Employee and Third-Party Check Payments Overview

Once you have calculated payroll, you're ready to pay your employees and third parties. Use the Generate Payments for Employees and Third Parties flow to generate check/cheque payments.

This process selects employees and third parties processed in the prepayments process within the payroll run and have a payment method of check/cheque.

Before you generate the check/cheque payments, consider these scenarios:

• You may have multiple employee deductions made to the same third-party payee, such as multiple child support orders. Rather than make individual payments for each individual employee deduction, use the Run Third-Party Payment Rollup process to combine individual employee deductions and make a single payment to the payee.

• You may have both employees and third parties to pay. Use the Run Generate Payments for Employees and Third Parties to generate your checks/cheques for employees and then again to generate checks/cheques for your third parties. Use the Payee Type field to designate which will be included in the process.

• You may have specific third parties to exclude from the Run Third-Party Payment Rollup process to produce an individual check/cheque per payment. Select the Exclude from Third-Party Payment Rollup Process check box on the Third-Party Organization Payment Methods page to exclude a third-party payee from the Run Third-Party Payment Rollup process.

• You may have a third-party payee that requires payments on a date that's different from the employee payment date. For example, your employee payroll payments are on the last day of the month but you may want to make third-party payments 5 days later. Use the Time Definitions task to create a time definition defining a time span of 5 days. Select this new time definition in the Time Definition field on the Third-Party Person or Organization Payment Methods UI. Enter the relevant process dates and run the prepayments process, for example, with a process date of 30, June. This stamps the effective employee payments date as 30-June and the third-party payments date as 05-July. The Generate Payments for Employees and Third Parties process is run twice:

  • Once for the employees with a last day of the month process end date, such as 30-June

  • Once for the third parties with a process end date of plus 5, such as 05-July, and an overriding payment date of 05-July

• You may have different banks with different check/cheque templates. To accommodate, you must create a report category for each separate bank and check/cheque template and then attach it to the payment source:

  • Define report categories for each unique bank and check/cheque template combination to create a report category for each separate bank and check/cheque template. Use the Organization Payment Methods page to associate the report category for third-party payee and report category for worker to the payment source.

  • Select the new report category for the requisite bank's payment source so that the process uses the correct check/cheque template when generating its check/cheque payments. Use the Organization Payment Methods task to define the payment source for third-party payments. Attach the correct report category for that payment source. Use the Report Category for Third-Party Payee or Report Category for Worker field in the Payee Information section of the Create Payment Source page.

• Define report categories for each unique bank and check/cheque template combination if you want to create a report category for each separate bank and check/cheque template. The report category for third-party payee and report category for worker are associated to the payment source in the Organization Payment Methods page.