Define Third Parties for Court Orders and Student Loans

You must define set up third parties for all court orders and student loans. And also set up the recipients of the court-ordered deductions as third-party payees.

You can use this for payments made:

• Through the court

• Directly to the individual

• Directly to the organization

Create Third Parties

The Third Parties task creates a third-party payment record for court order payments that are directly sent to the third party. You can send the payments using the regular payment methods, for example, Bankers' Automated Clearing Services (BACS).

Here's how you can set up third parties:

1. Select the Third Parties task from Payroll.

2. Click Create.

3. Select the Party Type.

4. Select the Party Usage Code as External Payee.

5. Click Continue.

6. Enter the name of the third party.

7. Click Add to create the address.

8. Enter the address details.

9. Click Add in contacts section to create a new contact.

10. Enter the contact details.

11. Click Submit.

12. Select the legislative data group for the third party.

13. Click Add in the banks section to add bank details.

14. Enter the required information for the bank account for the third-party payment.

15. Click Save and Close.

You can now select this third party from the list of values for the Payee for Order Amount field. You can do this in the Court Orders and Student Loans card component details.

Non-Third-Party Payment Court Orders

All court orders must have a third-party setup. For non-third-party payment court orders, you can either provide a dummy bank account within the Banking Details component or create a dummy third-party payment method as either cheque or cash. You can then attach this to all your non-third-party court orders.