Setup Special Circumstances
Assignments

Agencies must coordinate with their legal staff to approve their payees’ requests for assignment of state payments to a third party.

If approved by the agency’s legal staff, a mail code for the assignee must be established under the TIN of the assignor (payee).

An assignee’s mail code must not be the sole mail code for a payee’s TIN. If the payee has not been set up in TINS, the initial mail code setup must be for the payee. See Introduction to Payee Setup and Maintenance. Once the payee is established in TINS, a new mail code may be set up for the assignee.

Example: The state agency’s contract is with ABC Construction Company, but the payment is actually due to XYZ Asphalt as a result of the agency’s approved assignment between ABC (assignor/payee) and XYZ (assignee). Using the TIN for ABC Construction Company, a new mail code must be set up for XYZ Asphalt on the Payee Mail Code Set Up (PMCTUP) screen.

• Always check the hold status of the assignor and assignee as covered in Assignment Holds. This requires the agency to obtain the assignee’s SSN, ITIN or EIN to verify their hold status. If the assignee is on hold, an assignee mail code must not be set up.
• If neither party is on hold, enter the TIN number of the assignor in the PAYEE NUMBER field.
• In the NAME field, enter the name of the assignee.
• In LINE 1, enter: Assignee for (name of assignor)
• Enter the street address, city, state, and ZIP code of the assignee on the corresponding lines below the LINE 1 field.
• Change the SIC Code to 9934. This indicates the mail code has been established for a payee assignment.
• Review the mail code you’ve entered on the Payee Name and Address Information (PYADDR) screen to ensure it is complete and accurate.

Note: When processing payments for the assignee, be sure to use the mail code you have established for this purpose under the payee’s TIN.