Third-Party Rollup Payments
A third-party payment is a payment you make to an external source.
This source could be:
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Court
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Labor union
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Pension provider
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Any person not on your payroll
You can use them in multiple ways.
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Issuing third-party rollup payments
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Excluding third-party payment methods
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Running the Third-Party Payment Register Report
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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:
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A union can have several of its members belonging to the same employer.
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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:
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Individual third-party payments and the corresponding employee deduction info
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All rollup payments and deduction info of employees who share the same rollup payments
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Consolidated total of each rollup payment
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Payments made to each individual payee
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Consolidated total of multiple deduction payments of each employee
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Component name and component reference of involuntary deductions stored on the calculation cards
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Element name of voluntary deductions
Before you run this report, do the following.
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Calculate and verify prepayments.
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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.
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Generate the payments.
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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 |
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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: The check portion includes:
The check stub includes:
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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.
Each subsequent page is dedicated to an individual payee and includes:
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For further info, see Employee and Third-Party Check Payments for the US in the Help Center.