1. Implementing Payroll for Kuwait
  2. Payment Method Rules Setup Examples

Payment Method Rules Setup Examples

These examples show you can use payment method rules to handle payments to different parties and from different payment sources. Set payment method rules on the Organization Payment Methods page.

Create the Same Payment Source for Pay Workers and Third Parties

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. Add a payment rule in the Payment Method Rules section as stated in these steps:

  1. Ensure that the payment source is set as the default.

  2. Leave the Third-Party Payment, Tax Reporting Unit, and Payment Criteria fields blank.

Create Separate Payment Sources for Pay Workers and Third Parties in a Specified TRU

Your organization is based in one tax reporting unit (TRU1), but you have some workers in another tax reporting unit (TRU2). To comply with TRU1 regulations for out-of-TRU payments, you specify a payment source for the TRU2. In this example, your payment source for TRU1 is already set as the default payment source, so no change is needed for TRU1. For the TRU2 employees. Add a payment rule in the Payment Method Rules section as stated in these steps:

  1. Select the TRU2.

  2. Select the TRU2 payment source.

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

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. In this example, you have a new company requirement that states payments must come from a new payment source, Payment Source B. Add a payment rule stated in these steps:

  1. Create John as a third-party person payee.

  2. Add the Payment Source B payment source and a new payment method rule in your organization payment method.

  3. Select the Third-Party Payment check/cheque box, Jon's name as the third-party person to pay, and Payment Source B in the payment method rule.

Create a Separate Payment Source for Pay Workers in a Specified Department

You use different payment sources to pay employees in the Sales and Development departments. Add a payment rule in the Payment Method Rules section as stated in these steps:

  1. Create a payment method rule for each department.

  2. Enter the department name in the Payment Criteria field.

  3. Select the TRU and payment source.

Note: This scenario has these prerequisites:

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