Add, Setup, Create, and Remove Sage 50 Payroll Departments

What Are the Departments In Sage 50 Payroll?

Departments in Sage 50 Payroll help businesses organize employees based on roles, locations, or teams. This simplifies payroll processing, reporting, and cost tracking. Each department has a unique code and name, allowing businesses to assign employees accurately.

Using departments improves payroll accuracy by ensuring wages, deductions, and tax calculations align with the correct cost centers. It also helps generate department-specific payroll reports for better financial insights.

Setting up departments is simple. Employers can create, edit, and assign employees to departments, making payroll management more efficient. This feature is especially useful for businesses with multiple branches or teams.

By categorizing employees into departments, businesses can streamline payroll operations, reduce errors, and gain better visibility into labor costs for improved financial planning.

How to Set Up Departments in Sage 50 Payroll?

Setting up departments in Sage 50 Payroll allows you to organize employee data and payroll processing by distinct business units or teams. This feature streamlines reporting, enhances payroll accuracy, and improves financial management within your organization. The following are the steps to set up departments in Sage 50:

Step 1: Access Payroll Options:

• Navigate to the Payroll menu.
• Choose Setup, then Payroll Options.

Step 2: Enable Department Requirement:

• On the Main tab of Payroll Options, locate the “Require Departments in Payroll” option.
• Select this checkbox to enable the requirement for departments in payroll.

Step 3: Accept the Changes:

• After enabling the department requirement, click on the Accept button to save the changes.

Step 4: Access Department Maintenance:

• Return to the Payroll menu.
• Select Setup, then Department Maintenance.

Step 5: Create a Department Number:

• In the Department Maintenance window, enter a unique 2-character Department Number.
• Press Enter to confirm the entry.

Step 6: Provide Department Details:

• Type a description for the department in the corresponding field.
• Select the standard salary G/L expense account associated with this department.
• This account will be the default earnings expense account for earnings codes linked to this department.

Step 7: Set up G/L Accounts:

• Using the lookup feature, select the appropriate G/L account numbers for the remaining fields.
• Ensure that the accounts chosen in Department Maintenance for Payroll Expense Accounts are expense accounts.
• Choosing the wrong account type (such as a liability account) may lead to calculation errors on the Daily Transaction Report.

Step 8: Configure Earnings Codes (Optional):

• Click on the Earnings tab if you want earnings codes to post to G/L accounts than the one selected in the Standard Payroll field.
• Select the relevant earnings code and assign an earnings code expense account.
• Note: The selected earnings code must have the “Post Exp. by Dept” option enabled.

Step 9: Add Deduction Codes:

• Click the Deductions button in the Department Maintenance window.
• Enter the deduction code you want to add or maintain for this department.
• In the Accrual Account field, enter the general ledger account number to which amounts for this employee deduction code are posted for this department.
• Note: The Accrual Account is not used for employer contribution deduction codes.

Step 10: Accept the Changes:

• Once you have finished setting up departments and making necessary configurations, click on the Accept button to save all changes.

Whenever you go for Sage 50 Timesheet Import you should have to check excel and .CSV compatibility with the current program to avoid any further issue .

How to Create A Company Structure For Setting Up Sage 50 Payroll Departments?

1. Go to the company option
2. Click the Settings tab
3. Hit the Analysis button
4. Choose under the last department or name of the cost center in the list to generate a new department
5. To add an existing department, then choose the desired department/ cost center button
6. Apply the required changes and then hit on TAB button to redirect to the next field
7. Now use the fields named Employee Analysis and then click Report on
8. Add the specific information to an employee for the business
9. Hit OK to apply the changes

You should have to make setup Sage 50 Payroll Backup which helps you to roll back data in case something goes wrong during making departments in Sage 50 Programs.

Why Use Sage 50 Payroll Departments?

When the payroll handling becomes quite complex then Sage 50 payroll is used to record the cost centers and departments. This information is further used in grouping the employees and simplifying discovering the employees in the sort employees and employees list while running reports. Let’s delve into the below sections to set up cost centers and departments in Sage 50 cloud payroll to find the employee’s group or wage breakdown.

You can explore about Sage 50 Payroll Reports, and how user with small steps can create Sage 50 Payroll Journal Reports.

How to Create A Department In Sage 50?

1. Hit the Maintenance button
2. Click Departments
3. The window will appear
4. Choose the company with departments
5. Fill in the department name in the field named Department name
6. Hit the Save option
7. If you have multiple departments, then there will be a department list window
8. Start linking the department to an employee
9. The payroll lets you connect the employees to specific departments across a company.
10. Hit on the Employee menu
11. Select the Employee that you need to edit
12. Choose the employment details
13. Click on the show optional fields
14. Hit the “Departments” button in the field named Department
15. Setting up Department security in Payroll:
16. Open payroll
17. Click the Setup option
18. Hit the Department Maintenance button
19. Locate the Department field to choose the desired department you need to set up the security
20. Click the Security button to launch the field named Department security
21. In the field labeled Use code, write the group codes or user codes for which security should be granted
22. Click on the Accept button, then close the window named Department Maintenance

Setting Up Posting For G/L Account Sage 50

In labor posting, here are the steps to open posting:

1. Open Sage 50 Payroll
2. Click the Setup button
3. Hit Labor Code Maintenance
4. Click on the field named labor code to choose the code
5. Select the field named Wage Expense Account then click on General Ledger account for the code of the labor
6. Hit the Accept button
7. Create a new cost center in Sage 50 payroll:
8. Locate the Company button
9. Hit Settings
10. Choose Analysis option
11. Fill in the desired information in the name and Ref boxes
12. Next, hit OK
13. Assign a particular employee:
14. Locate the desired employee and double-click on it
15. Choose the Analysis button
16. Hit OK
17. Choose to Save

Find out what types of entries and data required to make Sage 50 Payroll Gross To Net Report correctly and smoothly.

Remove Department or Cost Center From Employees In Sage 50

Step 1: Select Relevant Employees:

• Identify and select the employees for whom you want to assign departments or cost centers.

Step 2: Access Global Changes:

• Click on the Tasks menu in Sage 50.
• From the dropdown options, select Global Changes.

Step 3: Choose Departments or Cost Centers:

• In the Global Changes window, click on the Departments option if you want to assign employees to departments.
• Alternatively, click on Cost Centers if you wish to assign employees to cost centers.

Step 4: Assign Employee(s) to Department or Cost Center:

• After selecting the desired option, click on “Assign Employee(s) to Department” or “Assign Employee(s) to Cost Center.”

Step 5: Select No Department or No Cost Center:

• In the following window, locate the options for department or cost center selection.
• Choose the “No Department” option if assigning employees to departments or “No Cost Center” if assigning to cost centers.

Step 6: Confirm Changes:

• Click OK to confirm the selection of “No Department” or “No Cost Center.”

Step 7: Confirm Global Changes:

• QuickBooks will display a prompt asking if you want to make this change for all employees.
• Click Yes to apply the changes to all selected employees.

Step 8: Save Changes:

• Click OK to save the changes made in the Global Changes window.

You should have to make setup Sage 50 Backup which helps you to roll back data in case something goes wrong during making departments in Sage 50 Programs.

How to Delete a Department/Cost Center in Sage 50 Payroll?

1. Go to the company button
2. Choose the Settings tab
3. Hit Analysis, then click on the cost center or department to delete
4. Press F8 on the keyboard.
5. Choose OK

In the End!

Hopefully, the write-up with Sage 50 payroll departments will be complete! In case of any other queries, get connected with a professional team. Use a Sage 50 Chat Support, phone number, or email address for exceptional assistance.

Frequently Asked Questions