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Get Matched With Payroll Specialists Programs

If you are thinking of working in this field, it's important to understand the education requirements to become a payroll specialist. You may be able to get into this field with an associate degree, along with the required skills, though many employers prefer those with a bachelor's. Certainly, if you wish to work full-time, at a large company, and hope to have access to benefits, you will need more education.

A career as a payroll specialist offers a rewarding opportunity for those interested in managing and processing employee compensation, benefits, and taxes. As a critical part of any organization, payroll specialists ensure that employees are paid accurately and on time while maintaining compliance with federal and state regulations. Whether you're looking to start a career in payroll or advance in the field, this guide will walk you through the necessary steps to become a skilled payroll professional, from obtaining the right education and certifications to gaining hands-on experience. Explore the path to this essential and in-demand role today!

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What is a Payroll Specialist?

As a payroll specialist, or payroll clerk, you would work with the payroll data that applies to every employee and manager in your company. A payroll specialist typically works in the Human Resources (HR) or Accounting/Finance department of an organization. In many companies, payroll functions fall under HR because they directly relate to employee compensation, benefits, and compliance with labor laws. However, in some organizations, payroll may also be managed within the accounting or finance department, especially in larger companies where payroll is seen as a financial task that requires close oversight of budgets and taxes. Regardless of the department, the payroll specialist collaborates with HR and accounting teams to ensure employees are paid correctly and that the organization remains compliant with tax and labor regulations.

What Does a Payroll Specialist Do?

The payroll specialist is responsible for processing their employer’s payroll and keeping tax information for the company current; in short, they perform payroll management duties. These employees may also conduct some training on timekeeping software for new employees if they use special software for tracking their hours or requesting sick days. These professionals should expect to work in the human resource office of a small or large business. Some work for firms that provide freelance services for client companies.

You may be responsible for entering both time and attendance into specialized timekeeping software, then transferring those hours into payroll software. It’s vital to have good problem-solving skills so you can detect errors that may develop with technology, or human errors from employees and managers. You’ll be expected to fix these mistakes so that everyone is paid correctly.

To succeed as a payroll specialist, it's important to have strong communication, math, and organizational skills. You can develop and hone these abilities in high school, community college, or university. If you're passionate about advancing in your career, you might consider making payroll or human resources your long-term focus. For that, further education could be a great next step—perhaps pursuing a master's degree in human resource management. Additionally, earning certifications like the Certified Payroll Professional (CPP) from the American Payroll Association can really give you a leg up and help you take your career to the next level.


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Steps to Become a Payroll Specialist:

  • Step 1: Enroll in and Take a Degree

  • Step 2: Get Hands-on Experience

  • Step 3: Take the CCP Exam

  • Step 4: Continuing Education

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Step 1: Enroll in and Take a Degree

You might first enroll in a community or technical college where you’ll earn an accounting associate degree or a training certificate that prepares you to work as an accounting and/or payroll specialist. This certificate program teaches you how to accurately handle the everyday transactions of your employer including the tracking of inventory, sales, and bill payments.

These options can give you the training you need to begin at an entry-level in an accounting or human resources departments where you would be handling accounting and/or payroll duties. Courses you might take include business math, accounting essentials, payroll preparation essentials, QuickBooks, introduction to Excel, organizing computer files, etc.

Step 2: Get Hands-on Experience

Gaining hands-on experience can be a crucial step in becoming a payroll specialist. While formal education provides the foundation, it's through real-world experience that you’ll develop a deeper understanding of payroll processes, tax laws, and software systems used in the industry. Many people start by working in entry-level positions, such as payroll assistant or office administrator, where they can learn the ropes of managing employee wages, calculating deductions, and ensuring compliance with labor laws. These roles often provide opportunities to work closely with more experienced payroll professionals, offering valuable mentorship and insights into the nuances of the job.

Additionally, internships or part-time jobs in accounting or human resources departments can be great ways to build practical skills. By immersing yourself in the day-to-day operations, you'll become familiar with payroll software programs, tax filing systems, and various payroll-related tasks, all of which will prepare you for a specialized payroll role. The more experience you gain, the more proficient and confident you’ll become in handling payroll responsibilities, setting you up for success as you continue to progress in your career.

Step 3: Take the CCP Exam

The Certified Payroll Professional (CPP) exam, offered by the American Payroll Association (APA), is a respected certification that demonstrates expertise in payroll management. It boosts your career by proving your knowledge of payroll processes and compliance.

To be eligible for the exam, you generally need three years of payroll experience in the last five years. If you complete the APA’s Payroll Certification Program, you may qualify with just two years of experience. While no formal education is required, many candidates come from accounting, finance, or business backgrounds, and relevant coursework can be helpful.

Though not mandatory, many candidates take specialized training before the exam to review topics like payroll laws, tax regulations, and payroll systems. After meeting eligibility requirements, you can apply to take the exam, which covers subjects such as payroll taxes, wage calculations, and compliance. Passing the exam grants you the CPP certification, which is valid for five years and requires continuing education to maintain.

Step 4: Continuing Education

Once you receive your first certification and begin working as a payroll specialist, your days of professional education are not over. To hold onto your position and receive promotions, you need to continue seeking out and taking related courses. The CPP certification requires that you complete 120 credit hours every five years to maintain. You could also continue your education by earning a bachelor’s degree in accounting or a master's. You could even go on to earn your CPA license if you really want to move up in the field.

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Skills to Acquire

  • Processing payroll
  • Maintaining personnel databases
  • Managing budget expenses
  • Understanding tax law, wage and hour laws, union contracts
  • Understanding how common fiscal procedures are used
  • Being familiar with budget operations
  • Being a skilled multitasker
  • Managing time well
  • Working directly with clients
  • Resolving employee complaints
  • Having excellent computer skills
  • Working well with online data programs and payroll processing software
  • Understanding and working well with Microsoft Office applications
  • Being prepared to work on and produce reports
  • Providing accurate data to management
  • Being skilled with clerical skills: data entry, files maintenance, ensure accuracy in reports, prepare male to go out, work on contract issues respond to emails and answer phone calls from employees and clients
  • Maintaining employee confidentiality in preparing payroll and distributing confidential materials
  • Knowing how to calculate numbers
  • Knowing how to maintain vital records
  • Inputting data accurately from production records, time cards or time sheets
  • Balancing payroll runs
  • Producing local, state, and federal tax payments
  • Answering employees’ questions and troubleshoot any payroll problems
  • Submit work to your supervisor in a timely manner
  • Being able to work in an indoor, office environment
  • Being able to take certification courses as recommended by supervisor

Alternative paths

You may not need to attend a state university or community college to earn an associate degree in accounting payroll, as having a degree from a community college or university is not a strict requirement. While experience with entering payroll is helpful, it's not always necessary to get started as a payroll specialist. The minimum requirement is a high school diploma or GED, and you can receive on-the-job training as a new hire. With administrative, bookkeeping, or human resources experience, and a diploma or GED, you should be well-positioned to land the job you want.

Another way to land a payroll specialist position is to obtain certification through the National Association of Certified Public Bookkeepers (NACPB) and then take the certification exam. You’ll be able to complete the course, start your job, and get all the payroll training you need because you’ll start out as a payroll clerk. Once you have some experience behind you, then you’ll be promoted to a payroll specialist position, where you may help with payroll administration.

Once you’re in the door and working as a payroll clerk, sign up for the Certified Payroll Specialist certification course to earn additional payroll knowledge. You’ll have that handy for the time that a payroll specialist position opens up.

Payroll Specialist Careers & Salary

Where Might You Work?

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As a payroll specialist, you’ll work in an office that’s usually located within the human resources department. You may work in any large or small company, though only larger companies tend to have robust human resources and payroll departments. In smaller companies, they are often combined into one. You could also work in a government agency, processing payroll and carrying out other payroll-related tasks.

In any setting, you need to be able to communicate well and troubleshoot problems with payroll as you enter it into the computer. You’re also expected to have math skills so you can enter accurate numbers and complete calculations correctly - be sure to hone your payroll practices so your work is accurate. Being organized is a major plus in any type of organization as you won’t have to go searching through reams of documents, time cards, or other paperwork to find something your supervisor needs.

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Career Outlook

The mean hourly wage for payroll and timekeeping specialists was $54,690 as of 2023. Payroll accountants are employed by many, if not nearly all, companies and enterprises. Payroll specialists and certified payroll professionals can expect to see their employment increase by as much as 8% between 2019 and 2029. This is a much faster rate of growth than the average for all other occupations.

Companies are going to continue to hire compensation and payroll specialists who are able to analyze the benefits policies they need to use, select the one best suited to their organization, and make updates to these policies. Payroll specialists may also become involved in creating competitive compensation packages so that companies can attract the most-highly qualified workers.

Find Payroll Specialist Jobs Near You

By now, you should have an idea of what a payroll specialist does every day. When you read through a job ad for a payroll specialist, you’ll read a wealth of information about the position, qualifications, and requirements. This tells you what future employers want you to know how to do and what your daily responsibilities will be, should you receive a job offer. Here are some positions you might see in your search and the qualifications expected.

Staff Accountant/Payroll Specialist:
Applicants must be detail-oriented and experienced in accounting functions. Candidate should show they have worked as a professional accountant for at least three years, with experience in a mid-size firm, preferably a non-profit.

Payroll Administrator/Specialist:
This on-site position requires that the payroll specialist has experience with several payroll systems (Paychex, ADP, and others – these will vary depending on who’s doing the hiring). They must also be an expert at working on Excel with Pivot tables and V Look-up skills.

Payroll Specialist:
The successful candidate for this position should have the following qualifications: One year of Microsoft Excel (Preferred) and one year of payroll experience (Required). They should have strong core math skills, excellent keyboarding skills, both oral and written English skills and communication skills described as “friendly”.
This employee ensures that payroll syncs accurately. They troubleshoot payroll set up problems and make sure that 1st contribution payroll runs correctly. As certified payroll professionals, you and your team should have these skills and more.

Senior Payroll Specialist:
Some smaller boutique accounting firm provide tax and consulting services to businesses and clients who have a high net worth. The payroll specialist will process payroll and payroll reports for more than 200 clients. These reports are required monthly, quarterly, and annually. You will need to have experience leading a team in order to work in this type of situation.

Payroll Clerk:
Employee will assist with payroll processing every two weeks; review electronic time sheets every week and help with importing them from the timekeeping system to the accounting system for payroll.

Frequently Asked Questions

Advancing From Here

After you have been a payroll specialist for a few years, you may want to take steps to be promoted to a senior payroll specialist position. You will need to have the same type of skills for this role so you can carry out your responsibilities - math, organization, and communication skills – along with plenty of experience and the proven ability to lead people.

If you don’t have it yet, you should consider earning a bachelor’s degree, although most senior payroll specialists now have master’s degrees. It is possible to become a senior payroll specialist by holding a high school diploma, but it wouldn’t be easy.

When you reach the top of the organizational chart, you will be a payroll supervisor or administrator.

Are payroll specialists responsible for payroll records?

Payroll specialists are responsible for creating and maintaining payroll records. Payroll specialists will collect timesheet data and payroll records and enter the data into administrative databases and software programs. Payroll specialists also oversee payroll processing.

What do payroll specialists do day to day?

A payroll specialist job will consist of payroll processing, payroll transactions, keeping accurate payroll records, managing payroll taxes, and responding to employee inquiries.

What is the fundamental payroll certification?

The fundamental Payroll Certification from the American Payroll Association is one of the certificate options for aspiring payroll specialists. The fundamental Payroll Certification covers compliance, audits, accounting, payroll processes and supporting systems, labor statistics, core payroll, and paycheck calculation.

What is an accounts payable analyst?

An accounts payable analyst work in the payroll department and are in charge of auditing and processing, managing invoices, and prepare expense reports.

What skills should a payroll specialist have?

Payroll specialists need organizational skills, communication skills, and time management skills. Payroll specialists need computer and software skills, compliance knowledge, and accounting knowledge.

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