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Payroll Administrator I Salary in the United States

How much does a Payroll Administrator I make in the United States?

As of August 01, 2026, the average salary for a Payroll Administrator I in the United States is $62,503 per year, which breaks down to an hourly rate of $30.

However, a Payroll Administrator I's salary can vary significantly. Here’s a look at the typical salary range:

  • Top Earners (90th percentile): $71,738
  • Majority Range (25th-75th percentile): $56,272 to $67,337
  • Entry-Level (10th percentile): $50,599
Salary Factors Salary-Boosting Skills Salary by Experience Related Job Salaries Top Paying Cities Explore Related Jobs

Key Factors That Influence Payroll Administrator I Salaries

A Payroll Administrator I'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 and company size can directly affect your earning potential.

How Experience Level Affects Payroll Administrator I Salaries?

Experience is a primary driver of a Payroll Administrator I'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:

  • Payroll Administrator I (0-2 years): $62,503
  • Payroll Administrator II (2-4 years): $73,172
  • Payroll Administrator III (4-7 years): $84,657
  • Payroll Administrator IV (7+ years): $102,777
  • Payroll Team Lead (7+ years): $88,959
Job Role Years of Experience Average Salary
Payroll Administrator I0-2 years$62,503
Payroll Administrator II2-4 years$73,172
Payroll Administrator III4-7 years$84,657
Payroll Administrator IV7+ years$102,777
Payroll Team Lead7+ years$88,959
View as Graph

How Do Payroll Administrator Is Salaries Vary from State to State?

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 Administrator Is. For example, consider the average annual salaries in these key locations:
  • District of Columbia: $69,203.
  • California: $68,941.
  • Massachusetts: $68,022.

Top Paying Cities for Payroll Administrator I

Salaries can also vary between different cities. Major metropolitan areas or cities with a high demand for technicians often offer more competitive pay. Here are a few examples of average annual salaries in different U.S. cities:

  • San Jose: $78,835
  • San Francisco: $77,972
  • Oakland: $76,329

What Skills Can Increase a Payroll Administrator I's Salary?

Demanded Skills for the Role:

  • Customer Service (Mentioned in 5.73% Job Postings): Customer service is the provision of service to customers before, during and after a purchase. The perception of success of such interactions is dependent on employees "who can adjust themselves to the personality of the guest". Customer service concerns the priority an organization assigns to customer service relative to components such as product innovation and pricing. In this sense, an organization that values good customer service may spend more money in training employees than the average organization or may proactively interview customers for feedback. From the point of view of an overall sales process engineering effort, customer service plays an important role in an organization's ability to generate income and revenue. From that perspective, customer service should be included as part of an overall approach to systematic improvement. One good customer service experience can change the entire perception a customer holds towards the organization.
  • Data Entry (Mentioned in 2.45% Job Postings): Transcribing information into an electronic medium such as a computer or other electronic device.
  • Business Administration (Mentioned in 1.2% Job Postings): It is the management of all aspects of a business's performance, decisions, and organization. It includes the day to day operations, aspects including finances and human resources, and ensures the company stays aligned to the goal or mission.
Skills Demand Percentage
Customer Service 5.73%
Data Entry 2.45%
Business Administration 1.2%
See More Skills

What skills can make your compensation higher?

Mastering certain specialized skills can lead to a significant increase in pay. Here are examples of skills and the potential impact they can have on a Payroll Administrator I's salary.

  • ADP Workforce Now: Can increase your salary by up to 17%.
  • HRIS Systems: Can increase your salary by up to 8%.
  • Verbal Communication: Can increase your salary by up to 7%.
Skill Salary Salary % Increase
ADP Workforce Now $73,129
17%
HRIS Systems $67,503
8%
Verbal Communication $66,878
7%
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Payroll Administrator I Salary by Company Size: Startups vs. Enterprise

Payroll Administrator I salary potential scales significantly with company size. Data shows that Enterprise companies (5,000+ employees) pay the highest average salary at around $69,968. While startup companies pay approximate $59,192.

Payroll Administrator I Salary by Company Size

Company Size Employees Average Salary
Startup 1~50 $59,192
Growth Stage 51~500 $62,602
Established 501~5000 $67,567
Enterprise 5000+ $69,968

Payroll Administrator I Salary by Industry: Top Paying Sectors

For Payroll Administrator I roles, the industry you choose can affect earning potential by as much as 20% (the gap between the highest and lowest paying industries). Data shows that the Aerospace & Defense and Biotechnology sectors offer the strongest compensation, at 10% above the average. In contrast, Payroll Administrator positions in Hospitality & Leisure or Healthcare typically offer lower base pay, as these industries often view Payroll Administrator I as a support function rather than a direct revenue driver.

The top paying industries for a Payroll Administrator I

Industry Sector Average Annual Salary Average Hourly Rate Pay vs.Avg
Aerospace & Defense$68,753$33.010%
Biotechnology$68,753$33.010%
Business Services$68,753$33.010%
Chemicals$68,753$33.010%
Construction$68,753$33.010%

Payroll Administrator I Salary: Hourly Rate, Weekly Pay, and Monthly Pay

Understanding how a Payroll Administrator I'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 August 01, 2026
$56,272
Average $62,503/year
$67,337
$4,689
Average $5,209/month
$5,611
$1,082
Average $1,202/week
$1,295
$27
Average $30/hour
$32
Annual Salary Monthly Pay Weekly Pay Hourly Wage
75th Percentile $67,337 $5,611 $1,295 $32
Average $62,503 $5,209 $1,202 $30
25th Percentile $56,272 $4,689 $1,082 $27

Payroll Administrator I Salary Growth & Career Path

Payroll Administrator I

Next Role

Advancement

For a Payroll Administrator I, the most direct path to higher earnings is advancing to the Payroll Administrator II role. This promotion typically comes with a significant pay increase, bringing the average annual salary to $73,172 - a projected growth of 17% over your current level.

Most common benefits for Payroll Administrator I

  • Social Security
  • 401 (k)
  • Disability
  • Healthcare
  • Pension
  • Time Off (days)

Common company salaries for Payroll Administrator I

Here are companies hiring for Payroll Administrator I and their salaries, click below for more details.

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FAQ about Payroll Administrator I

1. Where can a Payroll Administrator I earn the most?

A Payroll Administrator I'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 Administrator I earns the most in San Jose, CA, where the annual salary of a Payroll Administrator I is $78,835.

2. What is the highest pay for Payroll Administrator I?

The highest pay for Payroll Administrator I is $71,738.

3. What is the lowest pay for Payroll Administrator I?

The lowest pay for Payroll Administrator I is $50,599.

4. What are the responsibilities of Payroll Administrator I?

Responsible for the accurate preparation, documentation, distribution and reconciliation of payroll and the administration of the payroll system. Reviews the computation of pay and associated deductions for accuracy. Maintains up-to-date knowledge of city, state, provincial, local, and federal legislation affecting payroll; understands and follows applicable provisions. Prepares required tax filings and other reporting. May coordinate payroll processing with an outside service provider. Responds to and resolves any inquiries regarding paychecks or payroll reporting. Ensures payroll issues are escalated and resolved promptly. May require an associate degree or equivalent. Typically reports to a manager or head of a unit/department. Work is closely managed. Works on projects/matters of limited complexity in a support role. Typically requires 0-2 years of related experience.

5. What industry pays the highest salary for Payroll Administrator I?

The Aerospace & Defense industry offers the highest average compensation for Payroll Administrator I roles, with salaries approximately 10% above the market median.

Where Does Our Salary Data Come From?

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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