ACH Credit Instructions for Third Party Payments (TPP)
Payroll providers and businesses have the option to send wage attachment payments electronically using ACH credit. Work with your financial institution to use the following ACH format for credit payments.
- The ACH Credit must include the tax payment (TPP) banking convention in the addendum record of a NACHA CCD+ transaction. The TPP conventions must be followed exactly for proper payment posting. Other addenda banking conventions should not be used.
- The NACHA record formats for CCD+ entries flow in the following order:
File Header Record ("1" Record)
- Company/Batch Header Record ("5" Record)
- Entry Detail Record ("6" Record)
- Addenda Record (1 addenda with 80 byte Payment Related Information Field, "7" Record)
- Entry Detail Record ("6" Record)
- Addenda Record (1 addenda with 80 byte Payment Related Information Field, "7" Record)
- Entry Detail Record ("6" Record)
- Addenda Record (1 addenda with 80 byte Payment Related Information Field, "7" Record)
- Company/Batch Control Record ("8" Record)
- File Control Record ("9" Record)
- To create an ACH Credit file, the Entry Detail Record ("6" Record) must be set up so the ACH Credit transaction file includes:
- A pre-notification transaction (a "zero-dollar" transaction) may be initiated at least 10 business days prior to the first transmission of an actual remittance transfer. These transactions are not acknowledged by US Bank unless a problem occurs.
The following sections contain information on how to use the TPP Conventions within the Payment Related Information Field (field 3) of the NACHA Addenda Record ("7" Record). For more specific information on NACHA formats, specifications and definitions, refer to the NACHA Operating Rules. Contact NACHA, (703) 561-1100, if you need further information.
Sample Addenda Records:
The format is shown in "TPP Conventions for the Addenda Record for ACH Credits" with the definitions, tax types, and filing requirement details in the following tables.
Wage Attachment
Payment
"7" Record
TPP*15030*123456789*20140430*25000*112233445*SMITH JOHN*123456\
The following represents an addenda record sent by a payroll provider for ABC Corporation (employer) with a FEIN of 12-3456789, submitting a wage attachment payment with a tax type code of (15030) on behalf of John Smith (employee) with a SSN of ###-##-3445, in the amount of $250.00, for the payroll date ending April 30, 2014, and with a payment key of 123456.
TABLE 1 -- TPP Conventions for the Addenda Record for ACH Credits
| Field # | Data Elements | Field
Requirements | Data
Element
Type | Min/Max
Use | Contents |
|---|
| | Segment Identifier | | | | TPP |
| | Separator | | | | * |
| TPP01 | Tax Payment Type Code | M | AN | 3/5 | XXXXX |
| | Separator | | | | * |
| TPP02 | Reference ID | M | AN | 1/10 | XXXXXXXXX |
| | Separator | | | | * |
| TPP03 | Date | M | DT | 8/8 | YYYYMMDD |
| | Separator | | | | * |
| TPP04 | Amount | M | N2 | 3/10 | $$$$$$$$¢¢ |
| | Separator | | | | * |
| TPP05 | Reference ID | M | AN | 1/9 | XXXXXXXXX |
| | Separator | | | | * |
| TPP06 | Name | M | AN | 1/13 | LAST FIRST |
| | Separator | | | | * |
| TPP07 | Reference ID | O | AN | 1/14 | XXXXXX |
| | Terminator | | | | \ |
TABLE 2 --Definitions of TPP Conventions - Data Elements
| Data Element | Definition |
|---|
|
Segment Identifier | Identifies the transfer as a third party payment. It must be coded as
TPP. |
|
Tax Payment Type Code (TPP01) | This field is always 5 characters in length. DOR follows the FTA standardized tax type codes for the first 3 characters. The final two characters are DOR assigned. For Wage Attachments, this code is 15030.
|
|
Reference ID (TPP02) | Identifies the third party that originated the payment. For Wage Attachment payments, this is the employer FEIN. |
|
Date (TPP03) | Date applicable to this payment. For Wage Attachment payments, use the payroll date. |
|
Amount (TPP04) | This is the total amount paid. This is a variable length field (right justify). This field must include cents and have a
minimum of 3 digits. |
|
Reference ID (TPP05) | Identifies the employee whose wages are being attached (full SSN). |
|
Name (TPP06) | The first 13 characters of the employee's name on whose behalf payment is being made. This is for visual reference. Use the first 13 characters of the last name, a space, and first name. |
|
Reference ID (TPP07) | Starting February 1, 2014, DOR publishes a "Payment Key" on Wage Attachment notices. This number along with TPP05 provides two separate reference numbers to positively identify the employee and allow DOR to direct the payment. |
TABLE 3 -- Definitions of TPP Conventions - Field Requirements
| Field Requirement | Definition |
|---|
|
M - Mandatory | This field must appear in the TPP convention. |
|
C - Conditional | The presence of this field is dependent on the value or presence of other fields in the convention. |
|
O - Optional | The appearance of this field is the option of the sending party. |
TABLE 4 -- Definitions of TPP Conventions - Data Element Types
| Data Element Type | Definition |
|---|
|
AN (Alpha-Numeric) | A sequence of letters, digits, spaces, and/or special characters. The contents must be left-justified. Trailing spaces should be suppressed. |
|
DT (Date) | Format for the Date Type is YYMMDD. YY is the last two digits of the year (00-99), MM is the numeric value of the month (01-12), and DD is the numeric value of the day (01-31). |
|
ID (Identifier) | An identifier must contain a value from a predefined list of values (T = Tax). |
|
N2 (Numeric) | N indicates numeric and 2 indicates the decimal places to the right of a fixed, implied decimal point. The decimal point is not transmitted. This number is always be positive for the TPP application. In the TPP convention, the amount fields are defined as N2 type data elements. Thus, $1200.00 appears as *120000*. The minimum number of digits for this data element is 3, so $0.01 would appear as *001*. |
Contact Us
Wisconsin Department of Revenue
Process and Data Services
PO Box 8901
Madison, WI 53708-8901
Phone: (608) 264-9956
Fax: (608) 261-6226
Email:
DORCentralCertifications@wisconsin.gov
October 20, 2022