Examples of Third-Party Payments
These scenarios show you how to pay third-party payees. Third-party payees can be an individual person or an organization.
Child Support to a Former Spouse
While this example illustrates payment directly to a third-party person, most child support payments are payable to a third-party organization such as a State Disbursement Unit.
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:
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Create Mary as a third-party person.
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Create Mary's third-party payment method and select the payroll relationship for John.
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Add the child support order to John's involuntary deduction calculation card and select Mary's name in the Order Amount Payee field.
Organization Processing Fee to a County Sheriff's Office
The County Sheriff's office receives an organization fee on garnishment payments. When you create the third-party organization, designate it as an external payee before you create its third-party payment method. When you add the garnishment order to the employee's involuntary deduction calculation card, select the County Sheriff in the Organization Fee Payee field.