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What Does a Pay Administrator Do?

By D. Nelson
Updated Jan 24, 2024
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People who work as pay administrators are often responsible for tracking hours that employees work and making sure that they are paid accordingly. These professionals might also be responsible for tracking services that an organization uses, such as deliveries of materials, and making sure that vendors and suppliers are paid for their services. In some instances, a pay administrator might be expected to act as an accountant. He or she is responsible for making sure that all workers are paid within laws and regulations set by government agencies. In these scenarios, a pay administrator might also take part in auditing and budgeting processes.

The qualifications that companies require of their pay administrators vary depending on the tasks they are responsible for completing. For instance, companies where a pay administrator must only enter data regarding hours worked by employees might only need an associate's degree or experience performing data entry in an office environment. In organizations where pay administrators are expected to act as members of accounting or financial planning departments, they often must have formal academic training in fields such as finance or accounting. These higher level pay administrators can also benefit from many years of experience in accounting or payroll departments, as well as from earning professionals accounting certification.

Much of the job of a pay administrator includes entering data and reviewing it to ensure that it is consistent. In other words, pay administrators might measure real costs against projected estimates and determine how and why these values might differ. It is also common for a pay administrator to set budgets and estimates for labor and make sure that workers are putting in the proper amount of hours.

When a pay administrator works for a taxi, limousine, or other kind of transportation service, he or she is responsible collecting and entering driver data. This kind of professional might use meters or software to determine how far a driver traveled and how many passengers he or she picked up. An administrator might then calculate how much an organization owes drivers for their services.

It is common for a pay administrator to act as a negotiator. When this kind of professional is responsible for paying suppliers and other service providers, he or she might make sure that terms of a contract are being followed and that costs and terms of service are satisfactory to both parties. It is also normal for a pay administrator in a payroll department to assist employees who believe they have been underpaid or who want permission to work overtime.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
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