Setting up client payroll departments

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Payroll departments are client-specific and are used for reporting purposes and to distribute certain payroll setup information to individual employees. Even if the client does not actually have multiple departments, you can use departments to group employees who work in different physical locations or who represent different job families

To set up payroll departments for a client, follow these steps.

  1. Choose Setup > Departments.
  2. In the Departments screen, click the Add button.
  3. In the Identification section, enter a unique description for the department in the Description field.
  4. If your client provides time clock files in ASCII format, enter the two-digit time clock ID. This ID must match the ID that the client is using in their time clock software for this department. This field displays only if one of the client's payroll schedules is set up in the Payroll Schedules dialog to use the Import > Time Clock time entry method.
  5. Click Enter to save the department information.


  • When you add employees for this client, the departments you have added to this screen become available to select from the Department column drop-down list in the Locations and departments section in the Main tab of the Setup > Employees screen.
  • If the client is set up to use separate bank accounts for each department, be sure to note the bank account selection when entering payroll checks.
  • To ensure that tax agent and payroll agent liabilities are paid from the appropriate department's bank account, mark the Always use payroll bank account for payroll liabilities checkbox on the Main tab of the Setup > Vendors screen.

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