Payees, or third-party payees, are essentially accounts, organizations, or companies that receive payments on behalf of employees. A payee can be a pension account that employers contribute to on behalf of employees. Also, a payee could be an account that receives payments for employee gym memberships or benefits that are deducted and paid during the payroll process.
Payees and payee categories can be added and reviewed in Payroll Setup > Third Party Payees.
When you create payees, you can link them to both generated earnings, such as employer contributions to pensions, or deductions, such as payments to gym memberships.
In the application, there are two types of payees:
- Custom payees: User-created payees that do not have an entry in the Dayforce Back Office system. These are sometimes called non-system payees.
- System payees: Read-only records for organizations that Dayforce, Inc. deals with to process payments. System-level payees have unique identifiers in the Dayforce Back Office system. Several system payees have been preconfigured for use in Dayforce.
All payees must be assigned to a payee category. The application uses categories to classify and organize individual payees into separate groups for informational purposes. You can create custom payee categories, or use the preconfigured system categories.
Because there are already system payee categories that you can use, you can assign payees that you create to these categories or you can create custom categories and then start creating payees to assign to categories.
In order to use the Third Party Payees feature, you must add it to your role in System Admin > Roles in the Features tab. Below the Payroll Setup > Payroll Setup role feature, the application displays the Third Party Payees role feature and, below it, the Payee Categories and Payees role features.
Third Party Payees and Payee Categories Tabs
The Third Party Payees feature is divided into the Payees and Payee Categories tabs.
By default, the application displays the Payees tab first, followed by the Payee Categories tab because the Payees tab is typically used more frequently. However, you can adjust this ordering in the Features tab of System Admin > Roles.
Overview of using the Payees tab:
- On the left side of the screen, the application displays a panel that lists your organization's payees.
- On the right side of the screen, the application displays the settings of the payee that is currently selected from the left panel. These settings are divided into the following sections:
- General: Contains details about the payee, such as operating country and payee category.
- Address: Contains the payee's address information.
- Payment Method: Defines how payments are to be made to the payee. See Payment Methods for Payees.
- Parameters: Contains any parameters that are related to the payee. These are fields (for example, a benefit plan number) that users fill out when they add the payee to an earning or deduction configuration or employee payroll election. See Add Parameters to Payees.
- State Coverage: (US only)
- The list of payees in the left panel is divided into two headings that you can expand or collapse: Custom and System, and each heading provides a count of the items it contains.
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- You can run a quick search for payees, or you can click the filter icon, and then click Add Filter to add the following search options:
- Active
- Assigned To
- Operating Country
- Payee Category
- Payment Method
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- You can click the hide icon to collapse the left panel to make more room for working on the current payee.
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- With the left panel collapsed, two new icons are displayed on the collapsed panel: the show icon and a menu icon. The show icon expands the collapsed left panel. Click the menu icon to display a sub-menu where you can run a quick search for the payee that you want to review or work on:
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- When you add or edit a payee, the application enforces a unique name and reference code. Because users see this name in earning and deduction configuration and payroll elections, this requirement ensures that users can differentiate between options. For payees created in the Silverlight version of this screen, where this requirement was not in place, the unique name will not be enforced and they can keep their current name value even if it is a duplicate.
When you create a payee, you need to select an option in the Operating Country drop-down list in its details. This drop-down list only includes the countries that your organization uses for Dayforce payroll. For example, if your organization uses Dayforce payroll for UK and US only, the drop-down list does not include Canada.
For more information about third-party payees, see the following topics: