process to minimize mistakes and ensure accuracy in their functions. What to look for in an answer:

  • Attention to detail and ability to remain accurate throughout all payroll functions
  • Ability to follow company standard operating procedures
  • Interest in pursuing a process that works to ensure accuracy in their work

Example:

"To stay accurate, I do several things in my job. First, if the company has a standard operating procedure, I'll follow the instructions to ensure I don't miss any steps. I also focus on the task at hand. I'll use my earbuds to tune out outside distractions, or if I'm in an office, I'll close the door."

What are the primary duties of a payroll specialist?

Depending on the company and position, a payroll specialist can have a wide range of duties and responsibilities. The goal of the question is to determine the candidate's understanding of the specific role based on the job description or posting. Their answer also provides insight into their level of experience in being a payroll specialist. What to look for in an answer:

  • Understanding of the duties and tasks specifically related to the role they've applied for
  • Experience in performing the duties of a payroll specialist
  • Interest in completing research about the company and position

Example:

"Based on the job description, I understand that a payroll specialist in your company prepares and submits payroll information to a third-party payroll company. The position also..."

How do you stay up-to-date on the latest changes in payroll regulations?

A payroll specialist must stay current with changing regulations and legislation to ensure that deductions and other calculations are correct. The goal of the question is to evaluate the candidate's process for updating their technical knowledge required to complete their tasks. What to look for in an answer:

  • Interest in continuing training and professional development
  • Ability to implement learning into their position
  • Communication skills to ask questions and discuss new regulations with others

Example:

"As a payroll specialist, it's vital that I stay current with the latest updates regarding deduction regulations and other tax information. I subscribe to several online groups that focus on national payroll regulations, and I receive updates whenever there's a change I need to be aware of."

How has your education prepared you for a role as a payroll specialist?

Depending on your company, you may require a payroll specialist to have specific educational training or certificates. The goal of the question is to determine the candidate's academic background and ability to use their training to benefit the position. What to look for in an answer:

  • Meet academic requirements
  • Ability to adapt academic knowledge to the benefit of the position
  • Implementation of learned skills into daily tasks and duties

Example:

"After I finished my bachelor's degree in business administration, I had the basic skills and knowledge to begin my career. I took the information I learned in school and immediately applied it to my daily work routine. It prepared me with the fundamentals to build on."

What experience do you have using payroll software?

Depending on your company, you may use a payroll software programme or send the information to a third-party payroll processor. Either way, the goal of the question is to evaluate the candidate's computer literacy skills and understanding of payroll software. What to look for in an answer:

  • Basic foundational computer literacy skills
  • Experience with company-specific payroll software, if required
  • Knowledge of payroll software programmes and interest in learning new programmes

Example:

"During my five years of experience working in payroll, I've always used some type of software to complete my tasks. I'm comfortable using Microsoft Excel and have used Ceridian Dayforce and Simply Accounting."

What's your experience with monitoring and recording sick days?

Part of a payroll specialist's duties may include recording and monitoring employee sick day accrual and usage. The goal of the question is to evaluate the candidate's experience with managing employee benefits. What to look for in an answer:

  • Understanding of payroll best practises regarding employee benefits
  • Experience in managing employee benefits
  • Ability to follow company standards and procedures

Example:

"In my most recent position, I managed several company-specific employee benefit programmes, including sick days and paid personal time off. In that role, I created a detailed spreadsheet to record and monitor accrual and usage of these special benefits."

Describe a time when an employee submitted a questionable business expense.

A payroll specialist must process additional payouts, such as business expenses, according to the company's guidelines and procedures. The goal of the question is to evaluate the candidate's ability to follow company protocol and sound judgement. What to look for in an answer:

  • Interest in following company standard operating procedures and policies
  • Sound judgement and deductive reasoning
  • Ability to ask for guidance when needed

Example:

"As a payroll specialist, I've seen many questionable business expenses. For example, I had an employee request payment on a parking ticket for a client visit. They didn't follow proper protocol and tried to submit it without their sales manager's authorization. I caught the discrepancy and..."

Suppose an employee is angry because they feel you haven’t calculated their payroll deductions correctly. How do you handle the situation?

A payroll specialist needs to be comfortable dealing with employees within the company and provide support and guidance regarding payroll issues. The goal of the question is to evaluate the candidate's ability to handle conflict with an employee positively and respectfully. What to look for in an answer:

  • Communication skills to address concerns and speak with employees in an understanding and respectful way
  • Ability to handle conflict and defuse volatile situations
  • Solid understanding of the calculations required for payroll deductions

Example:

"If I upset an employee about their payroll deductions, I'd let them vent and listen to their concerns. I'd then show them how I calculate deductions by going through their paystub with them step by step."

How do you deal with employees who are habitually late in submitting their work hours?

Depending on your company, you might require a payroll specialist to collect timesheets or working hours directly from employees. The goal of the question is to evaluate the candidate's process in handling late submissions that can hold up the entyre payroll process. What to look for in an answer:

  • Ability to maintain payroll deadlines
  • Interest in finding a positive solution that works for all parties
  • organisational skills to determine whose information is missing

Example:

"I've worked for one company that required me to collect timesheets at the end of every day. There were always certain individuals who were late in handing them in. When this happened, I..."

How would your payroll coworkers describe you?

A payroll specialist often works within a team of others who may provide support or complete other tasks. The goal of the question is to determine the candidate's ability to work well with others and develop positive professional relationships. Depending on the candidate's references, you might confirm their answers. What to look for in an answer:

  • Ability to work well within a team environment
  • Strong professional skills and competencies
  • Interest in providing a positive contribution to the team

Example:

"My previous coworkers would describe me as organised, hard-working, and focused. They'd say I enjoy my work and take pride in being accurate and thorough."

Because of a problem that isn’t your fault, payroll will be processed late this week. How do you handle communicating the issue company-wide?

Mistakes are inevitable, and how a candidate handles a situation speaks volumes about their work ethic and ability to be resilient and resourceful. The goal of the question is to evaluate the candidate's problem-solving and communication skills to a problem that isn't their responsibility. What to look for in an answer:

  • Ability to follow company policies and procedures in cases of critical problems
  • Interest in finding a solution to mitigate the issue
  • Communication skills to ask questions, gather information, and form correspondence

Example:

"When this happens, and it has for me, I immediately gather all information I need, such as when payroll will be processed, fees for urgent processing, and anything else I need to know. Then I approach my supervisor with several options for us to make the best decision in the interest of our employees."

What's your most significant challenge as a payroll specialist?

A successful payroll specialist must understand the full scope of duties and responsibilities within their role. The goal of the question is to evaluate the candidate's most prominent weakness or challenge in performing their tasks. What to look for in an answer:

  • Understanding of the full scope of duties and responsibilities involved in the position
  • Foundational solid understanding of payroll functions and best practises
  • Self-awareness of professional strengths and weaknesses

Example:

"My most significant challenge as a payroll specialist is staying current with changes to payroll regulations and deductions. Because these rules change constantly, I subscribe to several online newsletters that inform me of upcoming changes that I need to be aware of."

What about our company interests you as a payroll specialist?

The goal of the question is to evaluate the candidate's interest in your company and position, including the research they completed before coming to the interview. What to look for in an answer:

  • Research
  • An enthusiastic and positive attitude
  • Motivations in applying for the position

Example:

"I understand that your company is a large corporation that works across the country. I'm interested in the position because of the diversity the position works with, and I'm excited to share and expand my skills and knowledge with a group of highly committed people."

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