Examples of Third-Party Payments

This scenarios illustrate how you can pay third-party people and organizations.

Child Support to a Former Spouse

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.

Court Orders and Student Loans

You must set up third parties for all court orders and student loans. When you create the third-party organization, you designate it as an External Payee before you create its third-party payment method. Once created, you can select this third party from the list of values for the Payee for Order Amount field in the Court Orders and Student Loans calculation card component details.