SubAgency Pay

Overview

Updated 06/24/2021

When an external employee works on an assignment, the employee can be paid with SubAgency (aka "contractor") pay during Avionté payroll processing. 

Note: With SubAgency Pay a singular payment is sent to the "Agency" and the Agency then furnishes the funds to each individual. There is no separate pay statement issued or retained in history for those individuals that the Agency is managing [there is no employee pay history only Agency payment details] . Additionally, no tax forms are issued at yearend for individuals that are managed under an "Agency".

Process

1. Create the Third Party Agency who will be receiving the Checks
1. Navigate to Main Menu > Agency 
   
   
2. Click New Agency. 
   
   
3. Add the details according to the New Agency article.
   
   
   
   
   • Ensure the Agency Type is "Staffing Supplier Vendor."
   • The Reference ID can be the TIN (Tax Identification Number) of the Agency.
     • A Reference ID is most often necessary for Contractors whose TIN is different from their SSN, but the Check still goes directly to the Contractor (multi-member LLCs, Partnerships, etc.)
       
       
4. Click Finish.
   
   
2. Associate the Third-Party Agency to the Assignment
   1. Navigate to Main Menu > Assignment
      
      
   2. Search for the associated assignment
      
      
   3. Open the Assignment record. The Detail page should display by default.
      
      
   4. Open the More Info tab on the right-hand side of the page.
      
      
   5. Ensure the W2 box is unchecked.
      
      
      
      
   6. Select the Agency as the name of the third party.
      • This tells the system that all future payroll for this placement will actually belong to the third party, no taxes will be tracked, and the check will be made payable to the third party.
        
        
3. (OPTIONAL) Associate the Third-Party Agency to the Employee.
   If the Employee will never work for you the customer, and will always be considered an Employee of the other agency, changes may be made directly to the Employee record. 
   1. Navigate to Main Menu > Employee.
      
      
   2. Search for the associated employee.
      
      
   3. Open the employee record. The Summary page should display by default. 
      
      
   4. From the Agency/Vendor drop-down menu, select an Agency as the name of the third party. 
      • This tells the system that all future Assignments for this Employee will belong to the third-party.
        
        
        
        
   5. Click Edit Employee. Ensure the W2 box is unchecked in the Hiring Data area.
      
      
      
      
   6. Close the Detail tab.
      
      
      
4. Cutting the Agency Payroll
   1. Process payroll.
      
      
   2. When creating the New Batch, click the drop-down of Run Type
      
      
      
      
   3. Change the Run Type to SubAgency Pay
      • This specifically identifies any Third Party Payroll, they will not show up under the same list as your normal Temps
        
        
   4. Complete payroll as normal 

If the Third Party Agency wants to be paid via Direct Deposit, this can optionally be set up on the Agency record.  There are also options under Agency > Service Info which may be used (Require Invoice Pay, Agency Direct Deposit, for example).

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