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Payroll Clerk II Salary in the United States

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

As of August 01, 2026, the average salary for a Payroll Clerk II in the United States is $50,796 per year, which breaks down to an hourly rate of $24.

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

  • Top Earners (90th percentile): $61,894
  • Majority Range (25th-75th percentile): $46,295 to $56,605
  • Entry-Level (10th percentile): $42,197
Salary Factors Salary-Boosting Skills Salary by Experience Related Job Salaries Top Paying Cities Explore Related Jobs

Key Factors That Influence Payroll Clerk II Salaries

A Payroll Clerk 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 Clerk II Salaries?

Experience is a primary driver of a Payroll Clerk 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 Clerk I (0-1 years): $45,438
  • Payroll Clerk II (1-3 years): $50,796
  • Payroll Clerk III (3-5 years): $56,971
  • Payroll Clerk IV (5-7 years): $62,644
  • Payroll Team Lead (7+ years): $88,959
Job Role Years of Experience Average Salary
Payroll Clerk I0-1 years$45,438
Payroll Clerk II1-3 years$50,796
Payroll Clerk III3-5 years$56,971
Payroll Clerk IV5-7 years$62,644
Payroll Team Lead7+ years$88,959
View as Graph

How Do Payroll Clerk IIs 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 Clerk IIs. For example, consider the average annual salaries in these key locations:
  • District of Columbia: $56,241.
  • California: $56,028.
  • Massachusetts: $55,281.

Top Paying Cities for Payroll Clerk II

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: $64,069
  • San Francisco: $63,368
  • Oakland: $62,032

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

Demanded Skills for the Role:

  • Customer Service (Mentioned in 5.77% 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.
  • HRIS (Mentioned in 2.15% Job Postings): HRIS is a management system designed specifically to provide managers with information to make HR decisions. Is a system that lets you keep track of all your employees and information about them.
  • Workday (Mentioned in 1.32% Job Postings): A cloud-based human resource management software system that unifies a wide range of HR functionality into a single system.
Skills Demand Percentage
Customer Service 5.77%
HRIS 2.15%
Workday 1.32%
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 Clerk II's salary.

  • Process Improvement: Can increase your salary by up to 8%.
  • ADP Workforce Now: Can increase your salary by up to 7%.
  • Business Administration: Can increase your salary by up to 5%.
Skill Salary Salary % Increase
Process Improvement $54,860
8%
ADP Workforce Now $54,352
7%
Business Administration $53,336
5%
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Payroll Clerk II Salary by Company Size: Startups vs. Enterprise

Payroll Clerk II salary potential scales significantly with company size. Data shows that Enterprise companies (5,000+ employees) pay the highest average salary at around $56,863. While startup companies pay approximate $48,105.

Payroll Clerk II Salary by Company Size

Company Size Employees Average Salary
Startup 1~50 $48,105
Growth Stage 51~500 $50,877
Established 501~5000 $54,911
Enterprise 5000+ $56,863

Payroll Clerk II Salary by Industry: Top Paying Sectors

For Payroll Clerk 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 Clerk positions in Transportation or Retail & Wholesale typically offer lower base pay, as these industries often view Payroll Clerk II as a support function rather than a direct revenue driver.

The top paying industries for a Payroll Clerk II

Industry Sector Average Annual Salary Average Hourly Rate Pay vs.Avg
Energy & Utilities$66,035$32.030%
Financial Services$66,035$32.030%
Internet$66,035$32.030%
Pharmaceuticals$66,035$32.030%
Software & Networking$66,035$32.030%

How Education impacts an Payroll Clerk II's Salary?

Your level of education can impact your salary potential. While many Payroll Clerk 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 Clerk II with a Bachelor's Degree is between $52,655 and $56,252.

Payroll Clerk II Salaries by Degree Level

Typical Education for Payroll Clerk II
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%
View as Graph

Payroll Clerk II Salary: Hourly Rate, Weekly Pay, and Monthly Pay

Understanding how a Payroll Clerk 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 August 01, 2026
$46,295
Average $50,796/year
$56,605
$3,858
Average $4,233/month
$4,717
$890
Average $977/week
$1,089
$22
Average $24/hour
$27
Annual Salary Monthly Pay Weekly Pay Hourly Wage
75th Percentile $56,605 $4,717 $1,089 $27
Average $50,796 $4,233 $977 $24
25th Percentile $46,295 $3,858 $890 $22

Payroll Clerk II Salary Growth & Career Path

Payroll Clerk II

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Advancement

For a Payroll Clerk II, the most direct path to higher earnings is advancing to the Payroll Clerk III role. This promotion typically comes with a significant pay increase, bringing the average annual salary to $56,971 - a projected growth of 12% over your current level.

Most common benefits for Payroll Clerk II

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

Common company salaries for Payroll Clerk II

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

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FAQ about Payroll Clerk II

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

A Payroll Clerk 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 Clerk II earns the most in San Jose, CA, where the annual salary of a Payroll Clerk II is $64,069.

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

The highest pay for Payroll Clerk II is $61,894.

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

The lowest pay for Payroll Clerk II is $42,197.

4. What are the responsibilities of Payroll Clerk II?

Prepares and processes payroll and associated information. Collates and verifies data and inputs into the payroll system. Updates payroll records and processes routine changes to employee records. Performs basic reconciliation and auditing processes during each pay cycle. Responds to pay-related inquiries from staff. Researches and resolves errors or omissions. May prepare and submit reports and forms required by IRS or other regulatory bodies. Follows all processing procedures, adheres to policies, and maintains confidentiality. Typically requires a high school diploma or equivalent. Typically reports to a supervisor. Works under moderate supervision. Gaining or has attained full proficiency in a specific area of discipline. Typically requires 1-3 years of related experience.

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

The Energy & Utilities industry offers the highest average compensation for Payroll Clerk 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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