I want to assign employees to a department for payroll. How do I do that?

My quickbooks does not have the option under 'payroll settings' even though I have locations set up.

You're on the right track, May-I-Ask.

We've updated the settings on how to view and edit your current payroll preferences in QuickBooks Online. Rest assured that I've got the steps to locate the option.

You may follow these steps:

1. Go to the Gear icon and then select Payroll settings.

2. On the Payroll Settings window, click the pencil icon beside Accounting.

3. Click the pencil icon beside Class Tracking on the Accounting preferences screen.

4. Select the I use different classes for different employees option, then click Continue.

5. Click Done twice once finished.

For your visual reference, I've attached some screenshots below.

To learn about what you can do in class tracking in QuickBooks Online, you may check this article: Class and Location Tracking.

Additionally, you may want to consider running reports by class in QuickBookBooks Online. Doing so helps you keep a close eye on each segment in your business.

Please let me know if you have further questions. I'll be around to answer them.

I do not have the Class Tracking option in my Accounting preferences window. 

Let's make sure that we have turned on the Class Tracking feature, 

caitlin35.

I've got the steps on how we can turn on this option. Let me guide you with these steps:

1. From the Gear icon, select Account and settings.
2. Go to the Advanced tab.
3. Click the Categories section.
4. Toggle the Track Classes button.
5. You can also tick the Warn me when a transaction isn’t assigned a class option.
6. Click Save and then Done.

Afterward, the option to select I use different classes for different employees will be available.

You can bookmark this reference for more information as to how class tracking works in QuickBooks: Turn on class tracking in QuickBooks Online.

Let me know if there's anything that I can help. Have a good one!

We use Classes to track our lines of business, and Locations for Departments.  We also want to track employees by Department.  Your solution uses both Class and Location to track departmental and payroll expenses...so that seems to foreclose our ability to track our lines of business.  Any suggestions?

You can use classes to track your employees by department, KBKings.

You can do this by going to the accounting preference section in the payroll settings:

1. Go to the Gear icon and then select Payroll settings.

2. On the Payroll Settings window, click the pencil icon beside Accounting.

3. Click the pencil icon beside Class Tracking on the Accounting preferences screen.

4. Select the I use different classes for different employees option, then click Continue.

5. Click Done twice once finished.

To learn about what you can do in class tracking in QuickBooks Online, you may check this article: Class and Location Tracking.

Don't hesitate to leave a comment below if there's anything else you need.

>Right now I have Classes setup for Line of Business.

>Right now I have Locations set up as Department for tracking department expenses, but for Payroll, which I want to add.

So, if we use Classes for Departments for Employee Payroll, then I can't use Classes for Line of Business reporting.

Any suggestions?

Welcome back, @KBKings.

At this time, QuickBooks Online only allows you to track classes for Line of Business when creating sales or expense transactions. You'll want to utilize the custom fields to track them.

I know that using location and classes for payroll is beneficial to you and your business. However, tracking classes in QuickBooks is working as designed.

Please keep in touch if there's anything else I can do to help you succeed with QuickBooks. I've got your back.