A Pay Plan May Reference A Third-Party Payor

In addition to referencing the account whose debt is insulated by the pay plan, the pay plan must also reference the account that is responsible for making the payments. We refer to this second account as the pay plan's "payor".

While the payor's account is typically the same as the account whose debt is insulated by the pay plan, you can indicate a third-party payor (e.g., a social service agency) is responsible for making the pay plan's scheduled payments.

If your organization allows third-party payors, you can define each on the third-party payor control table. This control table exists to simplify the data-entry effort when you create a pay plan (as it defines the account associated with the third-party payor).