Outsourcing payroll processing to a reputable service provider can help employers accurately pay their employees on time. Many providers will also assist with depositing taxes and filing the appropriate tax returns with government agencies.
Despite these advantages, some employers prefer to manage payroll in-house. Those considering this approach should know that payroll is sometimes complex and errors can be costly. To help minimize risks, employers may need to provide comprehensive payroll training to their employees or hire payroll practitioners with designated certifications.
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What is payroll certification?
Certification validates that an individual has the requisite amount of knowledge in the payroll field. Depending on the certification and the accrediting body, students will have to demonstrate that they understand the following:
- Gross and net pay calculations
- Federal, state and local tax requirements
- Unemployment taxes
- Benefit deductions
- Wage garnishments
- Payroll reporting and reconciliation requirements, including general ledger entries
- Payroll record keeping requirements
- Worker classification
Types of payroll training
A professional certification and a product specialist certification are two types of payroll certifications that can be awarded to individuals. However, they differ in scope and purpose.
Professional payroll certification
A professional certification is a broader accreditation that focuses on an individual's knowledge, skills and experience in payroll. It demonstrates a payroll practitioner’s competence and commitment to the field and assures employers and clients that the individual can perform the job effectively.
Product specialist certification
A product specialist certification is a narrow accreditation specific to an individual's knowledge and expertise in a particular payroll software. It recognizes an individual’s ability to optimize features and troubleshoot issues within the payroll solution.
Product specialist certifications are usually available from payroll providers. ADP, for example, offers payroll product training courses covering RUN Powered by ADP® and ADP Workforce Now®.
What are the best payroll certification and training programs?
Some accrediting organizations in the United States and Canada that award payroll certifications include:
- PayrollOrg (PAYO), formerly the American Payroll Association (APA) and the Global Payroll Management Institute (GPMI)
U.S. accreditations available: Certified Payroll Professional (CPP), Fundamental Payroll Certification (FPC) and other payroll certificate programs
Global accreditations available: Global Payroll Management Certificate Program, Advanced Global Payroll Management Certificate Program and Managing Payroll Operations Across the Globe Certificate Program - National Association of Certified Public Bookkeepers (NACPB)
Accreditations available: Certified Payroll Specialist (CPS) license - National Payroll Institute (NPI), formerly the Canadian Payroll Association (CPA)
Canadian accreditations available: Payroll Compliance Professional (PCP) and Payroll Leadership Professional
Payroll certification benefits
An ongoing commitment to professional development can mean a leg up in any field, but especially one like payroll, where government regulations constantly change. Employers who hire people with payroll certifications may be able to take advantage of the following benefits:
- Enhanced skills
Payroll training programs help people better understand payroll processes and the latest tax regulations so they can pay employees accurately and deposit and file taxes efficiently. - Improved confidence
When a company’s payroll team members are confident in their abilities as payroll practitioners, they’re better equipped to answer pay-related questions from employees and management and address any issues that may arise. - Networking opportunities
People with a payroll certification can network with other professionals in their field and share best practices.
How to choose the right payroll training
To find the ideal payroll courses for their payroll team members, employers must consider each individual’s current experience and desired proficiency level. Options range from introductory classes to advanced programs with work-related prerequisites.
Basic payroll certification
Fundamental payroll courses are introductory and open to anyone who wishes to demonstrate a baseline of payroll competency. They’re ideal for entry-level payroll professionals, sales professionals serving the payroll industry, systems analysts and engineers supporting payroll systems, and payroll service client representatives.
Payroll professional certification and certificate programs
Payroll professional programs are intended for people with prior payroll knowledge and experience. To be eligible, students must have direct or related involvement in payroll production for a certain number of years preceding the date of their payroll certification exam. Roles that commonly pursue payroll professional certification include payroll managers, payroll specialists and payroll compliance officers.
Frequently asked questions about payroll training
Who should get basic payroll training?
Anyone who has direct or indirect payroll responsibilities should receive training in payroll. Examples include payroll managers, HR professionals, payroll salespeople and payroll systems analysts.
Is payroll certification worth it?
Certification can help payroll practitioners improve their skills and advance their careers. Employers who want greater confidence in their team’s ability to process payroll quickly and accurately may prioritize candidates with certifications.
Where to find payroll classes online?
Professional payroll certifications can be obtained from PayrollOrg (PAYO), the National Payroll Institute and other organizations. Product specialist certifications are available directly from many payroll software providers.
How payroll certification fits in a broader business strategy
Federal, state and local requirements related to payroll change frequently. Payroll professionals must have the proper knowledge, otherwise they may commit errors and potentially subject their employer to fines and penalties. Making payroll certification part of a business’s strategy for its payroll team can help improve compliance and reduce the risk of costly mistakes.
This guide is intended to be used as a starting point in analyzing payroll training 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.
