Attachment of earnings orders

 TIP: If you receive an AEO and you’re unsure what to set this up as, for further information contact the issuing court or creditor. 

To delete a deduction in the pay run:

1. In the deductions section of the pay run, select view details. Make a note of the following information:

• Date Of Order

• Reference

• If Apply Administration charge is selected

You will need these details when you re-add the attachment.

2. To remove any Earnings arrests, select the Discard button next to the deduction.

To add a new deduction in the pay run:

1. In the deductions section of the pay run select Add Deduction. Select Add a new deduction.

2. In the Deduction Category drop-down, select Attachment of Earnings Orders.

3. In the Deduction Type drop-down, select Scottish Earnings Arrest.

4. Add a name and description. Select Save.

5. Enter the Date of Order, Reference and Apply Administration Charge you noted earlier.

6. Select OK.

 NOTE: If an employee has more than one Scottish Earnings arrest, Payroll pays the oldest first. It next pays the newest based on the Date of Order you enter.

Protected earnings

To ensure that an employee has enough income, the court may set a protected earnings amount. This is on the order if applicable. Protected earnings mean the employee’s net pay won't fall below the amount entered. Any amount not deducted due to the protected earnings carries into the next period. This depends on the type of attachment that's in use.

Administration fee

For each pay period with an EAO deduction, you may take up to £1.00 from your employee’s earnings in admin costs. 
You take this charge from the employee’s net pay. It can reduce the employee’s earnings below the protected earnings figure.

The table below shows the settings for the different types of AEOs you may receive:

Order type	To set up in the software	Amount or percentage	Protected earnings	Carried forward	Admin fee	Other information
Child support	CSA	Amount	Yes	Yes	£1.00
	Child Support (2012)	Amount	Yes – fixed at 60%	Yes	£1.00	NOTE: You must only use this AEO after April 2012 and after you have received notification from the CSA. You must only use this AEO after April 2012 and after you have received notification from the CSA.
Deduction from earnings order	Deduction of Earnings Order	Amount	Yes	Yes	£1.00
Earnings arrest	Scottish Earnings Arrest	Amount or percentage	No	No	£1.00	Can operate with a current maintenance arrestment. Only one earnings arrest active at any time.  NOTE: You can only add this AEO for the 22/23 tax year onwards. It consolidates the previous Earnings Arrest AEO for post 6 April 2010. Sage Payroll warns you if you try and process a pay run with multiple earnings arrest types
Current maintenance arrestment	Current Maintenance Arrest	Amount	No	No	£1.00	Can operate with a current maintenance arrestment. Can only have one earnings arrest active at any time. If you receive more than one, return it. The employee will get a conjoined arrestment order
Income Support Deduction Notice	Income Support Deduction Notice	Amount	Yes	No	£1.00
Earnings arrest for bankruptcy and diligence	Earnings Arrest (2006)	Amount or percentage	Yes	Yes	£1.00
Centralised attachments of earnings payment (CAPS)	1971 Non-Priority	Amount	Yes	No	£1.00

 NOTE: When you add Scottish Earnings Arrest during a pay run, you need to enter the date of the order. This ensures Sage Payroll uses the correct legislation for the attachment. 

 TIP: If you receive an AEO you may be unsure what to set this up as. For further information contact the issuing court or creditor. 

Protected earnings

To ensure that an employee has enough income, the court may set a protected earnings amount. This is on the order if applicable. Protected earnings mean the employee’s net pay won't fall below the amount entered. Any amount not deducted due to the protected earnings carries into the next period. This depends on the type of attachment that is in use.

Administration fee

For each pay period with an EAO deduction, you may take up to £1.00 from your employee’s earnings in admin costs. You take this charge from the employee’s net pay. It can reduce the employee’s earnings below the protected earnings figure.

The table below shows the settings for the different AEOs you may receive:

Order type	To set up in the software	Amount or percentage	Protected earnings	Carried forward	Admin fee	Other information
Attachment of earnings order (fines or maintenance)	1971 Priority	Amount	Yes	Yes	£1.00
Fines Enforcement (if instructed to deduct using tables)	Amount	Yes	Yes	£1.00
Child support	CSA	Amount	Yes	Yes	£1.00
	Child Support (2012)	Amount	Yes – fixed at 60%	Yes	£1.00	NOTE: You must only use this AEO after April 2012 and after you have received notification from the CSA.
Deduction from earnings order	Deduction of Earnings Order	Amount	Yes	Yes	£1.00
Attachment of earnings order (civil debt or maintenance)	1971 Non-Priority	Amount	Yes	No	£1.00	Only one 1971 non-priority can be active at any one time.
Community charge attachment of earnings order (pre 1992)	Pre 92 Community Charge	Amount or percentage	No	No	£1.00	Contact local authority for further advice.
Community charge attachment of earnings order (post 1992)	Post 92 Community Charge	Percentage	No	No	£1.00	Contact local authority for further advice.
Council tax attachment of earnings order	Council Tax	Percentage	No	No	£1.00	Only two CTAEOs from the same billing authority active at any one time. Return any further CTAEOs.
Earnings arrest	Earnings Arrest	Amount or percentage	No	No	£1.00	Can operate with a current maintenance arrestment. Can only have one earnings arrest active at any time. If you receive more than one, return it. The employee will get a conjoined arrestment order.
Current maintenance arrestment	Current Maintenance Arrest	Amount	No	No	£1.00	Can operate with a current maintenance arrestment. Can only have one earnings arrest active at any time. If you receive more than one, return it. The employee will get a conjoined arrestment order.
Conjoined arrestment order	Conjoined Arrestment Order	Amount	No	No	£1.00	Issued for more than one earnings arrestment or current maintenance arrestment.
Income Support Deduction Notice	Income Support Deduction Notice	Amount	Yes	No	£1.00
Earnings arrest for bankruptcy and diligence	Earnings Arrest (2006)	Amount or percentage	Yes	Yes	£1.00
Centralised attachments of earnings payment (CAPS)	1971 Non-Priority	Amount	Yes	No	£1.00