DetailsVendor codes define the payees for payments to be issued on behalf of deduction withholdings, such as child support orders, creditor garnishments, insurance carriers, and investment administrators. Vendors also include any tax escrow vendor, any deduction escrow vendor, and any system service invoice vendor.
Vendor codes provide the ability to track and pay premiums and to track vendors for vendor reconciliation and escrow payments. The vendor for a benefit plan should always be defined in the system.
Use the Vendor Codes Table to define those entities which require payment due to employee deductions and employer obligations for benefits provided to employees. Under the payment information section, the payment type is defined for the vendor code. The Vendor Codes Table includes the vendor's bank account and transit code for a direct deposit (ACH) payment. When a vendor is not paid through the system, the vendor can be marked "no payment" and paid through an accounts payable system.
Constraint: Users cannot delete a Vendor record or change the code value under any of the following conditions: (1) if it is assigned to a Company record for payroll sweeps; (2) to a Location record for payroll sweeps; (3) to a Tax Agency record for escrow payments; (4) on a system or employee Deduction record for third-party payments; or (4) if it was used for vendor payments in posted payrolls.
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Types of Benefit Vendors |
Other Types of Vendors |
|---|---|
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Cafeteria plans |
Agencies that collect child support garnishments |
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Medical Plans |
State Disability Insurance vendors for some states |
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Dental Plans |
Tax payment escrow vendor |
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Vision Plans |
Workers Compensation Insurance Plan vendors |
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Life Insurances |
Business Process Outsourcing Provider |
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Disability Insurances |
Business Process Outsourcing Provider |
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Deferred Compensation and retirement plans |
Payroll services vendor |
When premiums for employee insurances are deducted from employee earnings and paid to an insurance carrier, the insurance carrier is a vendor.
When child support payments that are withheld from an employee's pay are sent to a city or county government disbursing office, the city or county government disbursing office is a vendor.
To create ACH Credit TXP addenda records for employee-detail payments for Child Support payments:
In the ACH addenda record for child support payments, a terminated employee's detail has a *Y\, and a non-terminated employee's detail has an *N\ instead.