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Payroll Administrator II Salary in the United States

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

As of September 01, 2026, the average salary for a Payroll Administrator II in the United States is $73,178 per year, which breaks down to an hourly rate of $35.

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

  • Top Earners (90th percentile): $85,982
  • Majority Range (25th-75th percentile): $66,614 to $79,880
  • Entry-Level (10th percentile): $60,638
Salary Factors Salary-Boosting Skills Salary by Experience Related Job Salaries Top Paying Cities Explore Related Jobs

Key Factors That Influence Payroll Administrator II Salaries

A Payroll Administrator 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.

How Experience Level Affects Payroll Administrator II Salaries?

Experience is a primary driver of a Payroll Administrator 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:

  • Payroll Administrator I (0-2 years): $62,505
  • Payroll Administrator II (2-4 years): $73,178
  • Payroll Administrator III (4-7 years): $84,664
  • Payroll Administrator IV (7+ years): $102,789
  • Payroll Team Lead (7+ years): $88,971
Job Role Years of Experience Average Salary
Payroll Administrator I0-2 years$62,505
Payroll Administrator II2-4 years$73,178
Payroll Administrator III4-7 years$84,664
Payroll Administrator IV7+ years$102,789
Payroll Team Lead7+ years$88,971
View as Graph

How Do Payroll Administrator II 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 IIs. For example, consider the average annual salaries in these key locations:
  • District of Columbia: $81,023.
  • California: $80,715.
  • Massachusetts: $79,640.

Top Paying Cities for Payroll Administrator IIs

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: $92,299
  • San Francisco: $91,289
  • Oakland: $89,365

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

Demanded Skills for the Role:

  • Customer Service (Mentioned in 5.71% 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 2.43% Job Postings): Transcribing information into an electronic medium such as a computer or other electronic device.
  • Child Support (Mentioned in 1.19% Job Postings): Is a designed to maintain a child's living standard and ensure all their basic needs are covered. The money can be used to pay for necessities like: Shelter and utilities of the child's primary home to ensure they're living in a safe environment.
Skills Demand Percentage
Customer Service 5.71%
Data Entry 2.43%
Child Support 1.19%
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 II's salary.

  • Leadership: Can increase your salary by up to 5%.
  • PeopleSoft: Can increase your salary by up to 4%.
  • Collaboration: Can increase your salary by up to 4%.
Skill Salary Salary % Increase
Leadership $76,837
5%
PeopleSoft $76,105
4%
Collaboration $76,105
4%
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Payroll Administrator II Salary by Company Size: Startups vs. Enterprise

Payroll Administrator II salary potential scales significantly with company size. Data shows that Enterprise companies (5,000+ employees) pay the highest average salary at around $81,779. While startup companies pay approximate $69,177.

Payroll Administrator II Salary by Company Size

Company Size Employees Average Salary
Startup 1~50 $69,177
Growth Stage 51~500 $73,162
Established 501~5000 $78,969
Enterprise 5000+ $81,779

Payroll Administrator II Salary by Industry: Top Paying Sectors

For Payroll Administrator 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 Healthcare and Construction sectors offer the strongest compensation, at 30% above the average. In contrast, Payroll Administrator positions in Hospitality & Leisure or Edu., Gov't. & Nonprofit typically offer lower base pay, as these industries often view Payroll Administrator II as a support function rather than a direct revenue driver.

The top paying industries for a Payroll Administrator II

Industry Sector Average Annual Salary Average Hourly Rate Pay vs.Avg
Healthcare$95,131$46.030%
Construction$87,814$42.020%
Aerospace & Defense$84,155$40.015%
Business Services$81,959$39.012%
Insurance$78,300$38.07%

How Education impacts a Payroll Administrator II's Salary?

Your level of education can impact your salary potential. While many Payroll Administrator II enter the field with a Bachelor's Degree, higher education can lead to more specialized and higher-paying roles.

According to our 100% employer-reported salary data, the median salary for an Payroll Administrator II with a Bachelor's Degree is between $69,570 and $73,725.

Payroll Administrator II Salaries by Degree Level

Typical Education for Payroll Administrator II
Degree Level % of user with this level of education
No Diploma 1.8%
High School 39.6%
Associates 21.9%
Bachelors 32.8%
Masters 3.8%
Doctorate 0.1%
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Payroll Administrator II Salary: Hourly Rate, Weekly Pay, and Monthly Pay

Understanding how a Payroll Administrator 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 September 01, 2026
$66,614
Average $73,178/year
$79,880
$5,551
Average $6,098/month
$6,657
$1,281
Average $1,407/week
$1,536
$32
Average $35/hour
$38
Annual Salary Monthly Pay Weekly Pay Hourly Wage
75th Percentile $79,880 $6,657 $1,536 $38
Average $73,178 $6,098 $1,407 $35
25th Percentile $66,614 $5,551 $1,281 $32

Payroll Administrator II Salary Growth & Career Path

Payroll Administrator II

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Advancement

For a Payroll Administrator II, the most direct path to higher earnings is advancing to the Payroll Administrator III role. This promotion typically comes with a significant pay increase, bringing the average annual salary to $84,664 - a projected growth of 16% over your current level.

Most common benefits for Payroll Administrator II

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

Common company salaries for Payroll Administrator II

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

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FAQ about Payroll Administrator II

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

A Payroll Administrator II'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 II earns the most in San Jose, CA, where the annual salary of a Payroll Administrator II is $92,299.

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

The highest pay for Payroll Administrator II is $85,982.

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

The lowest pay for Payroll Administrator II is $60,638.

4. What are the responsibilities of Payroll Administrator II?

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. Typically requires an associate degree or equivalent. Typically reports to a manager or head of a unit/department. Occasionally directed in several aspects of the work. Gaining exposure to some of the complex tasks within the job function. Typically requires 2-4 years of related experience.

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

The Healthcare industry offers the highest average compensation for Payroll Administrator II roles, with salaries approximately 30% 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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