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Payee Setup

Payee Agency Setup #

Overview #

This knowledge base article provides comprehensive guidance on setting up a Payee Agency in Pro-Pay, a feature used for managing garnishments and other deductions from employee paychecks. Pro-Pay automatically issues checks for all amounts due to these agencies.

Key Features #

  1. Two methods for linking a Payee Agency to an employee
  2. Master List functionality for quick selection of existing payees
  3. Ability to add new payees to the system
  4. Customizable comment field for additional information
  5. Administration fee handling
  6. Weekly exempt amount setting
  7. Garnishment type specification
  8. Pay frequency options
  9. Electronic payment capabilities for certain garnishments and deductions

Setting Up a Payee Agency #

Method A: Selecting from Master List #

  1. Click on “Master List”
  2. Browse the list of previously set up payees
  3. Double-click on the desired payee to link it to the employee

If the payee is not in the list, proceed to Method B.

Method B: Entering a New Payee #

  1. Enter the new payee’s name, address, and other required information
  2. The new payee will automatically be added to the Master List for future use

Additional Fields and Options #

Comment on Check #

Enter any relevant information (e.g., case number, Social Security Number for Tax Levy) in this field. This information will be printed on a separate report sent to the Agency/Payee along with the check.

Administration Fee #

  • If paid by the Collection agency: Enter the admin fee amount, which will be deducted from the payment due to the agency
  • If paid by the Employee: Increase the employee’s deduction by the amount of the admin fee

Weekly Exempt Amount #

Enter the amount to be exempt from deduction or garnishment.

Garnishment Type #

  • Enter “I” for IRS Garnishment
  • Enter “T” if Tips are subject to Garnishment (Note: Check state-specific rules for cash and credit card tips)

Pay Frequency #

Select how often deductions must be paid to the Agency:

  • (P) Per paydate
  • (M) Monthly (on the last pay date of each month)

Electronic Payments #

For certain garnishments, voluntary deductions, and third-party payments, electronic payment options are available. The following fields are required for electronic payments:

  1. Application Identifier (e.g., ‘CS’ for Child Support)
  2. Case Identifier
  3. Non-Custodial Parent Social Security Number
  4. Medical Support Indicator
  5. FIPS Code (if required by the state)

For more detailed information on electronic payments, refer to the Pro-Pay help topic: “Paying Garnishments Electronically”

Troubleshooting #

If you encounter issues while setting up a Payee Agency, try the following:

  1. Ensure all required fields are filled out correctly
  2. Double-check the accuracy of entered information, especially for new payees
  3. Verify that the selected pay frequency matches the garnishment requirements
  4. For electronic payments, confirm that all necessary fields are completed accurately

If problems persist, consult the comprehensive Pro-Pay help menu or contact customer support.

Feedback #

We value your input! If you have suggestions for improving this knowledge base article or encounter any issues not addressed here, please contact our support team through the Pro-Pay help menu or visit our website at https://www.Paysoft.com.