A payee is a person or entity who is to receive payment for a product or service rendered. For example, your telephone company is the payee for your phone service; your credit card company is the payee for your credit card expenditures. You could be a payee on an employer's payroll. A payee reference is an organizational method used by the payee, or recipient of funds, to request payment.
The old bill paying method of using just your first and last name has become obsolete. Assigned identification is referenced usually in a set of numbers, letters or both by the payee and imprinted onto the payer's billing invoice. Businesses usually employ this method to refer to specific services or products rendered.
A payee reference method provides faster accessibility to a specific invoice. You have probably questioned at one time or another the accuracy of a billing statement. A company representative may ask you for a reference number to review the invoice in question for discrepancies.
When paying a bill by check, mail order or money transfer, you will need to write the payee reference number onto your payment method. The payee reference will tell the payee entity where to apply the payment.
Your employer will assign a payee reference to your payroll account that you may notice on your paycheck statement. This method is used for company accounting, insurance and tax purposes. Each employer codes its own set of numbers and/or letters to each employee.
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