How You Set Deduction and Fee Payment Details for Involuntary Deductions for the US

Use the Involuntary Deduction Payment Details section of the Involuntary Deductions card to identify the payees receiving the payments for the involuntary deductions and their fees.

The persons and organizations you define through the Third Parties task determine what options are available for these fields.

Note: To use a third-party organization payee for involuntary deductions, select External Payee as the party usage code. Then, associate it with an organization payment method.

This field

Is used for these deduction types

What it does

Order Amount Payee

All

This is the payee for the involuntary deduction order. It can be either a third-party person payee or third-party organization.

Note: For child support orders, this value appears on field 22 of the IWO form.

Processing Fee Payee

All except:

  • Bankruptcy

  • Tax Levy

This is the processing fee incurred by the employee. It is payable either to the employer or a third party responsible for processing involuntary deductions.

The legislative bodies define these fees, and if applicable, the payroll process automatically deducts them during the payroll run.

Note: If you don't define a processing fee payee, the payroll process doesn't enforce the fee's legislative limits.

External Organization Fee Payee

All except:

  • Bankruptcy

  • Debt Collection Improvement Act

  • Educational Loan

  • Employee Requested

  • Tax Levy

These are court or agency-ordered fees and are normally reserved for child support orders, but you can impose them for any state-mandated involuntary deduction. If you don't specify a payee, the payroll process doesn't deduct the fee.

Person Fee Payee

Employee Requested

Payee for the employee-requested deduction. If you don't specify a payee, the payroll process doesn't deduct the fee.