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Administrator Guide
Last Updated: 2024-03-08
Create a Payment for an Income Withholding Order or Court Order

Create a Payment for an Income Withholding Order or Court Order

Security: These domains in the Core Payroll functional area:
  • Set Up: Payroll (Payroll Third-Party Payments)
  • Process: Payroll Third-Party Payments Settlement
  • Process: Payroll Third-Party Payments Escheatment
  • Worker Data: Payroll (Income Withholding Orders)
When you enable payroll third-party payments on a deduction recipient, Workday generates payable items on result lines for payments that need to be sent to a third party. You can add this payable item to a settlement run to generate a payment to the deduction recipient.
You can use this process to generate and settle payments for Income Withholding Orders (IWO) or Court Orders.
  1. Access the
    Create Deduction Recipient
     task. For more information, see Create Deduction Recipient.
    The deduction recipient serves as the payee for payroll third-party payments.
  2. Select the
    Enable Payroll Third-Party Payments
     option.
  3. Workday selects the
    Always Separate Payments
     checkbox  by default when you select the
    Enable Payroll Third-Party Payments
     option.
    The
    Always Separate Payments
     option generates an individual payment for each payroll third-party payable item. We recommend that you leave it selected if you're sending the case number or reference number of an income withholding order or court order at the payment level of an electronic payment.
  4. Access 1 of these tasks based on the worker's country:
    • Record AUS Withholding Order for Worker
    • Record CAN Withholding Order for Worker
    • Record FRA Withholding Order for Worker
    • Record UK Court Order for Worker
    • Record US Withholding Order for Worker
  5. Assign the deduction recipient that you created to the income withholding order or court order.
  6. Access the
    Run Pay Calculation
     task. For more information, see Calculate On-Cycle Payroll.
    Workday generates a payroll result with a payroll result line for the income withholding order or court order recorded on the worker.
  7. Access the
    Run Pay Complete
     task. For more information, see Complete Payroll.
  8. Access the
    Create Settlement Run
     or
    Schedule Settlement Run
     task. For more information, see Steps: Use Settlement.
    For Payroll for Australia, Canada, France, and the U.S., the
    Settlement Run Date
     you enter becomes the payment date of all payroll third-party payments generated in that settlement run.
    For Payroll for the UK, the
    Settlement Run Date
     field represents the processing date. Workday uses the
    Settlement Run Date
     to determine the first date for the clearing process.
  9. Add the payroll third-party payable items to the settlement run. To find these items, use the
    All Available Payroll Third-Party Payments
     filter, or custom filters you create. To add payroll third-party payable items manually, select the
    Payroll Third-Party Payments
     payment category from the
    Add
     button. For more information, see Concept: Payroll Third-Party Payable Items.
  10. (Optional) To display Case Number or Reference Number on electronic payments so that the deduction recipient can more easily identify the payment in their bank account, use 1 of these methods:
    • Use Core Connector: Payments Outbound V2 (Enhanced Performance) to retrieve Case Number or Reference Number detail, then output it based on your banking system requirements. For more information, see Concept: Payment Connector.
    • When using a BACS Integration System, you can configure these values in the
      Payroll Third Party Payment - Reference Location
       integration attributes:
      Destination Account Name
      ,
      Service User's Name
      , and
      Service User's Reference
      .
  11. Complete the settlement run.
When you generate a payroll result, Workday identifies the payroll result lines with a Case Number or Reference Number worktag and retrieves the deduction recipient assigned to the IWO or Court Order. Workday generates a payroll third-party payable item for a payroll result line, and the deduction recipient becomes a worktag on the payroll result line.
When Workday generates a payroll third-party payable item, the
Payroll Third-Party Payments
 tab displays on the
Pay Calculation Result for Worker
 report. This tab displays information about payable items and the associated payment status, payment, and payment journal.
For Payroll for Canada and the U.S., you can generate payments for one-time and per-pay-period agency fees for workers. Workday doesn't support employer fees. If you add an agency fee to an income withholding order, the deduction recipient assigned to the IWO is also assigned to the payable item for the agency fee. However, when you create an agency fee, you can assign a deduction recipient that differs from the one assigned to the IWO. When this happens, Workday ignores the deduction recipient override on the agency fee.