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Accountancy

How to Start a Career in Payroll (Even With No Experience)

Payroll is one of the most important functions of any company, ensuring that employees are paid correctly and on time. 

Even so, it can also be tricky to break into payroll as a profession, especially if you have little or no previous experience in similar roles. 

In this blog, we’ll outline what payroll involves, what it’s like as a career, and how to get started in payroll – even if you’re new to the field. 

What does payroll do? 

The primary duty of payroll is making sure that company employees’ salaries are paid properly and on time. 

However, payroll is also responsible for a whole host of other duties relating to salary administration and management, all of which are essential in making sure that businesses run smoothly and stay compliant with HMRC and government guidelines. 

These include the following:

  • Calculating salary deductions and additions such as pension contributions, statutory pay or bonuses
  • Submitting regular reports to HMRC to ensure business compliance 
  • Regularly paying tax owed to HMRC
  • Investigating payroll discrepancies and liaising with HR and finance teams to ensure accuracy 
  • Updating payroll and financial policies to keep in line with government changes
  • Correctly maintaining records and handling payroll queries from employees 

Most payroll staff will use dedicated software such as Sage, BrightPay or Iris to help manage payroll administration. For this reason, many entry-level roles will typically require good IT skills as a baseline requirement. 

What are some of the key skills required in payroll? 

Payroll can be quite a challenging profession, requiring good levels of focus and attention to detail to perform well. 

Some of the most important core skills you’ll require for payroll positions include: 

  • Strong numerical and maths skills
  • Good organisational skills and attention to detail
  • Good verbal and written communication
  • Computer literacy, particularly working with spreadsheet software such as Excel
  • The ability to work towards deadlines 
  • Problem-solving and the ability to think on your feet 

You should also be comfortable working with financial and tax legislation, some of which might be complex.  

Do you need qualifications to work in payroll? 

Generally speaking, you won’t need any formal qualifications to start a career in payroll. 

However, vacancies may typically ask for some hands-on experience working in payroll or related positions such as bookkeeping, accounting or HR. They may also require you to be familiar with payroll software. 

Some entry-level roles, on the other hand, may only ask for fairly loose skills criteria where the only requirement is that you possess the right skills to learn and adapt into the role quickly. 

If you do want to enrol on a course or accredited qualification as an initial step, though, there are a few options available to you. Popular payroll courses you might want to consider include: 

  • ICB & Sage Level 2 Certificate in Payroll Administration: Awarded by the Institute of Certified Bookkeepers (ICB), this all-in-one beginner’s course provides a solid introduction to payroll fundamentals and hands-on training with Sage, one of the most popular pieces of accounting software.
  • ICB & Sage Level 2 and 3 Combined Course in Payroll: Another ICB course for beginners with Sage software training included. However, this combined course contains additional training to help fast-track you on a pathway to payroll management.
  • CIPP Payroll Technician Certificate: Provided by the Chartered Institute of Payroll Professionals (CIPP), the Payroll Technician Certificate is well-suited for newcomers to payroll or those who want to solidify their understanding of payroll processes.
  • Payroll Centre Payroll Assistant Course: This foundational course is managed by The Payroll Centre, who provide end-to-end training and assessment for payroll professionals. Aimed at those with little to no payroll experience, this course awards the Payroll Centre Payroll Assistant Certificate in Basic Payroll Competence.
  • Pitman Training Payroll Award: A practical entry-level course covering fundamentals of payroll, Excel and Sage, which awards 60 CPD points upon successful completion. 

Is payroll a good career path? 

Payroll can be a demanding yet satisfying career pathway if you have excellent attention to detail and are comfortable working with numbers. 

When starting off in payroll, you’ll generally be working in an entry-level role as a Payroll Clerk, Administrator or Assistant, where you’ll handle basic tasks relating to managing and administering payroll. Entry-level payroll positions typically start at around £24,000 per annum. 

From there, you can progress into more senior roles such as Payroll Specialist, Manager or Supervisor, all of which can pay up to around £40,000. Going even further, you could even move into senior leadership positions like Payroll Lead or Director, where salaries can sit around £65,000 or higher. 

Alternatively, working in payroll might allow you to transition into related fields such as accounting, HR or pensions management, given that these roles also require many of the same skills and competencies as payroll. 

A big advantage of payroll is that roles are almost always in demand, given that most businesses need staff responsible for managing and distributing employee salaries. While this duty may be carried out by HR in some smaller organisations, many mid- to large-sized businesses have dedicated payroll teams or specialists to handle this responsibility. 

However, it’s important to note that payroll can be quite a demanding role, with specialists needing to adhere strictly to deadlines and legislative changes, as well as problem-solve quickly if things go wrong. 

Though, if you thrive under pressure and relish the opportunity to work in a truly vital function at the heart of a business then payroll may be a great match for you and your skills.

How to Start a Career in Payroll  

If you don’t have any previous experience in payroll, that’s okay! There are multiple routes into payroll as a career, including things you can do to strengthen your skills and CV to help make the transition. 

Enrol on a Dedicated Payroll Course 

One of the best ways to set yourself up for a career in payroll is to enrol on a dedicated payroll course. 

These courses are often targeted to those who have little to no experience working in payroll and can give you a solid grounding in the fundamentals of payroll processes. Some, such as the ICB & Sage Level 2 Certificate in Payroll Administration, also include additional training for accounting software such as Sage to enhance your understanding of how payroll is administered in actual roles. 

Many payroll courses are also offered online or using flexible enrolment models, making it easy to fit around your current work or home life commitments. 

Given that many payroll jobs will typically ask for some prior knowledge or experience of payroll and payroll software, enrolling in a dedicated course can be an excellent and efficient all-in-one solution to getting your foot on the payroll career ladder. 

Secure an Apprenticeship  

If you want to earn while learning how to become a payroll administrator while on the job, you may be able to secure an apprenticeship.  

Both private and public sector companies offer Payroll Administrator Level 3 Advanced Apprenticeships in the UK, which allows you to earn a wage while gaining valuable work experience in the role as well as dedicated training during a portion of your working week. 

The Level 3 Payroll Administrator apprenticeship is specifically aimed at those who have no experience in the role or lack formal qualifications, which makes it ideal for newcomers.  

Some apprenticeship programmes may require you to have some GCSE passing grades (including English and Maths) as an entry requirement, but others may not have any formal entry requirements at all. 

However, note that apprenticeships typically don’t pay a full living wage at first and may require a commitment of a couple of years or more to complete, compared to a few months on an entry-level payroll course. 

Leverage Your Transferable Skills 

If you already have some work experience in an adjacent field or have relevant transferable skills from another role, it may be possible for you to transition straight into an entry-level payroll position from another role.

Typical adjacent fields where this may apply can include accounting, bookkeeping, HR or other forms of business administration or management. Previous experience in these roles can be beneficial for a payroll position as there’ll likely be crossover of key skills and competencies between the two positions. 

Similarly, any other relevant transferable skills from another role can be suitable to set you up for a payroll position, such as experience working with numbers, finance organisation or time management. 

Fundamentally, employers will want to know that you have the right mindset and competencies to take on a payroll position even without relevant experience, so make sure to emphasise these when applying for vacancies. 

How to Apply for Payroll Jobs 

Here are some handy tips to remember when applying for payroll jobs for the first time: 

  • Highlight relevant skills, qualifications or experience: For example, mention any payroll training or courses you've taken and outline the skills and knowledge you’ve gained from them.
  • Tailor your CV and covering letter for each role: This is good practice for all job applications and ensures you’ve addressed all the necessary criteria in the job listing, which will reflect well on you to the employer, too.
  • Focus on personal skills and attributes if you’re short on relevant experience or qualifications: Also try and remember to back these up with real-life examples if possible. For example, you could talk about how your aptitude with numbers or spreadsheets proved beneficial in a previous educational context.
  • Proofread and check your CV and cover letter thoroughly for errors: It seems minor, but mistakes like typos, misspelled words and poor grammar can make all the difference between a rejection and an interview offer!  

Progress Your Career in Payroll

As one of the most important and, perhaps, undervalued functions in business, payroll can offer you a hugely rewarding career for those who want to make a tangible difference in people’s working lives. 

For those starting from scratch, arguably the most effective way to break into the profession is to enrol on a course that’ll give you the knowledge and skills required for entry-level roles and further development. 

 

Start your new career with a flexible ICB & Sage course with ICS Learn today. 

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