Top 21 Payroll Clerk Interview Questions And Answers [2024 Edition]

No business organization can work without its employees, who are also known as human resources employed by an enterprise. Famous businessmen and CEOs of the companies have time and again reiterated the importance of employees in an organization. Money is undoubtedly the primary source of motivation for every human being including employees, and thus, it is necessary to have a proper system to manage the financial compensation earned by these employees.

A payroll clerk is a specialized professional having superior financial literacy as well as expertise in managing the payroll of the company. He or she has to deal with a variety of aspects, such as management of employee’s bonuses, sales commissions, incentives, salaries, etc. It is an important position in an organization and a payroll clerk is expected to fetch a handsome salary. Given the competition existing in the industry, it is necessary to prepare hard for an interview session, preferably by studying the frequently asked interview questions.

21 Best Interview Questions To Study

1. What Do You Mean By Deductions From The Taxable Income?

Being a payroll clerk, you are supposed to be aware of at least the basic structure of Income-tax laws operating in your country.

Sample Answer

Sir, in the income tax laws there are certain provisions that allow an employee to reduce its taxable income. These are majorly some investments done on a long-term basis for a fixed period of time. Whatever the total taxable income of an employee is, his or her income could be reduced using these valid and legitimate deductions.

2. How Important Is The Compliance With Established Labour Laws and Employee Codes?

This question aims to test your knowledge and understanding of the various laws and the importance of compliance.

Sample Answer

Sir, when you live in a country, you ought to follow the land of the law, otherwise, you will be supposed to face the wrath of the authority. I am a law-abiding employee and would never do anything which is against the established laws and codes.

3. Name The Three Best Payroll Management Software Currently Used Widely In The Industry.

It is almost impossible to do payroll management without using the software. Thus, you must possess expert knowledge of the same.

Sample Answer

Sure, sir, These are:

• Xero
• Quickbooks Payroll
• Sage 50 Cloud

4. What Is A Capital Expenditure?

A payroll clerk is a core commerce profile and thus you need to be aware of at least the basic accounting concepts and their practical applications.

Sample Answer

Sir, there are two types of expenditures, which are recurring and are of small ticket size and the other ones are non-recurring and are of a big-ticket size. The recurring expenses are known as revenue expenditures and are expected to provide benefits for a period of less than one year. On the other hand, the non-recurring expenses are known as capital expenditures and these are expected to provide benefits for a period exceeding 12 months.

5. What Is The Concept Of Prudence In Accounting?

A payroll clerk is a core commerce profile and thus you need to be aware of at least the basic accounting concepts and their practical applications.

Sample Answer

Sir, it is common for business organizations to face a situation in which they will be required to face future losses. As per the concept of prudence if an organization is in a state that it can predict or anticipate future losses then it is required to prepare provisions for it. These provisions would be a direct charge on the income statement of the company and would reduce profits.

6. Payroll Management Involves Repetition Of Tasks. Isn’t It Boring For You?

Through this question, an interviewer wants to know about your approach towards the execution of tasks that are repetitive in nature.

Sample Answer

Sir, in my opinion, only through repeating tasks every day, you can gain proficiency and also develop command over that particular aspect. When you know a task inside out, you tend to enjoy working upon it. Hence, for me, it will never be boring rather more exciting.

7. What Is A Balance Sheet and An Income Statement?

A payroll clerk is a core commerce profile and thus you need to be aware of at least the common financial statements.

Sample Answer

Sir, both of these are important financial statements of the company. A balance sheet is a summary of the assets and liabilities of a business organization, as on a particular date. It includes various sub-items under the headings of Share Capital, Liabilities, Current assets, and Non-current assets. On the other hand, an income statement is also known as the Profit and Loss Account of the company and depicts the profits earned by the company in a period of time.

8. Tell Any Three Features Of Quickbook Payroll Management Software.

Payroll management revolves in and around technology. Thus, you must be aware of the latest software that is widely used in the industry.

Sample Answer

Sure, sir, These are:

• Cash flow management by tracking the inflows and ouflows
• Creates employee records, identification and one tap summary of the money payable
• Enables a direct import of financial data related to bank or any financial institution

9. How Will You Handle A Discontent Employee As His Salary Has Been Wrongly Deducted By the Payroll Software?

This is a situation-based interview question and you are required to share a unique response to it based on your understanding and analysis.

Sample Answer

Sir, technology might sustain glitches and bugs at times, and this situation can happen. However, one must be patient and understand the technicality involved. If I ever face such a situation, I will always, first of all, understand the root cause of the problem and then will try to give a perfect resolution based on my understanding, Also, I will make suitable amends to the payroll software, so that, such an issue never arises again.

10. How Will You Process A Disputed Reimbursement?

This question tests your knowledge and understanding of the practical working procedures.

Sample Answer

Sir, it is common for the payroll clerk to receive multiple claims and reimbursements. However, not all are genuine and some are utter trash. We categorize them as disputed and it is my habit to first of all conduct deep scrutiny of such a claim and if based on my findings it could be further processed, I forward the entire case to my senior for his or her kind perusal. Otherwise, the claim is rejected straightaway.

11. Being A Payroll Clerk, You Will be Required To Perform Several Tasks. How Do You Prioritize?

Prioritization of tasks on the basis of an effective technique is highly desirable and required to execute the tasks in a time-bound manner. Thus, you will always be expected to have a developed prioritization technique and you are supposed to share it with your interviewer as an ideal response to this question. In case you have not developed one, please refer to our famous article, for your reference.

12. What Are Your Strengths As A Payroll Clerk?

This is a common interview question and is asked in several interview sessions, held across the world. In order to give an ideal response to this question, you are required to conduct deep scrutiny of yourself and then note down some of your closest strengths. Post this, pick out any three and prepare detailed responses for them. In case you are confused or want a better explanation, please refer to our exclusive post.

13. Payroll Mangement Is Hectic. How Do You Handle Stress?

Stress management is an important aspect of working in any business organization. This is a common expectation from the employee and you are required to give a positive answer to this question using persuasive language and by maintaining a professional tone. In order to boost your preparation and to read out the ten unique sample answers for this question, please read our targeted post.

14. How Much Salary Do You Expect?

This is an important interview question, as you will be required to share your salary expectations. Sating any random figure which is too high or too low can severely deplete your selection chances as you will be straight away termed as an underprepared or a non-serious candidate. As an ideal response, always share your salary bracket after conducting deep market research of the industry to which you pertain. Boost your preparation for this interview question, by reading our exclusive post.

15. Describe Your Best Boss and Worst Boss?

This is a master personality evaluating question and is commonly used by interviewers for assessment purposes. Through this question, an interviewer wants to know about your best and worst senior that you might have encountered during your professional tenure. For better preparation and reference, please read our exclusive post, which will give you ten unique sample answers to choose from.

16. Team Work Is Necessary For Productivity. What Is Your Ideal Team Culture?

This question aims to understand what in your opinion is an ideal team or how you expect your team members to be. They can be supportive, committed, honest, etc. Share your genuine response to this interview question and in case you are confused, please read our exclusive post.

17. Failure Is A Part Of Life. How Do You Handle Failure At Your Workplace?

Success is not a guarantee and everyone understands it well, However, there are pretty few people who are able to handle failure and not let it have any devastating impact upon the mind and the normal functioning. Through this question, an interviewer wants to know about your own strategy to handle failure. Read our special post, for a better understanding and our ten unique responses to this interview question.

18. What In Your Opinion Is The Meaning Of “Quality”?

This is a word-specific interview question in which you are given a single word to be interpreted. There could be several interpretations of the word “quality”, however, as an ideal response, you are expected to share your own version. In case you are confused, please refer to our exclusive post, for complete guidance and ten unique sample answers.

19. When Can You Start Working With Our Organization?

Through this question, an interviewer wants to know about your “availability”. This question in no way guarantees your selection, rather requires you to share your expected date of joining the organization. It is true that immediate starters are always preferred but we advise you to never share any fake response. For better understanding, please read our exclusive post, which will give you tips as well as ten unique responses to answer this question.

20. What Is The One Word That Completely Defines You?

This interview question is just another variation of “Describe yourself in one word“. As an ideal response to this question, you are supposed to share the best word, which relates to your own personality, approach, and ideology. The best way to do so is by reading and analyzing the job description issued by your employer and then find out the requisite attributes that will satisfy those words. For example, if a job description states, a candidate must meet its deadline. Then your single word can be committed.

21. Do You Have Any Questions For Us?

This is the most common interview question, which is used widely to conclude an interview session. Through this question, an interviewer wants to know about the various doubts or apprehensions that you might have in relation to the organization, its working culture, its ethics, its policies or rules, etc. You must never ignore or skip this question, rather always ask a few relevant questions based on the model questions mentioned below:

• What are the various allowances and incentives offered by the company to its employees?
• Is it the policy of the company to extend reimbursement for events such as maternity/paternity?
• What are the training and developmental opportunities as well as programs that the organization undertakes for its employees?

Closing an interview session in style holds huge relevance and importance. Prepmycareer has prepared a specialized post, which will guide you completely as to how you can close your interview session in style.

References

1. https://books.google.com/books?hl=en&lr=&id=cxYcEAAAQBAJ&oi=fnd&pg=PP1&dq=Top+21+Payroll+Clerk+Interview+Questions+and+Answers+%5B2021+Edition%5D+&ots=B16WgzBQPh&sig=oYipzU6PvJ70DHbEPFGxAzapFtg
2. http://dspace.vnbrims.org:13000/jspui/bitstream/123456789/4877/1/Business%20Marketing%20Management%20B2B.pdf