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Hourly Wage for Payroll Manager Salary in the United States

What is the highest and lowest hourly pay for Payroll Manager?

As of August 01, 2026, the average hourly rate for a Payroll Manager in the United States is $54, which translates to an annual salary of about $111,516.

However, the hourly wage can vary significantly based on several factors. Here’s a detailed look at the typical pay range per hour:

  • Top Earners (90th percentile): $63 per hour
  • Majority Range (25th-75th percentile): $48 to $58 per hour
  • Entry-Level (10th percentile): $43 per hour
Salary Factors Salary-Boosting Skills Salary by Experience Related Job Salaries Top Paying Cities Explore Related Jobs

Key Factors That Influence Payroll Manager Salaries

A Payroll Manager'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 Manager Salaries?

Experience is a primary driver of a Payroll Manager'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 IV (7+ years): $102,777
  • Payroll Team Lead (7+ years): $88,959
  • Payroll Supervisor (7+ years): $95,474
  • Payroll Manager (7+ years): $111,516
  • Payroll Director (7+ years): $160,492
Job Role Years of Experience Average Salary
Payroll Administrator IV7+ years$102,777
Payroll Team Lead7+ years$88,959
Payroll Supervisor7+ years$95,474
Payroll Manager7+ years$111,516
Payroll Director7+ years$160,492
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How Do Payroll Managers 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 Managers. For example, consider the average annual salaries in these key locations:
  • District of Columbia: $123,471.
  • California: $123,002.
  • Massachusetts: $121,363.

Top Paying Cities for Payroll Manager

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: $140,655
  • San Francisco: $139,115
  • Oakland: $136,183

What Skills Can Increase a Payroll Manager's Salary?

Demanded Skills for the Role:

  • Leadership (Mentioned in 5.99% Job Postings): Knowledge of and ability to employ effective strategies that motivate and guide other members within our business to achieve optimum results.
  • General Ledger (Mentioned in 2.36% Job Postings): Creating and keeping track of business transactions and activities to monitor financial operations.
  • Auditing (Mentioned in 1.28% Job Postings): Auditing refers to the independent examination of financial information of any entity whether profit oriented or not. It is a safeguard measure that prevents corruption.
Skills Demand Percentage
Leadership 5.99%
General Ledger 2.36%
Auditing 1.28%
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 Manager's salary.

  • Consulting: Can increase your salary by up to 6%.
  • Project Management: Can increase your salary by up to 5%.
  • Continuous Improvement: Can increase your salary by up to 4%.
Skill Salary Salary % Increase
Consulting $118,207
6%
Project Management $117,092
5%
Continuous Improvement $115,977
4%
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Payroll Manager Salary by Company Size: Startups vs. Enterprise

Payroll Manager salary potential scales significantly with company size. Data shows that Enterprise companies (5,000+ employees) pay the highest average salary at around $124,836. While startup companies pay approximate $105,608.

Payroll Manager Salary by Company Size

Company Size Employees Average Salary
Startup 1~50 $105,608
Growth Stage 51~500 $111,693
Established 501~5000 $120,551
Enterprise 5000+ $124,836

Payroll Manager Salary by Industry: Top Paying Sectors

For Payroll Manager roles, the industry you choose can affect earning potential by as much as 40% (the gap between the highest and lowest paying industries). Data shows that the Internet and Pharmaceuticals sectors offer the strongest compensation, at 20% above the average. In contrast, Payroll Manager positions in Edu., Gov't. & Nonprofit or MFG Nondurable typically offer lower base pay, as these industries often view Payroll Manager as a support function rather than a direct revenue driver.

The top paying industries for a Payroll Manager

Industry Sector Average Annual Salary Average Hourly Rate Pay vs.Avg
Internet$133,819$64.020%
Pharmaceuticals$131,589$63.018%
Healthcare$128,243$62.015%
Biotechnology$122,668$59.010%
Energy & Utilities$122,668$59.010%

How Education impacts an Payroll Manager's Salary?

Your level of education can impact your salary potential. While many Payroll Manager 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 Manager with a Bachelor's Degree is between $114,310 and $122,283.

Payroll Manager Salaries by Degree Level

Typical Education for Payroll Manager
Degree Level % of user with this level of education
No Diploma 1.3%
High School 31.5%
Associates 17.6%
Bachelors 41.9%
Masters 7.7%
Doctorate 0.1%
View as Graph

Payroll Manager Salary: Hourly Rate, Weekly Pay, and Monthly Pay

Understanding how a Payroll Manager'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
$100,188
Average $111,516/year
$121,303
$8,349
Average $9,293/month
$10,109
$1,927
Average $2,145/week
$2,333
$48
Average $54/hour
$58
Annual Salary Monthly Pay Weekly Pay Hourly Wage
75th Percentile $121,303 $10,109 $2,333 $58
Average $111,516 $9,293 $2,145 $54
25th Percentile $100,188 $8,349 $1,927 $48

Most common benefits for Payroll Manager

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

Common company salaries for Payroll Manager

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

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FAQ about Payroll Manager

1. What are the responsibilities of Payroll Manager?

Responsible for managing payroll processing operations. Establishes policies and processes that ensure accurate calculation of wages, tax withholdings, and company deductions. Interfaces between finance and human resource departments to provide accurate and useful information. Develops and produces payroll-related statistical reports. Ensures accurate and on-time governmental reporting and compliance. Oversees the activities and training of both professionals and support staff. Directs the resolution of complex issues or errors. Requires a bachelor's degree. Typically reports to a director. Manages subordinate staff in the day-to-day performance of their jobs. True first level manager. Ensures that project/department milestones/goals are met and adhering to approved budgets. Has full authority for personnel actions. Typically requires 5 years experience in the related area as an individual contributor. 1 - 3 years supervisory experience may be required. Extensive knowledge of the function and department processes.

2. What are the skills of Payroll Manager

Specify the abilities and skills that a person needs in order to carry out the specified job duties. Each competency has five to ten behavioral assertions that can be observed, each with a corresponding performance level (from one to five) that is required for a particular job.

1.)

Leadership: Knowledge of and ability to employ effective strategies that motivate and guide other members within our business to achieve optimum results.

2.)

General Ledger: Creating and keeping track of business transactions and activities to monitor financial operations.

3.)

Auditing: Auditing refers to the independent examination of financial information of any entity whether profit oriented or not. It is a safeguard measure that prevents corruption.

Where Does Our Salary Data Come From?

Salary.com salary estimates, histograms, trends, and comparisons are derived from both employer job postings and third-party data sources. We also provide multiple percentiles of salary information for your reference, click here to know Why the Salary Midpoint Formula Is Crucial to Getting Pay Equity Right. With more online, real-time compensation data than any other website, Salary.com helps you determine your exact pay target.

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