Considerations for moving a Payroll employee to another company
Description
Cause
Resolution

Review the information below to determine if you can move the employee or if you need to create a new employee in the second company folder.

The process to move and reconcile employee information can be complex. If you need assistance, contact your Sage Consultant.

Don't move the employee

We recommend setting up a new employee in the second company instead of moving the employee if the following criteria are true:

  • The two data folders don't use the same Federal or State tax payer IDs: If the IDs are different, set up a new employee in each folder to keep reporting separate. You'll issue two W-2s for the employee, one for each company tax ID.
  • The employee has checks and Payroll totals in the current or prior year: If they have recent activity, we recommend that you don't move them to the second folder. Moving existing activity can cause reconciliation issues if the two companies don't share other files, like General Ledger.
  • You don't use the same Payroll set up in both companies: Create a new employee in the other company if you use different pay IDs, deductions, fringes, unions, etc.

Move the employee

You can move the employee to another company folder if:

  • Both companies use the same tax payer IDs.
  • Both companies have the same Payroll setup.
  • Both companies are in the same Payroll period (month and year).
  • The employee doesn't have any recent checks or totals (within the last two years).

Employee Totals

Move

Records to verify

Application Reconciliation (CM/GL/BL/JC)

Taxes 

 

No Activity Ever

Employee

Verify Pay, Deduction, Fringes, Tax records setup match employee setup

No records to reconcile. 

No Change

 

No Activity for 2 years

Employee 

Verify Pay, Deduction, Fringes, Tax records setup match employee setup

Doesn't affect reconciliation from Payroll to interfacing applications. 

No Change

 

No Activity for 1 year

Employee + Checks

  • Verify Pay, Deduction, Fringes, Tax records setup match employee setup.
  • Verify EIN Match
  • Verify Periods Match

If Company doesn't share files, Payroll can have issues reconciling with interfacing applications.  

  • Includes the employee in prior year tax reports.
  • Doesn't affect current year taxes.
 

Current year has activity

Employee + Checks

(we recommend that you don't move)

  • Verify Pay, Deduction, Fringes, Tax records setup match employee setup
  • Verify EIN Match
  • Verify Periods Match

If Company doesn't share files, Payroll can have issues reconciling with interfacing applications. 

  • Includes the employee in current year and prior year tax reports.
  • Will cause tax reconciliation issues if company folders don't share tax files.
  • Will cause tax reconciliation issues if the companies don't report under the same tax payer ID.

 

Verify setup and file locations

▼ Steps to verify setup and file locations

Federal or State taxpayer IDs

  1. Go to Payroll, Setup, Taxes, Tax Group.
  2. Locate the federal or state group and confirm the ID.
  3. Verify if the companies use the same ID.

Moving Employees between different entities will bring over the employee/employer tax information. This can cause reconciliation issues, even within reports for prior periods.

Month and Year

  1. Go to Payroll, File, Company Settings, PR Settings in the original company.
  2. Confirm the current period.
  3. Go to Payroll, File, Company Settings, PR Settings in the new company.
  4. Verify if the periods match.

If the company periods don't match, move the employee after closing periods so they match.

Employee Totals

  1. Go to Payroll, Reports, Employee Totals, Employee Totals by Period.
  2. Use Ranges to select the employee.
  • Does the employee have any totals that do not apply to this company?
  • If the companies don't share Payroll transaction files, you'll need to move checks, too.

Service Management employees

  1. Go to Payroll, Setup, Employees, General, Service Management Employee.
  2. If the employee is a Service management employee, disable this setting before moving.

Moving the employee may require that you remove the technician in Service Management as well.

Employee Setup

  1. Go to Payroll, Setup, Employees, General, Pay Group in the original company.
  2. Note the pay group assigned.
  3. Go to Payroll, Setup, Pay Groups.
  4. Note the setup of the pay group.
  5. Confirm the new company folder has the same pay group set up, or change the employee pay group.

Verify entry info

  1. Go to Payroll, Setup, Employees, Entry Info in the original company.
  2. Note the Department, Union, and Certified class.
  3. Check the setup of each item in the Setup menu.
  4. Confirm the new company folder has the same setup available, or change the employee setup.

Pays, Deductions, and Fringes

  1. Go to Payroll, Reports, Setup in the original company.
  2. Run the following reports with Ranges to select the employee:
    • Employee Pay
    • Employee Fringes
    • Employee Deductions
  3. Verify that the same items exist in the new company, or change the employee setup.

Data files and locations

  1. Go to File, Company Settings, File Locations in the original company.
  2. Note if any files have locations designated.
  3. Go to File, Company Settings, File Locations in the new company.
  4. Note if any files have locations designated.

If either company has File Locations, do they match between the two companies? Do both companies have blank lines for the File Locations?

If both companies have blank File Locations, or the companies have File Locations but they don't match, then the companies don't share data files. Moving the employee between companies that don't share files can cause reconciliation issues.

Key files to verify for File Locations
  • PR Tax
  • PR System
  • PR Transaction
  • GL Transaction
  • GL Master
  • CM Transaction
  • CM Master
  • EQ Master
  • EQ Transaction
  • JC Transaction
  • JC Master

 

Steps to duplicate
Related Solutions

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