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Payee Setup

Overview

Use the Payee Setup screen to define agencies where employers must pay garnishments or other deductions withheld from employee paychecks. ProPay automatically issues checks for all amounts due to payees.

Linking a Payee to an Employee

There are two ways to set up a payee agency for employee deductions:

Option A: Pick from Master List

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

If the payee is not in the list: Set up the new payee by entering their name, address, and other details. They automatically become part of your Master List for future use.

Option B: Enter new payee information

If no payee in the Master List matches your needs, you can enter a new payee directly:

  1. Enter the payee's name and address
  2. Complete the required fields (described below)
  3. The payee automatically saves to the Master List

Payee Setup Fields

Comment on Check

Enter any comment that should appear on the detailed report sent to the payee.

Examples:

  • "Case # 56598" for court-ordered garnishments
  • Employee's Social Security Number for tax levies

How it works: Instead of printing a separate check to the agency for each employee, ProPay prints a report that you send with the check. The report includes information about each employee so the agency can credit their respective accounts.

Administration Fee

Enter an extra administration fee to cover the cost of administering the deduction.

If the collection agency pays the fee:

  • Enter the admin fee amount
  • ProPay deducts it from the payment amount due to the agency

If the employee pays the fee:

  • 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, if applicable.

Garnishment Type

IRS Garnishment:

  • Enter I if this is an IRS garnishment

Tips included in garnishment:

  • Enter T if tips are subject to garnishment
  • Note: Cash tips are generally not subject to garnishment in most states, but not all
  • Some credit card tips may be subject to garnishment
  • See the garnishment instructions for specific guidance

Pay Frequency

Determines how often the deductions must be paid to the agency.

Options:

  • (P) Per paydate - Paid each time payroll runs
  • (M) Monthly - Paid on the last pay date of each month

Finishing the Setup

  1. Click Exit to return to the previous screen
  2. Verify the payee name you selected appears
  3. Click OK to accept the setup for that payee

Electronic Garnishment Payments

Certain garnishments, voluntary deductions, and other third-party payments may be paid electronically.

Fields required for electronic payments

Complete these fields only when paying garnishments electronically:

Application Identifier

Supported code: CS - Child Support

Case Identifier

The IV-D case number or court order number. This always refers to the identification number of the case in the state receiving the EFT/EDI transaction (the child support SDU).

Important: The SDU must provide the employer with the correct Case Identifier, typically during the case cleanup/reconciliation process before sending the first electronic payment.

SSN - Non-Custodial Parent Social Security Number

Provides the SDU with the non-custodial parent's Social Security number.

Medical Support Indicator

Supported code values: Y, N, or W

  • Y - Employer offers family medical insurance coverage
  • N - No coverage available
  • W - Medical insurance not applicable to the deduction (only used by a state when sending an interstate payment)

FIPS Code

The Federal Information Process Standard (FIPS) code of the SDU receiving the transaction.

  • 5 characters - State and county codes
  • 7 characters - State, county, and local codes

Note: Most states no longer require the FIPS code for incoming payments.

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