1. Implementing Payroll for Canada
  2. Examples of Payment Method Rules

Examples of Payment Method Rules

Here are some scenarios to illustrate how you can use payment method rules to handle payments to different parties and from different payment sources. You set payment method rules on the Organization Payment Methods page in the Payment Distribution work area.

Pay Workers and Third Parties Using the Same Payment Source

Your organization pays all workers and third-party payees from the same source bank account. In this scenario, no special payment method rules are required. Ensure that the payment source is set as the default and that you leave the Third-Party Payment, Tax Reporting Unit, and Payment Criteria fields blank.

Pay Workers and Third Parties in the Same TRU Using Separate Payment Sources

You currently pay everyone in your TRU using Payment Source A. Your company recently employed a private consultant, Jon Moore, from a third-party auditing company. A new company requirement states that payments must come from a new payment source, Payment Source B. You create John as a third-party person payee. In your organization payment method, you add the Payment Source B as the payment source and a new payment method rule. In the payment method rule, you select the Third-Party Payment check box, John's name as the third-party person to pay, and Payment Source B.

Pay Workers in a Specified Department Using a Separate Payment Source

You want to pay employees in the Sales and Development departments using different payment sources. You create a payment method rule for each department, enter the department name in the Payment Criteria field, select the TRU and payment source.

This scenario has the following prerequisites:

  • An information element exists named Default Payer with an input value named Payment Criteria.

  • A formula exists that retrieves department names and the assignment IDs of the employees associated with them.

  • The processing rules in the Default Payer element refer to the formula. The result rules target field is set to Payment Criteria. The returned field is set to the value specified in the formula.