To add a Court Order to an employee's record you need to go to the Employee Details page and select Pay Run Inclusions as pictured below.
On the Pay Run Inclusions page select the green "Add" button on the deductions row.
From the drop down menu select Post-Tax Deduction and then click the Apply Court Order button as pictured below.
A box will then pop up requesting you to apply the court order. Here you need to select the appropriate court order from the drop down menu and the system will pre-populate the most common settings for that type of court order.
The court order type options are:
- England/Wales Attachment of Earnings Order (AEO) - Priority
- Deduction from Earnings Order (DEO) - Pre March 2003
- Deduction from Earnings Order (DEO) - Post March 2003
- Council Tax Attachment of Earnings Order (CTAEO)
- England/Wales Attachment of Earnings Order (AEO) - Fines
- England/Wales Attachment of Earnings Order (AEO) - Non Priority
- Scotland Earnings Arrestment (EA)
- Department of Work and Pensions Direct Earnings Attachment (DEA) - Higher Rate
- Department of Work and Pensions Direct Earnings Attachment (DEA) - Lower Rate
Once you have made your selection you will need to enter the appropriate fields required for your court order. So for example an AEO has a fixed amount and a preserved earnings amount which needs to completed, then press save and you will be taken back to the deductions page.
Here you have the option to change the amount (per pay run) to:
- Fixed - this is a fixed amount taken every pay run.
- Percentage of Gross - this is a percentage of the gross earnings.
- Percentage of Net - this is a percentage of the net earnings.
- Varied based on earnings amount - when this option is selected you will need to then select the type of court order and weekly/monthly. The system will present to you the most common way of that court order being deducted depending on what you have selected. You could get either the pop up box or a varied earnings.
If the employee has multiple court orders, the system needs to know which one to apply first. The system defaults to 0 but it is up to the user to decide the priority.
If the employee has a student loan:
Depending on the type of court order they have will depend on how the student loan is deducted. If they had a CTAEO then this would stop student loans being deducted, others depend on if they are priority or non-priority or exactly what type of order they are.
The system will determine this and you have the option to amend this should you need to.
If there are no student loans then the system will just ignore it.
You need to select if the payment is to be paid manually or to a bank account.
If you pay it to a bank account: The employee usually has a bank account for their net pay, this would be set to 100% (unless they have another savings account set up and they have part of their net pay going to that). To pay the court order into a bank account you would need to add another bank account (see this article for further instructions), put this to % and just put 0 in. Save this, then you can apply against the court order in the payrun inclusions.
Preserved earnings are a fixed pound amount that is used to indicate the minimum amount an employee must be paid before a deduction can be made. You have several options as to how the preserved earnings are applied, you need to select from the drop down menu either: never; once a minimum net earnings limit has been reached or once a percentage of net earnings limit has been reached. See the screenshot below.
You can also set the system to either not pay the deduction, or pay the deduction up to the preservation limit, and set up how any carried forward amounts are treated for both preserved earnings and court orders if required.
If you want any notes to appear on the pay run for the inclusion they should be entered in the notes section.
You need to enter when the inclusion should start, options are:
- on the following date
When it will expire:
- on the following date
- after the following amount has been reached
This court order will now be set up and will be applied in the payrun that you have set the inclusion to start in.
If you wish to take a £1 admin fee you need to set up a deduction for this and follow the court order guidance as to when to apply it. Click here for more information on how to set up a deduction.'
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