As of July 01, 2026, the average salary for a Payroll Associate II in the United States is $50,790 per year, which breaks down to an hourly rate of $24.
However, a Payroll Associate II's salary can vary significantly. Here’s a look at the typical salary range:
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A Payroll Associate II'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 Associate II'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 |
|---|---|---|
| Accounting Clerk I - Payroll | 0-1 years | $45,440 |
| Payroll Associate II | 1-3 years | $50,795 |
| Accounting Clerk III - Payroll | 3-5 years | $56,967 |
| Accounting Clerk IV - Payroll | 5-7 years | $62,642 |
| Payroll Operations Assistant Supervisor | 7+ years | $88,948 |
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 Associate IIs. For example, consider the average annual salaries in these key locations:
Demanded Skills for the Role:
| Skills | Demand Percentage |
|---|---|
| Customer Service | 5.77% |
| HRIS | 2.15% |
| Workday | 1.32% |
| Skill | Salary | Salary % Increase |
|---|---|---|
|
Process Improvement
|
$54,853 |
8%
|
|
ADP Workforce Now
|
$54,345 |
7%
|
|
Business Administration
|
$53,330 |
5%
|
|
Workday
|
$52,822 |
4%
|
|
Analytical Skills
|
$52,822 |
4%
|
|
Collaboration
|
$52,822 |
4%
|
Payroll Associate II salary potential scales significantly with company size. Data shows that Enterprise companies (5,000+ employees) pay the highest average salary at around $56,808. While startup companies pay approximate $48,043.
| Company Size | Employees | Average Salary |
|---|---|---|
| Startup | 1~50 | $48,043 |
| Growth Stage | 51~500 | $50,813 |
| Established | 501~5000 | $54,859 |
| Enterprise | 5000+ | $56,808 |
For Payroll Associate II roles, the industry you choose can affect earning potential by as much as 60% (the gap between the highest and lowest paying industries). Data shows that the Energy & Utilities and Financial Services sectors offer the strongest compensation, at 30% above the average. In contrast, Payroll Associate positions in Transportation or Retail & Wholesale typically offer lower base pay, as these industries often view Payroll Associate II as a support function rather than a direct revenue driver.
| Industry Sector | Average Annual Salary | Average Hourly Rate | Pay vs.Avg |
|---|---|---|---|
| Energy & Utilities | $66,027 | $32.0 | 30% |
| Financial Services | $66,027 | $32.0 | 30% |
| Internet | $66,027 | $32.0 | 30% |
| Pharmaceuticals | $66,027 | $32.0 | 30% |
| Software & Networking | $66,027 | $32.0 | 30% |
Your level of education can impact your salary potential. While many Payroll Associate IIs 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 Associate II with a High School Diploma or Technical Certificate is between $51,886 and $55,435).
Payroll Associate II Salaries by Degree Level
| Degree Level | % of user with this level of education |
|---|---|
| No Diploma | 1.8% |
| High School | 43.6% |
| Associates | 24.1% |
| Bachelors | 27.9% |
| Masters | 2.5% |
| Doctorate | 0.1% |
Understanding how a Payroll Associate II'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 July 01, 2026For a Payroll Associate II, the most direct path to higher earnings is advancing to the Accounting Clerk III - Payroll role. This promotion typically comes with a significant pay increase, bringing the average annual salary to $57,000 - a projected growth of 12% over your current level.
Salaries for a Payroll Associate II can change over time, reflecting shifts in market demand and the overall economy. The median salary decreased from $43,820 in 2023 to around $43,657 in 2025, reflecting changes in demand, location, experience, and the wider economy. For a detailed analysis of Payroll Associate II salary trends, .
| Year | Average Annual Salary |
|---|---|
| 2022 |
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|
| 2023 | $43,820 |
| 2024 | $43,997 |
| 2025 | $43,657 |
| 2026 |
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|
| 2027 |
View More
|
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The Energy & Utilities industry offers the highest average compensation for Payroll Associate II roles, with salaries approximately 30% above the market median.
The highest paid hourly rate for a Payroll Associate can be calculated from the maximum salary of $62,990. Dividing this by the standard 2,080 working hours in a year gives an hourly rate of approximately $30.25. This reflects the competitive compensation within the payroll profession.
The highest paying job in payroll is typically a Payroll Consultant, with salaries ranging from $69,000 to $148,000 per year. Other roles include Payroll Advisor ($50,000-$95,000), Payroll Officer ($48,000-$80,500), and Senior Payroll Specialist. For a Payroll Associate, the salary ranges from $49,290 to $62,990, with a midpoint of $55,590.
A good salary in the USA varies by location and job role. For a Payroll Associate, the salary range is approximately $49,290 to $62,990, with a midpoint of $55,590. This range reflects the average compensation for similar positions across various states, highlighting the importance of industry and regional factors in salary determination.
The highest position in payroll is the Director of Payroll. This senior leadership role oversees the entire payroll function within an organization. Salaries for this position typically range from $49,290 to $62,990, with a mid-range salary of $55,590, reflecting the level of responsibility and expertise required.
The highest salary for a Payroll Associate is $62,990. The salary range typically starts at a minimum of $49,290, with a mid-level salary around $55,590. This reflects the varying levels of experience and responsibility within payroll roles.
While there is no universally defined percentage for a good Payroll to Revenue Ratio, a commonly cited guideline is that labor costs should ideally account for 15-30% of total revenue. For a Payroll Associate, salaries range from $49,290 to $62,990, which can help businesses assess their payroll expenses in relation to overall revenue.
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.)
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