As of August 01, 2026, the average salary for a Payroll Team Lead in the United States is $88,959 per year, which breaks down to an hourly rate of $43.
However, a Payroll Team Lead's salary can vary significantly. Here’s a look at the typical salary range:
Payroll Team Lead Salaries by Percentile
| Annual Salary |
Monthly Pay |
Weekly Pay |
Hourly Wage |
|
|---|---|---|---|---|
| 75th Percentile | $96,785 | $8,065 | $1,861 | $47 |
| Average | $88,959 | $7,413 | $1,711 | $43 |
| 25th Percentile | $77,649 | $6,471 | $1,493 | $37 |
A Payroll Team Lead'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.
Experience is a primary driver of a Payroll Team Lead'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:
| Job Role | Years of Experience | Average Salary |
|---|---|---|
| Payroll Administrator III | 4-7 years | $84,657 |
| 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 |
Demanded Skills for the Role:
| Skills | Demand Percentage |
|---|---|
| Analysis | 4.39% |
| Data Entry | 2.63% |
| Auditing | 0.88% |
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 Team Lead's salary.
| Skill | Salary | Salary % Increase |
|---|---|---|
| Legal Compliance | $142,334 | |
| People Management | $112,088 | |
| Accounting and Reporting | $111,199 |
Payroll Team Lead salary potential scales significantly with company size. Data shows that Enterprise companies (5,000+ employees) pay the highest average salary at around $99,584. While startup companies pay approximate $84,246.
| Company Size | Employees | Average Salary |
|---|---|---|
| Startup | 1~50 | $84,246 |
| Growth Stage | 51~500 | $89,100 |
| Established | 501~5000 | $96,166 |
| Enterprise | 5000+ | $99,584 |
Understanding how a Payroll Team Lead'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.
| Annual Salary | Monthly Pay | Weekly Pay | Hourly Wage | |
|---|---|---|---|---|
| 75th Percentile | $96,785 | $8,065 | $1,861 | $47 |
| Average | $88,959 | $7,413 | $1,711 | $43 |
| 25th Percentile | $77,649 | $6,471 | $1,493 | $37 |
Next Role
Advancement
For a Payroll Team Lead, the most direct path to higher earnings is advancing to the Payroll Supervisor role. This promotion typically comes with a significant pay increase, bringing the average annual salary to $95,474 - a projected growth of 7% over your current level.
Salaries for a Payroll Team Lead can change over time, reflecting shifts in market demand and the overall economy. The median salary decreased from $70,554 in 2023 to around $70,205 in 2025, reflecting changes in demand, location, experience, and the wider economy. For a detailed analysis of Payroll Team Lead salary trends, .
| Year | Average Annual Salary |
|---|---|
| 2022 | View More |
| 2023 | $70,554 |
| 2024 | $70,705 |
| 2025 | $70,205 |
| 2026 |
View More
|
| 2027 |
View More
|
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A Payroll Team Lead'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 Team Lead earns the most in San Jose, CA, where the annual salary of a Payroll Team Lead is $112,204.
The highest pay for Payroll Team Lead is $103,910.
The lowest pay for Payroll Team Lead is $67,352.
Responsible for the coordination of payroll processing operations for a team. Monitors workflow, team assignments, and processing deadlines. Verifies accurate calculation of wages, tax withholding, and company deductions. Assists team members with resolving errors or responding to inquiries. May prepare reports on employee pay, commissions and bonuses; vacation, sick, disability and workers compensation leave; taxes, withholding, etc. Coordinates the distribution of paychecks and direct deposit programs. Provides training to team on policies, regulations, and processes. May require a bachelor's degree. Typically reports to a supervisor. Supervises a small group of para-professional staff in an organization characterized by highly transactional or repetitive processes. Contributes to the development of processes and procedures. Typically requires 3 years experience in the related area as an individual contributor. Thorough knowledge of functional area under supervision.
The Aerospace & Defense industry offers the highest average compensation for Payroll Team Lead roles, with salaries approximately 50% above the market median.
Salary.com provides salary estimates, histograms, trends, and comparisons using data from employer job postings and third-party sources.
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