How to Get Your Payroll Certification

Payroll can be frustrating. But HR pros know better than anyone how to turn frustrations into opportunities for growth. Payroll certification in particular can be an excellent way to grow your HR career and master this critical role in your organization.

Here’s what you need to know—from why payroll certification matters to how you can become a Certified Payroll Professional (CPP).

What is Payroll Certification?

First, payroll certification should not be confused with “certified payroll,” which refers to a federal contractor compliance documentation. Instead, payroll certification refers to the process by which human resources professionals demonstrate their mastery of the knowledge and skills needed to successfully carry out payroll responsibilities.

So, it may help to begin by reviewing what payroll responsibilities can include. Payroll professionals are usually responsible for:

• distributing, collecting, and managing employee payroll documents, such as Form W-4 and direct deposit information.
• collecting and calculating timesheet information for determining hourly and overtime pay.
• calculating and managing tax withholdings and benefit deductions.
• issuing paychecks to employees.
• addressing payroll questions from employees and resolving payroll issues.
• complying with federal and state payroll regulations.

Depending on the size of the organization, payroll may be the responsibility of an HR Party of One, a team of HR pros, or even a third-party payroll processor.

To be clear, though, certification is not a requirement of running payroll. But there are several reasons why HR pros should seek certification. Payroll certification matters because:

• payroll mistakes are costly, both on the level of the individual employee and on the company-wide level.
• the complexity and compliance requirements of payroll responsibilities means that training and experience go a long way.
• it provides access to a network of payroll professionals who can advise on difficult issues and offer opportunities for career growth.
• employers prefer to hire payroll-certified candidates—and they’re willing to pay for it!

The American Payroll Association (APA) offers two levels of certification:

1. Fundamental Payroll Certification (FPC) for entry-level career-seekers
2. Certified Payroll Professional (CPP) for more experienced practitioners

The distinction between FPC and CPP is similar to HRCI’s aPHR and PHR certifications as well as SHRM-CP and SHRM-SCP: anyone is eligible to take the former exam, but only experienced practitioners are eligible to take the latter.

For 2022, the FPC exam costs $320 for APA members and $395 for non-members while the CPP exam costs $380 for members and $550 for non-members. Both exams are offered by appointment within certain windows of time in the spring and fall of each year. The exam must be updated regularly to reflect changing regulations.

It costs $275 per year to be an APA member with an additional $35 enrollment fee for new or lapsed members. On the APA website, you can find discount codes to waive the enrollment fee.

We’ll cover how you can study for both the FPC and CPP exams, but first, let’s consider how you can become eligible to take the CPP exam.

Three Paths to CPP Eligibility

As mentioned, no experience is required to take the FPC exam.

The CPP exam, on the other hand, does have eligibility requirements based on experience and education. CPP certification should be your ultimate goal, so if you already meet the eligibility requirements for taking the exam, you can skip the FPC.

The APA defines “the practice of payroll”—or payroll experience—as “direct or related involvement in at least one of the following:

• Payroll Production, Payroll Reporting, Payroll Accounting, Payroll Systems, and Payroll Taxation;
• Payroll Administration; or
• Payroll Education/Consulting”

The APA outlines three ways payroll professionals may meet these CPP eligibility requirements:

• The experience-only path requires:

Experience in the practice of payroll for three or more years total in the five years before submitting the exam application. 

This is the most straightforward path to CPP exam eligibility, but it is also the longest one.

• The APA-training path requires:

Experience in the practice of payroll for at least the last 24 consecutive months 

AND 

In that time frame, completion of ALL courses within ONE of the following options:

• • • • Option 1:

        • Payroll Practice Essentials and

        • Intermediate Payroll Concepts and

        • Advanced Payroll Concepts and

        • Strategic Payroll Practices

      • Option 2:

        • Foundations of Payroll Certificate Program and

        • The Payroll Administration Certificate Program

        • Option 3:

        • Certified Payroll Professional Boot Camp

• The FPC path requires: 

Experience in the practice of payroll for at least the last 18 consecutive months

AND

In that time frame, completion of ALL courses within ONE of the following options:

• • • • Option 1:

        • Intermediate Payroll Concepts and

        • Advanced Payroll Concepts and

        • Strategic Payroll Practices

      • Option 2:

        • The Payroll Administration Certificate Program

      • Option 3:

        • Certified Payroll Professional Boot Camp

AND

Successful completion of FPC exam

This last path is the shortest, but also the most involved and expensive. Keep in mind that all of the courses required—and the FPC exam—have registration and administrative fees.

Seeking payroll certification can be costly, but it’s an investment in your career as an HR pro. It’s also a sound investment for your employer. The APA even provides a letter template you can download and customize to convince your employer to fund your membership and certification.

Of course, registration is only the beginning. You still have to pass the FPC or CPP exam in order to get your certification.

How to Study for FPC and CPP Exams

The APA provides many free and paid study resources for both exams, including a variety of delivery methods—a few of which we’ll cover here. The APA also recommends that “no one source should be considered the only basis for preparation.” So, we’ll cover a few of your non-APA study options, too.

Let’s start with how to study for the FPC exam. To get started, you should download the APA’s free FPC Candidate Handbook, which contains study references and sample questions as well as other information about the exam itself. 

The APA also provides a breakdown of the content that will be covered on the exam:

• Core Payroll Concepts (29%);
• Compliance / Research and Resources (17%);
• Calculation of the Paycheck (24%);
• Payroll Process and Supporting Systems and Administration (7%);
• Payroll Administration and Management (7%);
• Audits (8%); and 
• Accounting (8%)

It’s recommended you study at least 6 to 12 weeks before taking the FPC exam. You can take individual courses based on each content area, but the APA also offers a comprehensive 12-week FPC Boot Camp, which costs $1,689 for members or $1,974 for non-members. 

More affordable study guides and practice tests are available from Mometrix Test Preparation and ExamEdge.

Remember, though, you are not required to complete any coursework in order to take the FPC, but it is recommended in order to help you study.

For the CPP exam, you should first download the APA’s free CPP Candidate Handbook, which explains the eligibility requirements in more detail and provides study reference and sample questions.

The content breakdown for the CPP is slightly different than the FPC. Here’s what will be covered on the CPP:

• Core Payroll Concepts (24%);
• Compliance / Research and Resources (16%);
• Calculation of the Paycheck (20%);
• Payroll Process and Supporting Systems and Administration (12%);
• Payroll Administration and Management (10%);
• Audits (9%); and 
• Accounting (9%)

The APA recommends you study at least six months before taking the exam. If you’ve not yet met the eligibility requirements to take the CPP, then you can study while getting hands-on experience at the same time.

For the APA training path to CPP eligibility, you’ll need to take APA courses. As with the FPC, you can take individual courses by content area, or you can enroll in a comprehensive 21-week CPP Boot Camp, which costs $2,349 for members or $2,632 for non-members.

More affordable study guides and practice tests are available from Mometrix Test Preparation and CPPStudyGuide.com.

Whatever study materials you choose, it’s strongly recommended you follow these three steps:

1. Take a practice test first to identify the areas you need to focus on most.
2. Make a study plan based on your exam date and on which content areas to prioritize.
3. Combine different study methods—study groups, study guides, coursework, flashcards, etc.

Payroll certification is not easy, but it’s definitely achievable for a committed HR pro like you. The difficulty makes payroll certification something to be proud of—and something to get paid for!

Additional Resources

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• BerniePortal Blog—a one-stop-shop for HR industry news
• HR Glossary—featuring the most common HR terms, acronyms, and compliance
• HR Guides—essential pillars, covering an extensive list of comprehensive HR topics
• BernieU—free online HR courses, approved for SHRM and HRCI recertification credit
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