Payroll certifications guide: Salaries, options, and job duties

What is a payroll certification?

A payroll certification is a professional credential that validates an individual’s expertise in payroll management. Getting a payroll certification helps you understand the payroll processes and prepares you to handle complex payroll tasks.

Certified Payroll Professional (CPP)

A Certified Payroll Professional has passed the PayrollOrg’s CPP exam by demonstrating expertise in payroll management.

CPPs are responsible for calculating wages, processing tax deductions, administering employee payments, adhering to federal laws, and other payroll management duties.

Their specialized payroll knowledge and skills make them valuable assets for companies aiming to optimize payroll operations and minimize financial risks.

Who issues payroll certifications?

These are some of the recognized organizations that provide credible payroll certifications: 

• PayrollOrg, formerly known as the American Payroll Association (APA), issues Certified Payroll Professional (CPP) certification, Fundamental Payroll Certification (FPC), and Global Payroll Management Certificate (GPMC).

• National Association of Certified Public Bookkeepers (NACPB) offers the Certified Payroll Specialist (CPS) certification, Certified Payroll Administrator (CPA) certification, and Payroll Technician Certificate (PTC).

Why get a payroll certification?

A payroll certification offers several benefits, such as: 

• Builds expertise: While pursuing a payroll certification, you’re trained on complex regulations, tax laws, and industry best practices. This rigorous training helps you build expertise in payroll management.

• Ongoing learning: Most payroll certifications require continuing education to maintain your credential. So, you need to keep tabs on changing payroll laws and regulations. This helps you stay relevant in the field of payroll management.

• Professional network: While preparing for payroll certification, you connect with mentors or aspirants and build a network. This network is invaluable for getting advice to manage your company’s payroll or finding an expert to do it for you.

Do you need payroll certification to run payroll?

No, you don’t necessarily need a payroll certification to run payroll. But having one can be beneficial. A payroll certification gives you a deeper insight into payroll management, which is required to run your company’s financial operations smoothly. You can also use this insight to assess others while hiring expert payroll professionals to manage your business’s payroll. 

What does a certified payroll professional do?

A certified payroll professional performs various essential payroll administration tasks. Here are some of the key duties:

• Process wages: CPPs calculate and process employee wages, including deductions for taxes and benefits. This involves computing gross pay, determining appropriate deductions, and making sure that employees receive correct net pay.

• Regulatory compliance: CPPs adhere to federal, state, and local payroll regulations and tax laws. They stay informed about changing regulations and make necessary adjustments to maintain legal compliance. 

• Manage payroll software: To maintain up-to-date payroll records, CPPs regularly update employee information, document payroll transactions, and oversee the operation of payroll software. 

• Tax reporting: CPPs prepare and file payroll tax reports. They are also responsible for timely completing and submitting various tax forms and reports to government authorities.

• Resolve payroll issues: CPPs are responsible for investigating and correcting payroll errors. Also, they need to address employees’ questions and concerns regarding their pay and imputed income calculation.

• Coordinate externally: CPPs coordinate with banks for direct deposits and fund transfers. They communicate with tax authorities for accurate payroll reporting and remittance. Also, they collaborate with government bodies to maintain compliance.

How to become a certified payroll professional

The process of becoming a certified payroll professional might seem daunting at first, but it’s manageable when you break it down into steps. Let’s walk through the step-by-step process of earning your CPP certification. 

1. Meet educational requirements

A high school diploma or General Educational Development (GED) is typically the minimum educational requirement to become a CPP. However, you can upskill yourself by enrolling in payroll courses focusing on tax form preparation, payroll processing, and payroll software.

You can even take the FPC exam to understand the basic payroll concepts and gain a solid foundation in payroll management. You can also pursue an associate’s or bachelor’s degree in accounting, business administration, or human resources. 

These programs can provide valuable knowledge that comes in handy while you take the CPP exam.

2. Get the required amount of experience

Apart from education, you also need to gain the required experience before taking the CPP exam.

You need to meet one of these experience requirements: 

1. Payroll practice of 3 out of 5 years preceding the exam application date. The practice should involve: 

• Payroll production, reporting, accounting, systems, taxation.
• Payroll administration.
• Payroll education/consulting.

2. 24 months of recent payroll practice and completion of all the courses within one of the following three options offered by PayrollOrg:

• Option 1
  • Payroll Practice Essentials.
  • Intermediate Payroll Concepts.
  • Advanced Payroll Concepts.
  • Strategic Payroll Practices.

• Option 2
  • Foundations of Payroll Certificate Program.
  • The Payroll Administration Certificate Program.

• Option 3
  • Certified Payroll Professional Boot Camp.

3. 18 months of recent payroll practice, FPC designation, and completion of all the courses within one of the following three options offered by PayrollOrg:

• Option 1
  • Intermediate Payroll Concepts.
  • Advanced Payroll Concepts.
  • Strategic Payroll Practices.

• Option 2
  • The Payroll Administration Certificate Program.

• Option 3
  • Certified Payroll Professional (CPP) Boot Camp.

3. Take the CPP exam

The final step is to pass the Certified Payroll Professional examination. The exam consists of 190 multiple-choice questions and takes about four hours to complete. 

Questions in the CPP exam are related to core payroll concepts, compliance, calculation of paychecks, payroll processes and software, payroll administration, audits, and accounting. 

To prepare for the exam, you can get study materials from PayrollOrg. You can also attend PayrollOrg’s preparation courses. 

PayrollOrg offers training and resources in various formats—books, courses, webinars, online research materials, etc. 

Many candidates also form study groups or seek mentorship from current CPPs.

After passing the exam, you need to recertify every five years through continuing education or by retaking the exam so you stay current with evolving payroll practices and regulations.

Options for  payroll exams and certifications

The following are the various options for payroll exams and certifications. Each offers unique benefits and caters to different experience levels.

Certified Payroll Professional (CPP) Certification

The Certified Payroll Professional certification issued by PayrollOrg is regarded as the gold standard in payroll credentials. 

It is designed for payroll professionals who want to validate their expertise and advance in their payroll careers.

The CPP exam covers seven key areas:

• Core payroll concepts.
• Compliance/research and resources.
• Calculation of the paycheck.
• Payroll process and supporting systems.
• Payroll administration and management.
• Audits.
• Accounting.

The CPP certification exam costs $380 for PayrollOrg members or $550 for non-members.

The CPP certification offers benefits, including increased earning potential, better job opportunities, and recognition as an expert in payroll management. 

For a founder, it offers benefits such as more in-depth knowledge about running payrolls and being able to assess if someone is a good fit for taking on that responsibility.

Fundamental Payroll Certification (FPC)

The Fundamental Payroll Certification (FPC) is an entry-level payroll certification issued by PayrollOrg.

It is suitable for entry-level payroll professionals, sales professionals/consultants serving the payroll industry, systems analysts/engineers supporting payroll systems, and payroll service provider client representatives.

The FPC exam consists of 150 multiple-choice questions on basic payroll concepts, compliance, and payroll calculations.

For the FPC certification exam, you need to pay a fee of $320 if you are a PayrollOrg member or $395.

To earn the Fundamental Payroll Certification, you need to pass the FPC exam. No specific education or experience is required. 

FPC provides a solid foundation in payroll management. Also, it serves as a stepping stone to the CPP certification.

Certified Payroll Specialist (CPS) Certification

The NACPB issues the Certified Payroll Specialist certification.

This certification is tailored for payroll professionals working in small businesses and non-profit organizations. So if you're running a small business or an NGO, this might be helpful for you.

The CPS exam covers payroll calculations, tax reporting, compliance, and payroll accounting.

To earn a CPS certification, you need to 

• Obtain Payroll Certification and QuickBooks Online Certification.
• Get one year of payroll experience.

CPS certification validates your knowledge, skill, and experience in payroll and QuickBooks Online. It builds your credibility, validates knowledge, and demonstrates skill. 

FAQs about payroll certifications

Is payroll certification worth it?

Yes, payroll certification is totally worth it. It provides you with a deeper understanding of running payroll management, which comes in handy when you are the founder and you need to run your company’s payroll effectively. 

Which payroll certification is best in the USA?

The Certified Payroll Professional (CPP) certification issued by PayrollOrg is widely regarded as the gold standard in the USA. It is essential for experienced payroll professionals, managers, and supervisors who want to demonstrate advanced knowledge in payroll administration.

Is payroll difficult to learn?

Payroll can be complex due to constantly changing regulations and the need for accuracy. However, it’s not inherently difficult to learn. There are many courses online that help you grasp payroll concepts easily. You can get started with the FPC program to learn the basics of payroll management.

What are some payroll courses?

Which payroll course you take depend on your goals and experience level. However, some highly regarded options include:

• Payroll 101: Foundations of Payroll Certificate Program: A week-long course that covers basic procedures and terminology for entry-level payroll practitioners.

• Payroll 201: Payroll Administration Certificate Program: An intensive training on complex payroll functions and regulations for advanced payroll practitioners.

• Global Payroll Management Certificate Program: Designed for those managing international payroll operations.

Conclusion: Streamline payroll with Rho's integrations

Payroll certification involves a significant amount of study, effort, and dedication. However, it is a great investment if you want to manage or outsource your company's payroll management.  

As you focus on growing your business and developing your team, consider how Rho can streamline your financial operations. 

Rho integrates with over 50 HR platforms, including Gusto, which can make payroll even easier. Gusto helps you onboard employees seamlessly, run payroll management, and automate payroll tax filings, all while maintaining compliance.

Schedule a demo with us today!

Pia Mikhael is a guest contributor. The views expressed are theirs and do not necessarily reflect the views of Rho.

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Rho is a fintech company, not a bank. Checking and card services provided by Webster Bank, N.A., member FDIC; savings account services provided by American Deposit Management, LLC, and its partner banks.

Note: This content is for informational purposes only. It doesn't necessarily reflect the views of Rho and should not be construed as legal, tax, benefits, financial, accounting, or other advice. If you need specific advice for your business, please consult with an expert, as rules and regulations change regularly.

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