Location/Department allocation of payroll items and taxes

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

This topic explains how the application automatically allocates payroll item, employer contribution, and tax amounts to an employee's location and department. Allocations for a client can be viewed in the Payroll Department Summary report.

Automatic allocations can be overridden during payroll check entry in the Distributions dialog.

Payroll item amount allocations

Deduction and employer contribution payroll item amounts are automatically allocated proportionately to an employee's location and department based on the proportion of the pay amount.

Example icon Example

An employee works in two departments within the same location in Michigan, 60% of the time in Ann Arbor-Production and 40% of the time in Dexter-Sales. The employee's payroll check for $1,000.00 therefore has two distributions, as follows.

Top of page

Tax amount allocations

Subject wage and tax amounts are automatically allocated proportionately to an employee's location and department based on the proportion of the gross subject wage amount. This ensures that if a limit is reached, the taxes are still allocated in an appropriate way.

Example icon Example

An employee earns $6,000.00 in the Ann Arbor-Production department and $4,000.00 in the Dexter-Sales department. When calculating the Michigan SUI tax, the application does the following.

Therefore, the allocations for each department are:

Top of page

Share This