Third Parties Overview
You create third parties to process payments to external organizations and to people who aren't on the payroll. Use the Third Parties task to create third-party persons or organizations, such as pension providers, professional bodies, or disability organizations.
This shows you the decision steps to create third parties.
Party Usage Codes
For third-party persons, the application automatically assigns a party usage code of External Payee. For third-party organizations, you assign a party usage code.
This table describes the party usage codes for third-party organizations.
Party Usage Code |
Use For |
Examples |
---|---|---|
External Payee |
Organizations when the others party usage codes don't apply. |
State Disbursement Unit for child support payments |
Payment Issuing Authority |
Organizations responsible for issuing instructions for involuntary deductions, such as a tax levy or bankruptcy payment order. Payment issuing authorities don't receive payments. |
Court, agency, or government official |
Pension Provider |
Organizations that provide pension administration for employee pension deductions. |
Stock broker, investment company, benefit administrator, labor union |
Professional Body |
Organizations entrusted with maintaining oversight of the legitimate practice of a professional occupation. |
The American Society for Mechanical Engineers in the US |
Bargaining Association |
Organizations that represent employees in negotiations. Bargaining associations associated with trade unions may receive payments for union fees deducted from an employee's pay. |
The Air Line Pilots Association International (ALPA) in Canada and the US |
Disability Organization |
Organizations that are authorized to make disability assessments. Disability organizations don't receive payments. |
The Royal National Institute of Blind People in the UK |