As entering payroll and timekeeping information becomes more simplified, the job itself is becoming more complex, with companies now offering a greater variety of pension, 401(k), and other investment plans to their employees. Also, the growing use of garnishment of wages for child support is adding to the complexity. These transactions must be recorded and kept track of, requiring payroll clerks to implement changes. In contrast to this trend, the other one is that computers are doing much of the recordkeeping, allowing payroll clerks to handle more records. Also, the greater complexity of the job, coupled with the automation of records that is simplifying data entry, is resulting in payroll professionals, not clerks, doing more of the work.

Another factor leading to the slow growth in employment of payroll clerks is that companies are increasingly outsourcing the function of producing payroll to firms that specialize in the task. Many of these companies are data-processing facilities, but accounting firms also are taking on the payroll function to supplement their accounting work. This growing specialization of the payroll function should lead to more productive payroll clerks.

Computerization is still the number one factor that is slowing the demand for payroll and timekeeping clerks. For example, automated timeclocks, which calculate employee hours, allow large organizations to centralize their timekeeping duties in one location. At individual sites, employee hours are increasingly tracked by computer and verified by managers. This information is then compiled and sent to a central office to be processed by payroll clerks, eliminating the need to have these clerks at every site. In addition, the growing use of direct deposit eliminates the need to draft paychecks, because these funds are automatically transferred each pay period. Also, a growing number of organizations are allowing employees to update their payroll records automatically. Furthermore, in smaller organizations, payroll and timekeeping duties are increasingly being distributed to secretaries, general office clerks, or accounting clerks.