Employee and Third-Party Cheque Payments

Use the Generate Employee and Third-Party Cheque Payments task to generate cheque payments for employees and third parties who:

Third-party payments are available for all classifications of involuntary deductions:

Before you generate the cheque payments, consider these factors:

An employer can have multiple employee deductions made to the same third-party payee, such as multiple child support orders. Rather than make individual payments for each employee deduction, use the Third-Party Payments Rollup process to combine individual employee deductions and make a single payment.
Create an involuntary deductions element for the process to use the balances required to process the payments.
Run this process to generate your cheques for employees and then run the process again to generate cheques for your third parties. Use the Payee field while running this process to select the appropriate payee.
You may want to exclude specific third parties from the Third-Party Rollup process because they may want an individual cheque per payment. Select the Exclude from Third-Party Rollup Process check box on the Third-Party Payment Methods page to exclude a third-party payee from the Third-Party Rollup process.

Run the Third-Party Rollup process before running the Generate Employee and Third-Party Cheque Payments task. This ensures that you exclude each third-party payment marked for exclusion rollup and you pay them separately.

A third-party payee may want the payments on a date that's different from the employee payment date. For example, you may want to make employee payroll payments on the last day of the month, whereas, make third-party payments 5 days later. Use the Time Definitions task and create a time definition to define a time span of 5 days. Select this time definition in the Time Definition field on the Third-Party Payment Methods UI. Enter the relevant process dates, and run the prepayments process, for example, with a process date of 30, June. This stamps the effective employee payments date as 30, June and the third-party payments date as 05, July. The payments process runs twice:
- Once for the employees with a process end date of 30, June
- Once for the third parties with a process end date of 05 July and an overriding payment date of 05 July
Different banks can have different cheque templates. To accommodate this requirement, you must first create a report category for each separate bank and cheque template. Select the created report category for the requisite bank's payment source so that the process uses the correct cheque template to generate the payments. Use the Organization Payment Methods task to define the payment source for third-party payments. Attach the correct report category for that payment source. Use the Report Category for Third-Party Payee or Report Category for Worker field in the Payee Information section of the Create Payment Source page.

Process Output

The Generate Employee and Third-Party Cheque Payments task generates these two outputs:

Third-Party Cheque Payment

The third-party cheque payment displays the payment details on the cheque stub, along with the physical cheque payable to the third party. The maximum number of payment detail lines included on the cheque stub is 17. If more than 17 detail lines are present in the payment, the cheque stub displays a message to refer to the audit report for details. The cheque stub displays no detail lines.

Rollup provides the ability to combine multiple payments of different employees to one payee, or multiple separate payments of one employee to one payee. For payments aren't rolled up, the process creates individual cheques for each employee payment or each third-party payee.
Third-Party Cheque Payments Audit Report

The cheque payment audit report displays the employee payment details of each third-party cheque generated. The application produces this report automatically as part of the process.