Examples of Third-Party Payments

These scenarios show you how to pay third-party payees. Third-party payees can be an individual person or an organization.

Child Support to a Former Spouse

While this example illustrates payment directly to a third-party person, most child support payments are payable to a third-party organization such as a State Disbursement Unit.

John Smith is an employee at your organization. Mary Smith receives a child-support payment each payroll period that's deducted from John's salary. To set up payments for Mary:

1. Create Mary as a third-party person.

2. Create Mary's third-party payment method and select the payroll relationship for John.

3. Add the child support order to John's involuntary deduction calculation card and select Mary's name in the Order Amount Payee field.

Organization Processing Fee to a County Sheriff's Office

The County Sheriff's office receives an organization fee on garnishment payments. When you create the third-party organization, designate it as an external payee before you create its third-party payment method. When you add the garnishment order to the employee's involuntary deduction calculation card, select the County Sheriff in the Organization Fee Payee field.