SAP Payroll Third-Party Remittance

The third-party remittance component involves the transfer of financial posting data from HR/Payroll to Finance accounts. The third-party remittance process allows you to complete the following three major tasks in the final processing of a payroll run:

• Posting financial data to the appropriate accounts in Finance.
• Generate bank transfers and check payments.
• Reconcile payments created in Human Resources through 3PR.

Third-party remittances may include the following type deductions and methodology for conducting payable function
1. Tax payment. Tax deductions are deposited into appropriate company clearing accounts. Tax remittance is conducted by the Payroll Office . I can be done via  decentralized ACH web system which is provided by our financial institution.
2. Benefit deductions: (i.e. retirement, health, dental, life insurance, accident insurance, long term care). Benefit deductions are deposited into appropriate company clearing accounts.
3. Garnishments: Child Support Garnishments. Electronic remittance of child support payment and information to the various State Disbursement Unit will require a special ACH file format (ACH + addenda information).
All other Garnishments – Non-child support garnishment will require remittance checks to be produced. A check file will be created for spooling.
4. Outside entities. Deductions for Vision, United Way, Employee Unions/Association, and Club Fee are deposited into appropriate company clearing accounts. Remittance processing is conducted by the Payroll Office via decentralized ACH web system or through the KFS voucher process.
5. Internal departments Deductions such as Rent, Meals, Development funds.

Third-party posting is an additional process performed after the payroll run. The various steps in the process include execution of the data evaluation run; update third-party remittance tables; create the posting document; and processing the posting run. These steps insure the posting to finance to update the general ledger, funds management, and cost centers.