Learning payroll isn’t just for people pursuing a career in accounting or HR. It’s important education for employers, as well. Those who plan on processing payroll themselves must thoroughly understand how to calculate wages, withhold taxes, comply with employment rules and regulations laws, and more if they want to avoid costly errors.
Even employers who don’t have the time or the desire to run payroll would do well to learn payroll basics. After all, ensuring payroll accuracy is their responsibility, and mistakes could put their business at risk. Learning payroll can also help employers assess qualifications when hiring a payroll specialist or accountant to handle the job on their behalf.
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How to learn payroll basics
Individuals with a bachelor’s degree in accounting, finance or business administration may already possess many of the basic skills necessary to process payroll. Those without these degrees should not be discouraged, though. There are online payroll classes for beginners and payroll product specialist programs designed to introduce people to payroll, regardless of their formal educational background.
Online payroll courses
PayrollOrg, previously known as the American Payroll Association, offers payroll courses ranging from introductory to advanced. These classes are open to members and non-members of the organization alike, though tuition prices vary with status. If so inclined, individuals can also earn payroll certifications through PayrollOrg.
Payroll product specialist programs
Employers who already use payroll software may be able to obtain payroll training from the provider. Such courses are usually product specific and only available to existing customers. ADP, for example, offers a certified product specialist program for ADP Workforce Now®. Clients are required to have used the solution for a certain length of time and meet other eligibility criteria to enroll.
Learn how to do payroll for free
Attending a class is an excellent way to learn about payroll, but the course providers usually charge fees. Employers on a tight budget may resort to online articles and videos published by independent authors. This content can sometimes be educational, though it’s usually not as comprehensive or trustworthy as the material learned in a payroll course.
Another cost-free option is to review material published by government entities, such as the Internal Revenue Service (IRS), Department of Labor, and state and local agencies. However, these resources may be difficult to locate and interpret.
How to have payroll learning success
Payroll is a complex topic, and failure is not an option. Whenever there is a lack of understanding, it’s usually best to seek professional assistance. Payroll service providers, like ADP, build compliance support services into their packages and will help employers stay current on the latest payroll laws and tax regulations.
How to become a payroll specialist
The steps to become certified in payroll depend on the certification and the accrediting body. Individuals who decide to take their payroll education to the highest level should consider whether they have the time to meet the requirements necessary for certification.
For example, obtaining Certified Payroll Professional (CPP) status from PayrollOrg requires more than completing extensive coursework and passing a test. Aspiring CPPs must also have professional experience practicing payroll for at least three of the five years preceding the date of their examination application.
Steps to a payroll accountant career
Some employers might decide that processing payroll is beyond their capabilities and hire an accountant to do it. Candidates with a proven track record in payroll management may have the following:
- Degrees
Accountants commonly earn bachelor’s degrees in accounting, finance or other related fields. - Experience
To properly process payroll, accountants should have experience calculating wages, filing payroll taxes, auditing payroll and maintaining payroll records. - Certifications
In addition to a certified public accountant (CPA) license, accountants who specialize in payroll might have a Fundamental Payroll Certification (FPC) or CPP from PayrollOrg. - Professional development
Continuing education credits show that accountants are dedicated to furthering their payroll knowledge and maintaining their certifications. - Professional networks
Accountants who are members of PayrollOrg have access to the latest payroll compliance news and updates through the affiliation.
Required experience for a payroll accountant
Payroll accounting positions usually require at least two years of professional experience. If employers want to expand their field of candidates, they might look for accountants who have worked related jobs, such as:
- Accounting clerk
- Bookkeeper
- Payroll administrator
- Payroll coordinator
- Timekeeping clerk
- Payroll specialist
- Payroll manager
Frequently asked questions about learning payroll
What do you learn in payroll accounting?
Payroll topics in an accounting course may include the following:
- Wage calculations
- Additional compensation and benefits
- Statutory deductions
- Voluntary deductions
- Payroll tax deposits and filings
- Payroll record keeping
What degree do you need for payroll?
Payroll professionals commonly have bachelor’s or associate’s degrees in accounting, finance, business administration or other related fields. However, education requirements may vary depending on the position and the employer.
What certifications do you need to do payroll?
Certifications are not required to process payroll professionally, though some employers might prefer certified candidates. Two of the more well-known payroll certifications include the FPC and the CPP.
How long does it take to get CPP certification?
CPP certification may take considerable time due to the employment criteria. Individuals seeking CPP are required to have practiced payroll professionally in at least three of the five years preceding their exam date.
Is guided help available?
PayrollOrg and other organizations offer online courses for employers seeking to further their payroll education or obtain certification. They can also rely on government agency resources, or if using payroll software, they may be eligible for product-specific training from the solution’s provider.
Who typically manages payroll in small businesses?
Small business owners on a tight budget sometimes manage payroll themselves, though this practice is often time consuming and error prone. Outsourcing the process to a payroll service provider alleviates administrative burdens and allows employers to focus more attention on growing their business.
This guide is intended to be used as a starting point in analyzing how to learn payroll processing and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax guidance or other professional services. Please consult with your legal counsel.
