1.About Payout Agreements and Methods
Tax bills not paid on or before the effective due date are considered delinquent. The amount of unpaid tax incurs interest and penalty. Interest typically starts with a certain percentage for the first delinquent month and accrues at a constant rate for each additional month (or portion thereof) the tax remains unpaid. Penalty charges can either follow this pattern or a flat penalty percent can be assessed.
A county treasurer office may allow a taxpayer to pay delinquent tax, penalties, and interest in periodic installments through a Payout Agreement.
PACS 9.0 offers three Payout Agreement structuring methods options:
Methods
 As of Effective Due Date
 Bond Interest Annual
 Bond Interest Annual Amortized
As of Effective Due Date Method
This method resembles the Addon Interest method some lending and finance institutions use to calculate interest charges associated with a loan. The addon interest method calculates the total interest charge by multiplying the entire loan amount by the interest rate, and then multiplying the total interest by the period covered by the loan. This interest charge is then added to the principal to determine the total, which is then divided by the number of payment periods to calculate the payment.
Example 1:
A $3,000 balance is to be paid in two annual installments. The annual contractual interest rate is 6%. To reach the installment amount, calculate as follows:
$3,000 * .06 * 2 = $360
The annual payments equal ($3,000 + $360) / 2 = $1,680
The method for calculating payments for a payout agreement as of the effective due date needs to include these interests and penalties.
Example 2:
The following example will use these terms:
Terms: Start Date of agreement = 04/15/2007 Base Amount Due = $1,000 Effective Due Date = 04/30/2007 Interest =1% for the first calendar month of delinquency and thereafter accrues by 1% each additional month Number of Payments = 10 Payment Frequency = Monthly 
The system creates a plan that produces even payments:
Set the due date for each individual payment.
There is no interest on the first payment. The payment for the Base Amount Due of $1,000 over a period of 10 months requires 10 monthly payments of $100. $100 is the Base Amount Due each period.
Now add the applicable interest on each payment based on the effective due date of 04/30. The first payment, due 05/15, is one month delinquent as of the effective due date. The second payment is two months delinquent and so on. The first payment incurs 1% interest, the second payment 2%, and the third payment 3%, and so on. The interest amount due is calculated using Base Amount Due * Interest which equals the Interest Due. The total Interest Due is $55.
The total Payment Due is the sum of the Base Amount Due and total Interest Due: $1,000 + $55 = $1,055
$1,055 evenly split into 10 monthly payments yields the payment amount due for each payment period: $1,055/10 = $105.50. $105.50 is the Actual Payment Due each period.
Finally, calculate the Actual Paid on Base Amount Due by dividing the Actual Payment Due by the total Payment Due, and multiply that value by 100: $105.50 / 101 = $104.455
Repeat these steps for each payment. Summing the Actual Paid on Base Amount Due should yield a total close to the Base Amount Due.
Payment #  Payment Due Date  Base Amount Due  Interest  Interest Due  Payment. Due  Actual Payment Due  Actual Paid on Base Amount Due 
1  05/15/2007  $100.00  1%  $1.00  $101.00  $105.50  $104.455 
2  06/15/2001  $100.00  2%  $2.00  $102.00  $105.50  $103.431 
3  07/15/2007  $100.00  3%  $3.00  $103.00  $105.50  $102.427 
4  08/15/2007  $100.00  4%  $4.00  $104.00  $105.50  $101.442 
5  09/15/2007  $100.00  5%  $5.00  $105.00  $105.50  $100.476 
6  10/15/2007  $100.00  6%  $6.00  $106.00  $105.50  $99.528 
7  11/15/2007  $100.00  7%  $7.00  $107.00  $105.50  $98.598 
8  12/15/2007  $100.00  8%  $8.00  $108.00  $105.50  $97.685 
9  01/15/2008  $100.00  9%  $9.00  $109.00  $105.50  $96.789 
10  02/15/2008  $100.00  10%  $10.00  $110.00  $105.50  $95.909 




 $1055.00 
 $1000.742 
In the example above, the Number of Payments was already set in the terms. If the periodic Actual Payment Due amount is set in the terms, then the calculation is more straight forward, and starts at step six in the previous scenario.
Actual Payment Due = 105.5
Calculate the first payment under Actual Base Amount Due by dividing the Actual Payment Due by the total of 1 plus Interest: $105.50 / ( 1 + .01) = $104.455
Next, calculate the Actual Paid on Base Amount Due remaining after the first payment: $1000 – $104.455 = $895.544
Continue until the remaining Base Amount Due is zero.
Example 3
The taxpayer misses the first three payments of the schedule above and must begin with the 4th payment on 8/15/2007. Calculate the payment due as follows:
Payment #  Status  Delinquent Months  Original Payment Due  Interest  Interest Due  Current Payment Due 
1  Delq  3  $105.50  3%  $3.17  $108.67 
2  Delq  2  $105.50  2%  $2.11  $107.61 
3  Delq  1  $105.50  1%  $1.06  $106.56 
4  Current  0  $105.50 

 $105.50 





 $428.33 
Each unpaid installment accrues 1% interest per month for the number of months delinquent. The first installment is three months delinquent, so it has accrued interest of 3%.
Multiply the Original Payment Due by the Interest to calculate the Interest Due on the delinquent payment: $105.50*.03 = $3.165
Sum the Interest Due and the Original Payment Due to reach the Current Payment Due: $105.50 + $3.17 = $108.67
Repeat the previous two steps for each delinquent payment, then sum all delinquent payments and the current payment to calculate the amount expected from the taxpayer on the current due date (08/15/2007).
In the above example, when the taxpayer starts paying on 8/15/2007, the base amount due is still $1,000 and the tax is four months delinquent when calculated as of effective due date of 04/30/2007. So, the total pay off amount due = $1,000 (1 + 0.04) = $1,040
Bond Interest Annual Method and Bond Interest Annual Amortized
Bond Interest methods resemble the Remaining Balance method often used for auto loans and mortgages. When using bond interest, we ignore the original effective due date on the tax bill (if the tax bill is in the payout agreement). Interest due on the bill is charged at the bond rate. Penalty and interest on delinquent installments are calculated as of the installment payment due date. This penalty and interest is levied upon both the interest due on the installments and the principal (the unpaid tax).
Using the remaining balance method, the bond interest charge is calculated each period by multiplying the bond interest rate by the remaining unpaid balance. Interest is not charged on what has been paid. Payment amounts decline each period because the balance on which interest calculates shrinks.
Bond Interest Annual Method:
Example 1:
Terms: Start Date of Agreement = 10/01/2003 Base Amount Due = $40,000 Principal Amount Due every period = $10,000 Bond Interest Rate = 10% Annual Number of Payments = 4 Payment Frequency = Annually 
Payment #  Payment Due Date  Base Amount Due  Principal Amount Due  Bond Interest Due  Total Payment Due 
1  10/01/2004  $40,000.00  $10,000.00  $4,000  $14,000 
2  10/01/2005  $30,000.00  $10,000.00  $3,000  $13,000 
3  10/01/2006  $20,000.00  $10,000.00  $2,000  $12,000 
4  10/01/2007  $10,000.00  $10,000.00  $1,000  $11,000 



 $10,000  $50,000 
Divide the Base Amount Due by the Number of Payments to reach the Principal Amount Due: $40,000 / 4 = $10,000
Multiply the Base Amount Due by the Bond Interest Rate to calculate the Bond Interest Due: $40,000 * 10% = $4,000
Sum the Principal Amount Due and Bond Interest Due to reach the Total Payment Due: $10,000 + $4,000 = $14,000
Repeat the previous three steps for each period, and note how payment amounts decline as shown in the Total Payment Due column above.
Example 2:
The taxpayer misses the first two payments and begins on the 3rd payment due date, 10/01/2006.
Terms Delinquent Interest Rate as of payment due date = 1% accrues monthly 
Payment #  Payment Due Date  Base Amount Due  Principal Amount Due  Bond Interest Due  Delinquent Interest  Interest Due  Total Payment Due 
1  10/01/2004  $40,000  $10,000  $4,000  24%  $3,360  $17,360 
2  10/01/2005  $40,000  $10,000  $4,000  12%  $1,680  $15,680 
3  10/01/2006  $40,000  $10,000  $4,000 

 $14,000 






 $47,040 
Calculation the total amount due including any delinquent interest and penalty on 10/01/2006 as follows:
Multiply the Base Amount Due by the Bond Interest Rate to reach the Bond Interest Due: $40,000 * 10% = $4,000
The first payment accrued delinquent interest for 24 months. At the Delinquent Interest Rate of accrual at 1% per month, this equals 24%. Multiply this Delinquent Interest by the sum of the Bond Interest Due and the Principal Amount Due to calculate the Interest Due: ($10,000 + $4,000) * .24 = $3,360
Sum the Principal Amount Due and the Bond Interest Due, and multiply that by the sum of 1 plus Delinquent Interest to reach the Total Payment Due: ($4,000 + $10,000)(1 + .24) = $17,360. This is now the total due for the first missed payment.
Repeat this for the remaining delinquent payment and the current payment to reach the Total Payment Due on 10/01/2006. This gives us $47,040.
We calculate the total pay off amount on this payout agreement as follows:
In our example, the taxpayer missed the first two payments and began on the 3rd payment. So, subtract the total paid on the principal amount as of the third payment from the original Base Amount Due to reach the remaining balance: $40,000 – $30,000 = $10,000
Then add the remaining balance to the Total Payment Due by the taxpayer on 10/01/2006 to calculate the total payoff amount: $10,000 + $47,040 = $57,040.
Bond Interest Annual Amortized Method:
This method is similar to how mortgages are structured. The payment amount for each period is the same but the proportion applied to the base amount due varies, with the remainder going to interest. Initially, a large portion of each payment goes toward the interest, but gradually larger portions go towards the base amount. The schedule is often called an amortization schedule.
Example 1:
Terms: Start Date of agreement = 10/01/2003 Base Amount Due = $40,000 Bond Interest = 10% Annual Amortized # of Payments = 4 Payment Frequency = Annually 
Payment #  Payment Due Date  Base Amount Due  Principal Amount Due  Bond Interest Due  Total Payment Due 
1  10/01/2004  $40,000.00  $8,618.83  $4,000.00  $12,618.83 
2  10/01/2005  $31,381.17  $9,480.72  $3,138.12  $12,618.83 
3  10/01/2006  $21,900.42  $10,428.79  $2,190.05  $12,618.83 
4  10/01/2007  $11,471.67  $10,324.50  $1,147.17  $12,618.83 



 $10,475.33 

Calculate the periodic payment as follows:
Total Payment Due per period = Bond Interest * Base Amount Due * (1+ Bond Interest) ^{[# Payments] } /
(1+ Bond Interest) ^{[# Payments]} – 1
Therefore,
Total Payment Due = (0.01 * 40000 * (1 + 0.01)^{4}) / (1 + 0.01)^{4} – 1 = 12,618.83
The calculation of the payment schedule (also known as ) is as follows:
 Multiply the Base Amount Due by the Bond Interest to calculate the Bond Interest Due: $40,000 * .1 = $4,000
 Subtract the Bond Interest Due from the Total Payment Due to reach the Principal Amount Due: $12,618.83 – $4,000.00 = $8,618.83
 And so on. The schedule shows that initially a large portion of each payment goes to interest, with gradually larger portions going towards reducing the base amount due.
2.Creating Payout Agreements
Purpose
Use this procedure to create, define, and configure payout agreements on properties for the payment of tax, penalties, and interest in periodic installments.
Prerequisites
 In order to perform this procedure, the following user right is required:
 Payout Agreement > Create/Edit Payout Agreement
Procedure
 In PACS 9.0, choose Activities > Payout Agreements > New Payout Agreement.
 In the Payout Agreement Wizard, enter criteria to specify properties to be included in the payout agreement.
 Select the property or properties to be included and click Next.
 Complete the following fields in the Initial Setup page of the Wizard:
 Grouping
 Agreement Type
 Ref ID
Note If
Multiple Payout Agreements
grouping is selected, the system creates a payout agreement for each property in the list.
 If you selected
Single Payout Agreement
and have multiple properties listed in the grid select Primary to designate the primary property account on the agreement. When you have completed the initial setup options, click Next.  On the Statements page of the Wizard, select the statements to include in the payout agreement. A statement can be expanded if you wish to view tax details on the statement. After you have selected statements, click Next.
Note Only statements as a whole can be added to the agreement. When a statement is added to the agreement, all the bills that are part of the statement are automatically included on the agreement.
 On the Penalty and Interest page of the Wizard, choose one of the following:
 If you need to set up interest that will override interest currently on the bills and specify that the payment schedule will be calculated using bond interest, in the Bond Interest section, select Use Bond Interest. Then do the following:
 Select either Annual or Annual Amortized.
 Enter the bond interest percentage.
 Complete the Begin Date and End Date fields.
 If you need to specify that the payment schedule is calculated as of the effective due date, select Use Effective Due Date.
Note For more information about all of these structuring methods, please see About Payment Agreements and Methods.
 If you need to set up interest that will override interest currently on the bills and specify that the payment schedule will be calculated using bond interest, in the Bond Interest section, select Use Bond Interest. Then do the following:
 If you need to override any interest and penalties on the bills with new interest and penalty on the grid, select Override Penalty and Interest on Bills. Then, in the Delinquent Penalty & Interest section, click Add to add new penalty and interest values to the payout agreement.
 Click Next.
 In the Payment Terms page of the Wizard, complete the Start Date and Payment Terms fields.
 Choose one of the payment options:
 Number of Payments
 Payment Amount
 Click Calculate Payment Schedule(s) to display the number of payments and total payment amount. You can change payment options and choose Calculate Payment Schedule(s) as often as necessary before clicking Finish.
 To view the details of a individual payments within the schedule, expand the payout ID row.
 Click Finish to complete the payout agreement creation.
3.Printing Payout Agreement Letters
Prerequisites
 In order to perform this procedure, the following user right must be assigned to your ID:
 Letter Processing
 A connection to the default printer is set up.
Procedure
 Choose one of the following:
 To print a single payout agreement letter from an individual payout agreement record, open the payout agreement record. Then choose Commands > Print Payout Agreement Letter.
 To print payout agreement letters for multiple payout agreements, in Microsoft Word, select the PACS 9.0 Menu ribbon. Then click Letter Processing and choose Print Payout Agreement Letters.
 To print payout agreement letters for multiple payout agreements, in PACS 9.0, choose Activities > Letter Processing > Print Payout Agreement Letters.
 In the Letters section of the Print Payout Agreement Letters dialog box, set the following field:
 Letter
 Template
 In the Letters/Template dropdown list, select the letter or template to be printed.
 In the Print Methods section, select one of the following print methods:
 Query
 Payout Agreement IDs
 If there are flex fields, in the Flex Field Value cell of each flex field, enter the data to be printed for the fields on the letter.
 To start printing the letters from the default printer, click Print.
4.Printing the Payout Agreement Schedule
Purpose
Use this procedure to generate a report that itemizes each payment in a payout agreement schedule as well as payments that have been made.
Procedure
 Open the payout agreement. Then choose Commands > Print Schedule.
Result
The report is sent to your PACS inbox.
5.Generating Special Assessment Payout Statements
Purpose
Use this procedure to generate special assessment payout agreement statements, which detail the schedule and history for a specific payout agreement.
Procedure
 In PACS 9.0, choose Activities > Payout Agreements > Generate Special Assessment Payout Statement.
 In the Statements for Special Assessment Payout Agreements dialog box, click Add .
 In the Special Assessment Payout Statement dialog box, select the Agreement Type and Special Assessment Agency.
 Complete the following options as required:
 Delinquent Payout Agreements
 Print for Payouts that have missed payments
 Exclude Payouts with Zero due
 Effective Date
 If the statements should be printed as part of a template, which is a collection of letters and/or forms that can be printed as a group , in the Advanced Print Options section, select Print Template and choose the template.
 To set the output settings, complete the following fields in the Output Settings section:
 In the Format dropdown list, select the report output format.
 In the Filename field, enter the report file name.
 In the Description field, enter a report description.
Note We recommend that you enter a specified description to help you identify this report later. You can display reports from the inbox after they are generated. The file name will be listed as the Subject, so a detailed description will help to better identify the report.
 Click Preview to preview the report. Click Post to generate the report.
6.Printing the Payoff Statement Report
Purpose
Use this procedure to generate a report that reflects payments posted for the payout agreement as of a date that you specify.
Procedure
 Open the payout agreement. Then choose Commands > Print Payoff.
Result
The report is sent to your PACS inbox.
7.Posting Payout Agreement Payments
Purpose
Use this procedure to post payments submitted for a payout agreement.
Note If the bills will be delinquent on the scheduled payment date, then penalty and interest calculate on each scheduled payment even if the payment is made on time.
Procedure
 In PACS 9.0, open the payout agreement.
 In the Payment Schedule section, select the items to be paid. Then click Pay.
 In the Payment Cart dialog box, if required, change the posting date. then click Post.
 In the Post Payment dialog box, do the following:
 In the Payment Information section of the Post Payment dialog box, complete the following options as required.
 Change Batch
 Drawer
 Paid Under Protest
 Paid By
 Change
 Amount Due
 Payment Code
 In the Amount Paid section, enter information about the tenders, one per row, used to make the payment.
 To add a tender, click Add.
 To delete a tender, select it and click Delete.
 To edit a tender, doubleclick it and complete the following fields as required:
 Tender Type
 Amount Tendered
 Ref. Number
 Desc. (Date, Name, etc.)
 DL Number
 DL State
 In the Amount Paid section, complete the following fields as required:
 Credit Card
 Type
 Last 4#
 Auth. Code
 CCCC
 Swipe
 Total Paid
 Balance Due
 Change Due
 In the Options section, select the following options as required:
 Print Receipt
 Copies
 Validate Checks
 Print Statement
 Click Post to post the payment.
 If you selected the
Overpayment Credit
payment code, in the Payment Distribution dialog box, specify the property or properties that should receive the credit and then click OK:Note If you need to select a property that is not listed, click Add to add the property to the list.
 If a slip printer is configured for your workstation, after any receipts have been printed, in the Validation dialog box, use the following options as required:
 Validate & Advance – Sends the validation line to the slip printer and advances the selection to the next row.
 Validate – Sends the validation line to the slip printer.
 Skip – Advances the selection to the next row.
8.Defaulting a Single Payout Agreement
Purpose
Use this procedure to place a payout agreement in default status when the taxpayer has missed scheduled payments.
Procedure
 Open a payout agreement.
 In the Payment Schedule section, click Default.
 Enter comments relevant for the default. Then click OK.
9.Defaulting Multiple Payout Agreements
Purpose
Use this procedure to place multiple payout agreements in default status at the same time for taxpayers that have missed scheduled payments.
Procedure
 Choose Search > Payout Agreement. Then enter criteria with which to retrieve payout agreements and click Search.
Note You can specify delinquent agreement search criteria and/or criteria for agreements that have missed a certain number of payments.
 In the Payout Agreement Search Results window, select the payout agreements to default.
Tip To select multiple agreements that are not adjacent to each other in the list, press
CTRL
and click the row for each agreement.  Rightclick and choose Mass Default.
 In the Mandatory dialog box, enter the comments relevant for the default. Then click OK.
Result
The status of the agreements is changed to Defaulted.
10.Payout Agreement Reports
Payout agreement reports are currently being developed.