For those amounts which are withheld from employee’s paychecks and need to ultimately be paid to third parties, Interact HRMS offers a Third Party Payables module which allow the user to configure how these payments should be handled.  Payments can be posted to the organizations Accounts Payable module or the payment can be processed directly with an ACH bank file that will be produced by the Third Party Payables module and the correct JV entries that will need to go to your General Ledger module.

Third Party Payables can be used for making payments to benefit providers like insurance companies, social security or other agencies.  In addition, the same module can be used for processing of Tax payments for those taxes which are withheld from the employee.

Payments can be processed as electronic payments in the appropriate format for your bank to be able to process, or through check printing, depending on the need.   A payment advice can be produced indicating the relevant information required by the third party to identify the specific make up of the consolidated payment amount.