Payroll Departments

A Payroll Department is a collection of pre-defined payroll accounts and their associated GL account numbers, along with timecard codes, benefits and deductions. Each employee is assigned a payroll department, which affect amounts and accounting when timecards are posted.

Accounts

When a timecard is posted, the timecard codes determine which payroll accounts have amounts. This screen associates a GL account to every payroll account that timecards could affect.

*Note – If vacation expense account is filled in, payroll timecards will post vacation expense to the selected GL account. If it is not filled in then payroll timecards will post vacation expense to the employees “Salary and Wages” account.

Entries

Select the default timecard entry codes that apply to this payroll department. When an employee is added to the department they will get assigned these codes, however they can be edited on the employee record.

Selecting the Use Defaults option for a code will prevent you from changing any of the other values for this code on the payroll department, and instead use those defined directly on the timecard entry code.

Benefits

Give each benefit a name. The benefit will be further defined when editing the employee record.

Amounts can either be dollar values or percentages.

*Benefits:
A Benefit with Tax checked will increase taxable income (as it should be checked in most cases).
A Benefit with Tax not checked does not change taxable income.

Deductions

Setup each deduction with a GL account and give it a name that will appear in the employee record and on timecards. The deduction will be further defined when editing the employee record.

Amounts can either be dollar values or percentages.

*Deductions:
A Deduction with Tax checked will maintain the same taxable income (as it should be checked in most cases).
A Deduction with Tax not checked will reduce the taxable income amount by the amount of the deduction.

*Note: When amounts are set for deductions and benefits for the payroll department, and an employee is changed to this department they will have these default amounts applied. However each employee amounts can be edited as required.