Third Party Electronic Funds Transfer (EFT) allows you to transfer deduction payments electronically to external organisations such as healthcare providers, credit unions, or pension schemes. You can extract deduction data from payroll, review and adjust values, then generate bank files for payment.
To generate Third Party EFT files, watch the video or follow the steps below.
Configure pay codes
Before you can generate Third Party EFT files, each deduction pay code must be configured with bank account details and the Third Party Returns rule.
Click the Settings tab, then click Pay Codes.
Search for the relevant deduction pay code and click its three-dot menu.
Click Edit, then click Next to go to the Rules step.
Click Add, then search for and select Account Number.
Enter the bank account number in the Value field, then click OK.
Click Add, then search for and select Sort Code.
Enter the sort code in the Value field, then click OK.
Click Add, then search for and select Third Party Returns.
Select a frequency from the Value drop-down menu, then click OK.
Click Next, then click Save.
📌 Note: The Third Party Returns rule determines when the pay code is included in extracts. Options include Yes, No, Weekly, Monthly, Quarterly, or Annually.
Configure payment percentages
You can apply a discount percentage to deductions and split payments across multiple bank accounts.
On the Payroll Dashboard, click the Manage Payroll tab.
Select a pay group, then click the Outputs tab.
Click Third Party EFT, then click the Pay Code Configuration tab.
Select the required Pay Code from the drop-down list.
Enter a discount percentage in the Third Party Discount field if required.
Click Add under Third Party Pay Code Allocation to split payments across multiple accounts.
Select the Sort Code and enter the Account No. and Percentage for each allocation.
Click Save.
📌 Note: When splitting payments, the total percentage across all allocations must equal 100%.
Extract Third Party EFT data
Extracting data pulls deduction values from payroll history into the Third Party EFT module for review.
On the Payroll Dashboard, click the Manage Payroll tab.
Select a pay group, then click the Outputs tab.
Click Third Party EFT, then click the Extract tab.
Select a Pay Group from the drop-down list, or turn on the All Paygroups toggle.
Select a Pay Code from the drop-down list.
Select a From Period and To Period, then select a Paypath Date.
Click Extract Data.
⚠️ Important: Extracting data more than once will delete and overwrite all previously extracted data.
Generate Third Party EFT files
Once data is extracted, you can generate the bank file for payment.
On the Payroll Dashboard, click the Manage Payroll tab.
Select a pay group, then click the Outputs tab.
Click Third Party EFT, then click the Generate/Reset tab.
Select Generate Third party EFT from the Report Name drop-down menu.
Select a Company or turn on the All Companies toggle.
Select the Processing Date, then select the Bank Name.
Select a File Summary Option, then click Generate.
Go to the Report Centre to view and download the file.
Reset Third Party EFT data
If you need to make changes and regenerate a file, you must reset the data first.
On the Payroll Dashboard, click the Manage Payroll tab.
Select a pay group, then click the Outputs tab.
Click Third Party EFT, then click the Generate/Reset tab.
Select Reset Third Party EFT from the Report Name drop-down menu.
Select a Company or turn on the All Companies toggle.
Turn on the Reset toggle for each item you want to reset, or click Select All.
Click Reset.
You can now re-extract data or make amendments before generating a new file.
Configure HMRC payments (UK only)
UK customers can use Third Party EFT to make statutory payments to HMRC, including PAYE and National Insurance contributions. This requires additional pay code configuration.
Enable the Inland Revenue Paypath indicator
The Inland Revenue Paypath indicator identifies which pay codes should be included on the PAYE BACS file. Enable this for allowances such as SAP, SPP, and SMP, and deductions such as PAYE and NI.
On the Payroll Dashboard, click the Settings tab, then click Pay Codes.
Search for the relevant pay code and click its three-dot menu.
Click Edit, then click Next to go to the Rules step.
Click Add, then select Inland Revenue Path Ind from the list.
Turn on the toggle, then click OK.
Click Next, then click Save.
📌 Note: Do not populate bank details for pay codes returned to HMRC. The bank account details and Inland Revenue accounts office reference are held on the Miscellaneous Parameters screen and will be referenced automatically when the EFT file is produced.
Configure recovery percentage
Some statutory payments such as SMP, SAP, and SPP have a 92% recovery value. You can configure this percentage on the pay code.
On the Payroll Dashboard, click the Settings tab, then click Pay Codes.
Search for the relevant pay code and click its three-dot menu.
Click Edit, then click Next to go to the Rules step.
Click Add, then select Recovery Percentage from the list.
Enter the percentage in the Value field, then click OK.
Click Next, then click Save.
📌Note: If no recovery percentage is entered, the default is 100%.
Extract Inland Revenue data
When extracting Third Party EFT data for HMRC payments, turn on the Inland Revenue toggle on the Extract tab. This filters the Pay Code drop-down menu to display only pay codes configured with the Inland Revenue Paypath indicator.
📌 Note: When the Inland Revenue toggle is enabled, the Pay Code Type field is cleared. Extracting Inland Revenue data does not require a Pay Code Type.
Configure SFTP integration
You can configure Third Party EFT files to generate automatically to a secure server location using Secure File Transfer Protocol (SFTP).
On the Payroll Dashboard, click the Settings tab, then click Bank File Settings.
Click Add, then select Third Party Bank File from the Bank File Type list.
Select the Third Party File Type from the drop-down list.
Select the File format Fields as required.
Enter the file extension in the Extension field.
Select Server Location from the Location Type drop-down menu.
Click Save.
Third Party files for the configured file type will now generate in the interface directory location.
📌 Note: Third Party EFT files are saved to the same directory as standard bank files. There is no separate directory for third-party files.
⚠️ Important: An IP address must be configured to use Server Location. Contact your Account Manager to set up this feature.