Third party payments are processed when a party other than Harvard and the supplier is involved in the transaction. Setting up third party payment sites allows Harvard to report the income to the correct entity via 1099 or 1042S form.

Example: Harvard is paying for health insurance on behalf of a fellow. The fellow needs to be set up as a supplier and University Health Services needs to be set up as a third party.

1. If the supplier is not already in B2P, send them an invitation to complete a registration. If the supplier is already set up, skip to step 2.
2. Once the supplier is activated, submit a supplier maintenance request (request type: site add) to add the third party address to the supplier’s profile. When formatting the address in the request, the first address line must read “OR [third party name]”. It is crucial to include the word “OR” as it allows the third party to deposit the check.
3. Process a payment request and use the third party address as the remittance site. If the supplier is set up for electronic payments (e.g., Paymode or Zelle), process the payment as a special handling to ensure that a check is sent out to the third party.

Additional examples of third party payments or reimbursements are available on the FAS Office of Finance website.