Concept: Payroll Third-Party Payments

Workday displays a snapshot of a deduction recipient in the

Effective Dated Details

section when you access a deduction recipient. Workday generates payroll third-party payable items using the most current active snapshot with an effective date less than or equal to the period end date of the payroll result. This snapshot will be associated with the payable item. For more information, see Create Deduction Recipient for more detail on the various options available to select on deduction recipients specifically for the Payroll Third-Party Payments feature.

Once you have enabled payroll third-party payments on a snapshot of a deduction recipient, you can only opt out within that snapshot if one of the following is true:

You have paid all payroll third-party payable items.
No payroll third-party payable items exist for the deduction recipient.

When modifying snapshots, you can:

Add rows dated after the current effective snapshot. When you add a new snapshot, Workday copies the configuration of the prior snapshot to the new one.
Edit the effective date when no payable items exist.
Update the
Country
,
Category
,
Enable Payroll Third-Party Payments
, and
Inactive
fields when no payable items exist or all payable items are paid.
Payment instructions for a deduction recipient may change. To support this, you can update
Payment Type
,
Always Separate Payments
,
Address
, and
Settlement Bank Account
for the deduction recipient snapshot associated with a payable item until you add the payable item to a settlement run.

Workday doesn't compare the effective date of the snapshot to the subperiod end date where proration occurs.

When you create a payroll result line for a retro adjustment, Workday compares the effective date of the most current active snapshot to the period end date of the on-cycle or off-cycle result the retro adjustment is included in.

You can deactivate a deduction recipient snapshot or deactivate the entire deduction recipient. When you deactivate a snapshot, Workday can still generate payable items for other active snapshots. If you deactivate a snapshot and there are other snapshots with an

Active

status, Workday can still generate payable items for the active snapshots. For example, if you post an off-cycle result to a payroll period where a snapshot with an active status is within the period end date of the off-cycle result, Workday generates payable items where applicable.

If you no longer want to generate any payments for the deduction recipient, you must deactivate all snapshots.

You can map multiple pay components to a deduction recipient using the Payroll Third-Party Payments grid in the deduction recipient snapshot. To map pay components to a deduction recipient, add a row to the grid for each pay component. To add a row to the grid, click the

Add

button under the

Payroll Third-Party Payments

header when creating or editing a deduction recipient. A row is added with these fields:

To generate a payroll third-party payment to a deduction recipient, you must add payroll third-party payable items to a settlement run. For more information, see Concept: Settlement Processing.

Once you settle a payment, you can:

Cancel payment

: You can cancel a payment if it has not been reconciled to a bank statement. Cancelling a payment does the following:

Cancels the payment accounting journal.
Makes the payable items from the original payment available to add a new settlement run to generate a new payment.

For more information, see Cancel Payments.
Return payment
: When a bank has returned a payment, use the
Create Payment Return Statement
task to record the return. You can also handle the return payment transaction in the
Settlement.
For more information, see Steps: Create Payment Returns.
Stop payment
: To record a stop payment on a check initiated with your bank within Workday, you can use the
Stop
option in the check’s Action Menu to indicate the check has been stopped. For more information, see Record Stopped Payments.
Void payment
: You can void a check payment during the cancel payment process, the escheat payment process, or by using the
Record Voided Checks
task.
Escheat payment
: Escheat unclaimed check payments. You can use the
Find Escheatable Items
task to locate payments for escheatment. For more information, see Escheat Payments.

You can reconcile payroll third-party payments to the bank statement of the bank account the payment was settled on. This enables proper auditing of cleared or rejected payments between Workday and the bank. For more information, see Concept: Bank Account Reconciliation.

The

Acknowledgment History

tab in the settlement run displays acknowledgment of the payment received from the bank. You can load a Payment Acknowledgement file received from your bank using an EIB for the Put Payment Acknowledgement Message web service. For more information, see Concept: Electronic Payment Acknowledgment.

You can generate supporting documentation for payroll third-party payments sent to deduction recipients using the Generic Remittance File Framework. Depending on your data source, you can generate remittance files in PDF or CSV format. To use either of these data sources, download custom reports and layouts through the Configuration Catalog in Customer Central. For more information, see Concept: Configuration Catalog.

For PDF remittance, Payroll Third-Party Payments is the primary data source. To generate PDF remittance files, use:

Custom Report: PTPP PDF Remittance Template
Document Layout: PTPP Remittance Advice
Business Form Layout: PTPP Remittance Advice PDF
Remittance Print Layout: PTPP Remittance Advice PDF

For CSV remittance, the Get Payments web service is the data source. To generate CSV remittance files, use the INT PTPP CSV Remittance Advice sample integration system.

For more information on generating remittance files, see Steps: Set Up Remittance Advices Using Setup Rules.

For Payroll for the U.S., the business form layout, BIRT – Payroll Third-Party Payments Check (USA) enables you to print checks of payroll third-party payments. This layout is available for download in the Configuration Catalog and includes:

BIRT – Payroll Third-Party Payments Check (USA) custom report file. This is the data source for the fields printed on the check.
Payroll Third-Party Payment USA Check.rptdesign custom report design file. You can update it using Workday Studio.

To include the business form layout in a report design check print layout:

The Case Number displays in the remittance portion of the check when you include the payable items of multiple orders in the same check payment. As a result, you don't need to enable the

Always Separate Payments

option on the deduction recipient when using this business form layout.