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Payroll Clerk III Salary in the United States

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

As of August 01, 2026, the average salary for a Payroll Clerk III in the United States is $56,971 per year, which breaks down to an hourly rate of $27.

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

  • Top Earners (90th percentile): $67,895
  • Majority Range (25th-75th percentile): $51,219 to $62,689
  • Entry-Level (10th percentile): $45,982
Salary Factors Salary-Boosting Skills Salary by Experience Related Job Salaries Top Paying Cities Explore Related Jobs

Key Factors That Influence Payroll Clerk III Salaries

A Payroll Clerk III'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 III Salaries?

Experience is a primary driver of a Payroll Clerk III'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 IIIs 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 IIIs. For example, consider the average annual salaries in these key locations:
  • District of Columbia: $63,078.
  • California: $62,839.
  • Massachusetts: $62,002.

Top Paying Cities for Payroll Clerk III

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: $71,858
  • San Francisco: $71,071
  • Oakland: $69,573

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

Demanded Skills for the Role:

  • Customer Service (Mentioned in 5.95% 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 2.23% 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 1.3% 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 5.95%
HRIS 2.23%
Workday 1.3%
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 III's salary.

  • ADP Workforce Now: Can increase your salary by up to 6%.
  • Collaboration: Can increase your salary by up to 5%.
  • Leadership: Can increase your salary by up to 5%.
Skill Salary Salary % Increase
ADP Workforce Now $60,389
6%
Collaboration $59,820
5%
Leadership $59,820
5%
Get Latest Data

Payroll Clerk III Salary by Company Size: Startups vs. Enterprise

Payroll Clerk III salary potential scales significantly with company size. Data shows that Enterprise companies (5,000+ employees) pay the highest average salary at around $63,776. While startup companies pay approximate $53,953.

Payroll Clerk III Salary by Company Size

Company Size Employees Average Salary
Startup 1~50 $53,953
Growth Stage 51~500 $57,061
Established 501~5000 $61,587
Enterprise 5000+ $63,776

Payroll Clerk III Salary by Industry: Top Paying Sectors

For Payroll Clerk III roles, the industry you choose can affect earning potential by as much as 70% (the gap between the highest and lowest paying industries). Data shows that the Financial Services and Internet 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 III as a support function rather than a direct revenue driver.

The top paying industries for a Payroll Clerk III

Industry Sector Average Annual Salary Average Hourly Rate Pay vs.Avg
Financial Services$74,062$36.030%
Internet$71,214$34.025%
Biotechnology$68,365$33.020%
Energy & Utilities$65,517$31.015%
Pharmaceuticals$65,517$31.015%

How Education impacts an Payroll Clerk III's Salary?

Your level of education can impact your salary potential. While many Payroll Clerk III 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 III with a Bachelor's Degree is between $61,593 and $65,511.

Payroll Clerk III Salaries by Degree Level

Typical Education for Payroll Clerk III
Degree Level % of user with this level of education
No Diploma 1.6%
High School 49.0%
Associates 22.4%
Bachelors 25.0%
Masters 1.6%
Doctorate 0.0%
View as Graph

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

Understanding how a Payroll Clerk III'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
$51,219
Average $56,971/year
$62,689
$4,268
Average $4,748/month
$5,224
$985
Average $1,096/week
$1,206
$25
Average $27/hour
$30
Annual Salary Monthly Pay Weekly Pay Hourly Wage
75th Percentile $62,689 $5,224 $1,206 $30
Average $56,971 $4,748 $1,096 $27
25th Percentile $51,219 $4,268 $985 $25

Payroll Clerk III Salary Growth & Career Path

Payroll Clerk III

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Advancement

For a Payroll Clerk III, the most direct path to higher earnings is advancing to the Payroll Clerk IV role. This promotion typically comes with a significant pay increase, bringing the average annual salary to $62,644 - a projected growth of 10% over your current level.

Most common benefits for Payroll Clerk III

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

Common company salaries for Payroll Clerk III

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

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FAQ about Payroll Clerk III

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

A Payroll Clerk III'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 III earns the most in San Jose, CA, where the annual salary of a Payroll Clerk III is $71,858.

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

The highest pay for Payroll Clerk III is $67,895.

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

The lowest pay for Payroll Clerk III is $45,982.

4. What are the responsibilities of Payroll Clerk III?

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 independently within established procedures associated with the specific job function. Has gained proficiency in multiple competencies relevant to the job. Typically requires 3-5 years of related experience.

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

The Financial Services industry offers the highest average compensation for Payroll Clerk III 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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