Voluntary Deductions and Pensions Reference Output to BACS File

You can create a third-party payment reference that the BACS will use to output on all third-party payments. You can add a reference code for voluntary deductions or pension deductions, which can be used as output on your BACS file.

You must perform additional setup to successfully run this.

Set Up Voluntary Deductions Element

For Voluntary deductions, you must create a third-party payment using element entry. Here's how you can do this:

1. Create a voluntary deduction using the element template. Don't select a secondary classification. This creates 3 new elements, the base element, the calculator element, and the results element.

   Note: When you set up the element, ensure that Unit of Measure is set to Character. You must select the options Displayed, Allow User Entry, and Create a Database Item. Also, ensure you select the same in the results element.

2. Change the priority of the calculator and results elements. For example, if the priority for the base element is 8500, you can set the calculator to 8501 and results to 8502.

3. For the base element, add two new input values, for example, Payee and Reference Code. The other database elements are automatically created to be used in the fast formula. The input element Payee holds the value for the third party.

4. Similarly, set up the results element. The input value Reference Code holds the value for reference that's displayed on the BACS file.

5. In the calculator element, check that the result rule is mapped to the target value Reference Code. Update the fast formula to refer to the input, and the formula result rule to retrieve this input and output into the results element.

   • If you created the element at the payroll relationship level, the DBI should be <element name>_REL_ENTRY_VALUE.

   • If you created the element at the Assignment level, the DBI should be <element name>_ASG_ENTRY_VALUE.

     Note: You must substitute your element name into the formula to replace the sample name.

6. Add the results PAYEE and REFCODE to the status processing rules for the Calculator element.

7. Add the Results element Pay Value to feed the Third-Party Payment Balance.

8. Set up the third-party payment method type BACS. Ensure that the check box Separate Worker Payments by Reference is selected. Add this payment method to the list of payment methods for the payroll definitions.

9. Add the voluntary deductions element entry for your employee.

   Note: The templates created are available in the third-party list of values. For previous or older templates, get the Third-Party Payee ID from the table HZ_PARTIES. For example, to get the party ID for the Third-Party Name, you can use; select party_id, party_name from hz_parties where party_name = 'Demo_Third_Party.

Set Up Pensions Element

For pensions, you must create a pensions element using the element template. Here's how you can do this:

1. Create a Pre-Statutory Pension deduction using the element template. The pre-statutory deduction element generates the objects for calculation cards. Select the secondary classification Pension Plan Pre-Statutory.

   This creates 5 new elements; base element, calculator element, distributor element, employee results, employer results.

2. Modify the employee results element. Update the employee and employer contribution element by setting the reference to Unique Reference.

3. Set up the third-party payment method type BACS. Ensure that the check box Separate Worker Payments by Reference is selected. Add this payment method to the list of payment methods for the payroll definitions.

4. Add the Pre-Statutory deduction card and components to the set of employees.

Benefits and Pensions Calculation Card

In the Benefits and Pensions calculation card for the employee, you can update the input in the Enterable Calculation Values for Calculation cards tab.

You can now run payroll and view the results in the BACS file.