Create Third Parties Options

You create third parties to process payments to external organizations and people who aren't on the payroll. Use the Third Parties task from the Payroll work area to create third-party organizations for payments, such as pension providers or professional bodies, or third-party organizations, such

This shows you the steps to create third parties.

Party Usage Codes

Creating third parties on the Third Parties page creates corresponding records for them as trading community members. For third-party persons, the application automatically assigns a party usage code of External Payee. For third-party organizations, you assign a party usage code.

The following table describes the party usage codes for third-party organizations.

Party Usage Code	Use For	Examples
External Payee	Organizations that can be associated with employee calculation cards or element entries. Use this party usage code for organizations when the others don't apply.	Child Maintenance Service for child support payments
Payment Issuing Authority	Organizations responsible for issuing instructions for involuntary deductions, such as a tax levy or bankruptcy payment order. Payment issuing authorities don't receive payments.	Court, agency, or government official
Pension Provider	Organizations that provide pension administration for employee pension deductions.	Stock broker, investment company, benefit administrator, labor union
Professional Body	Organizations entrusted with maintaining oversight of the legitimate practice of a professional occupation.	The Institute of Mechanical Engineers
Bargaining Association	Organizations that represent employees in negotiations. Bargaining associations associated with trade unions may receive payments for union fees deducted from an employee's pay.	British Airline Pilots' Association (BALPA)
Disability Organization	Organizations that are authorized to make disability assessments. Disability organizations don't receive payments.	The Royal National Institute of Blind People in the UK