Enable departments in payroll

Turn on department tracking

1. Select Payroll, Setup, Payroll Options.
2. On the Main tab, enable Payroll Departments checkbox.
3. Click Accept.

Create a department

Enter basic department details

1. Select Payroll, Setup, Department Maintenance.
2. Enter a two-character department number.
3. Press Enter.
4. Enter the department description.

Assign standard payroll account

Select the standard salary G/L expense account.

• • This account serves as the default earnings expense account for this department.
  • It applies to earnings codes that are set to post by department.
  • The account description displays automatically.

Assign payroll tax expense accounts

Enter general ledger accounts for the following expenses:

• • Employer FICA
  • Employer Medicare
  • Federal Unemployment Insurance
  • State Unemployment Insurance
  • Workers’ Compensation

Configure earnings by department

Override earnings expense accounts (optional)

1. Select the Earnings tab.
2. Select an earnings code.
3. Enter a different earnings expense account if needed.

• The earnings code must be set to Post Exp. by Dept.
• The override posts earnings to the selected G/L account instead of the standard payroll expense account.
• Each department supports a maximum of 10 earnings codes.

Configure deductions by department

Override deduction expense and accrual accounts (optional)

1. Select the Deductions tab.
2. Enter or select a deduction code.
3. Enter the accrual account for the deduction.

• This account will collect employee deductions for the department.
• Employer contribution deduction codes don’t use this field.

Configure Tax Code expenses by department

Override Expense Account by Tax Code and Department (optional)

1. Select the Additional tab.
2. Enter or select a Tax Code.
3. Enter the expense account for the tax item.

• This account will override the standard expense account used set on the main tab.

Configure accrual settings

Enable accrual options

These fields appear only when Allow G/L Accrual Postings is enabled in Payroll Options.

• Select Accrue Wage Expense to accrue wage expense.
• Select Accrue Tax Expense to accrue tax expense.
• Select Accrue Tax Accruals to accrue tax accruals.

Assign accrual and benefit accounts

• Enter the Payroll Accrual Account for posting accrued amounts.
• Enter the Vacation/Sick/Other Liability account.
• Enter the Vacation/Sick/Other Expense account.
• The liability account tracks accrued benefits.
• The expense account offsets the liability account.
• Selecting benefit accounts enables the Benefits Register during data entry.

Post earnings to a different department

Use department field in payroll entry

• In Payroll Data Entry, enter earnings lines.
• In the Dept field, select the department for the transaction.

Validate setup and finalize

Save department setup

• Click Accept to save the department.