Third-Party Rollup Payments

A third-party payment is a payment you make to an external source.

This source could be:

Court
Labor union
Pension provider
Any person not on your payroll

You can use them in multiple ways.

Issuing third-party rollup payments
Excluding third-party payment methods
Running the Third-Party Payment Register Report
Printing checks for third parties

How You Issue Third-Party Rollup Payments

There are cases when you want to combine multiple payments into a single payment rather than issue multiple payments.

For example:

A union can have several of its members belonging to the same employer.
Multiple employees can have deductions made to the same third-party payee, such as a State Distribution Unit for child support payments.

Use the Third-Party Payment Rollup flow to combine the individual employee deductions and pay the payee through a single payment instrument. Additionally, you can use the Third-Party Payment Register Report and Third-Party Check Payments audit report to validate your data and provide the third-party payee with employee and deduction details.

How You Exclude Third-Party Payment Methods

You might want to exclude specific third parties from the Third-Party Payment Rollup flow because they want an individual check per payment.

Select Exclude from Third-Party Rollup Process on the Third-Party Payment Methods task to exclude a third-party payee from the Third-Party Payment Rollup flow.

Generate the Third-Party Payment Register Report to view the individual payments made.

How You Use the Register Report

Run the Third-Party Payment Register Report to generate and view:

Individual third-party payments and the corresponding employee deduction info
All rollup payments and deduction info of employees who share the same rollup payments
Consolidated total of each rollup payment
Payments made to each individual payee
Consolidated total of multiple deduction payments of each employee
Component name and component reference of involuntary deductions stored on the calculation cards
Element name of voluntary deductions

Before you run this report, do the following.

Calculate and verify prepayments.
Run the Third-Party Payment Rollup flow.

This flow is optional. Use it to consolidate multiple payments made to a third party and generate a single payment.
Generate the payments.
Run the periodic archive.

How You Print Checks for Third Parties

Use the Generate Check Payments for Employees and Third Parties flow to generate check payments. You run the check writer flow against third parties by selecting Third Party as the payee type.

When you do so, it creates two output files.

File name	What it contains
Check File	The printable check and check stub. The check stub lists up to 17 employees rolled-up for a given payee. If the number of employees exceeds the check stub limit, the employee details are printed only on the audit report. Otherwise, the employee details are printed on both the check stub and audit report. If the number of employees doesn't fit the size of the stub, it includes this message: `For employee details, refer to attached report for the given payee`. The check portion includes: Amount Authorized signature line Bank details, including bank routing number in MICR font Check number Date Employer name and address Payee name and address Source account number The check stub includes: Payment amount Check date Document or case number Employee names Period end date Remittance ID
Third-Party Check Payments Audit Report	Documents all details related to employees contributing to the check amount. Sorted by check number. The cover page provides the following payroll info. Payroll run name Process start and end dates Consolidation group Organization payment method Starting check number Each subsequent page is dedicated to an individual payee and includes: Payee name Check number and date Employer name and address Employee details, sorted by name and remittance ID: Name Remittance ID Document or case number Pay period end date Amount

File name

What it contains

Check File

The printable check and check stub.

The check stub lists up to 17 employees rolled-up for a given payee. If the number of employees exceeds the check stub limit, the employee details are printed only on the audit report. Otherwise, the employee details are printed on both the check stub and audit report.

If the number of employees doesn't fit the size of the stub, it includes this message: For employee details, refer to attached report for the given payee.

The check portion includes:

Amount
Authorized signature line
Bank details, including bank routing number in MICR font
Check number
Date
Employer name and address
Payee name and address
Source account number

The check stub includes:

Payment amount
Check date
Document or case number
Employee names
Period end date
Remittance ID

Third-Party Check Payments Audit Report

Documents all details related to employees contributing to the check amount. Sorted by check number.

The cover page provides the following payroll info.

Payroll run name
Process start and end dates
Consolidation group
Organization payment method
Starting check number

Each subsequent page is dedicated to an individual payee and includes:

Payee name
Check number and date
Employer name and address
Employee details, sorted by name and remittance ID:
- Name
- Remittance ID
- Document or case number
- Pay period end date
- Amount

For further info, see Employee and Third-Party Check Payments for the US in the Help Center.