Payroll Tax Specialist Job Description
A Payroll Tax Specialist manages employer and employee tax contributions and reconciliations in an organization. The role reports to payroll management and is critical to ensuring the organization is compliant with tax legislation.
An accounting or payroll background is important for a Payroll Tax Specialist, with in-depth knowledge of payroll procedures, tax legislation, accounting practices, and audit requirements. This is a highly specialized role with a high degree of responsibility.
The Payroll Tax Specialist job is a mid-level position and may lead to a Senior Specialist or a management role.
What Does a Payroll Tax Specialist Typically Do?
A Payroll Tax Specialist calculates tax deductions, reconciles tax reporting, and monitors payroll compliance.
Specific tasks assigned to a Payroll Tax Specialist include:
- Calculating employee and employer tax amounts
- Filing of weekly, monthly, and quarterly tax returns and reporting
- Reconciliation of payroll tax deductions with the general ledger
- Monitoring of legislative changes
- Incorporation of legislative changes into the HRIS and payroll system
- Reporting to management
- Preparing and handing out tax certificates for employees
- Generating reports for audits
- Handling tax-related employee queries
Calculating Employee and Employer Tax Amounts
A Payroll Tax Specialist calculates all tax-related deductions for both staff and the organization and hands the calculations on to payroll staff for processing in the weekly and monthly payroll runs. The calculations are often automated, but it is the Payroll Tax Specialist’s responsibility to ensure all calculations are complete and correct.
Filing of Weekly, Monthly, and Quarterly Tax Reports
Tax returns are crucial to maintaining organizational compliance and ensuring business continuity. A Payroll Tax Specialist submits the required returns to the relevant tax authorities. The returns must be confirmed as having been received, and the Payroll Tax Specialist must ensure that all records are filed.
Reconciliation of Payroll Tax Deductions With the General Ledger
A Payroll Tax Specialist enters all tax payments into the general ledger and ensures that the ledger is balanced. This task is highly detailed and may require strenuous effort. The Payroll Tax Specialist must be committed to detail in this task.
Monitoring of Legislative Changes
Federal, state, and local legislation is subject to periodic change, and a Payroll Tax Specialist keeps track of any proposed or impending changes that may affect payroll tax calculations.
Incorporation of Legislative Changes Into the HRIS and Payroll System
Legislative changes may affect tax rates, benefits schemes, or incentives, such as car allowances.
A Payroll Tax Specialist updates the Human Resources Information System (HRIS) and the payroll system immediately to reflect any changes in the law. They must also inform all stakeholders about changes that may affect them and ensure that the changes are documented.
Reporting to Management
Management relies on up-to-date payroll reporting to calculate cash-flow, earnings, and profit forecasts, so a Payroll Tax Specialist prepares weekly, monthly, and quarterly management reports for inclusion in board packs. The reports must include all payroll tax data, tax compliance status, and employee tax payment information.
Preparing and Handing Out Tax Certificates for Employees
A Payroll Tax Specialist ensures that all employees receive their mandatory tax certificates and that all the information in them is complete and correct.
Generating Reports for Audits
Payroll is often the largest financial area to be audited for compliance, accuracy, and completeness. A Payroll Tax Specialist is responsible for ensuring that all necessary reports, documents, and receipts are ready for the annual audit process. This should be an ongoing task, requiring only that the documentation be collated at audit time.
Handling Tax-Related Employee Queries
A Payroll Tax Specialist should be the first point of contact for questions related to employees’ tax contributions. Employee queries are often demanding, so the Payroll Tax Specialist should be helpful, courteous, and willing to find solutions to employee concerns.
Payroll Tax Specialist Salary
In the U.S., a Payroll Tax Specialist will typically earn between $52,000 and $81,000 annually. The median is around $61,696.
What Is the Payroll Tax Specialist Pay Difference by Location?
Average salaries for a Payroll Tax Specialist differ by location as follows:
|San Francisco, CA||$73,483|
|New York, NY||$70,720|
What Is the Payroll Tax Specialist Pay Difference by Experience Level?
Pay for a Payroll Tax Specialist will vary according to experience as follows:
|Experience Level||Average Salary|
Payroll Tax Specialist Job Description Template
[Company Name] is looking for a dedicated, conscientious, and exacting Payroll Tax Specialist to handle all tax matters in our payroll team.
Apply if you have expert knowledge of relevant tax legislation and are committed to total quality in your work.
You will be joining a team of seasoned professionals and will contribute to making our payroll function efficient, fault-free, and dedicated to our employees’ satisfaction.
As a Payroll Tax Specialist, you will be responsible for the following tasks:
- Calculating tax deductions for payroll runs
- Filing tax returns according to legislative timelines and stipulations
- Reconciling tax payments internally
- Monitoring relevant tax legislation
- Helping employees on all tax or payroll matters
Required Skill Set
The Payroll Tax Specialist should possess the following qualifications, skills, and attributes:
- Bachelor’s degree in Accounting or HR
- At least two years’ experience working in payroll
- Expert knowledge of Excel
- Attention to detail
- Expert knowledge of common HRIS (SAP, Oracle, etc.)
- Ability to work accurately under deadline pressure
- Service orientation and collaborative attitude
Hiring Resources for Ambitious Companies
- Growing your team for the first time? Streamline payroll with a 1099 payroll software.
- New entry-level hires coming on board? Roll out time tracking software to keep them accountable.
- Help new hires hit the ground running with the best onboarding software.
- What is so good about AI recruitment software, and which companies see the most benefit?
- Business-critical documents always getting lost? Keep all your employee information neatly sorted in a centralized platform with employee record software.
- Need all your HR-related activities under one roof? Check out the best HR software solutions top companies are using.
- Attract and hire the top candidates for your vacancies with the best sourcing tools for recruiters.
- Complicated bonuses, incentives, and commissions making your payroll process difficult to manage? Ensure complete payroll accuracy with the top commission-based payroll software.