Summary
Description
An Attachment of Earnings Order (AEO) is a formal document given to an employer by a court or similar body. It instructs the employer to take money from the employee.
Authorities issue Attachments for many reasons, including unpaid fines and child support.
Resolution
Types of AEO in Sage Payroll
If you receive an AEO and are unsure of what type the order is, contact the issuing court or creditor.
What earnings can be subject to AEO
Recording an AEO
To record an AEO, you’ll need to set it up as a new deduction. Set the category as Attachment of Earnings Order.
This appears alongside your other deductions when you process a pay run.
NOTE: Most AEOs deduct from Net pay. If unsure about whether to use Net or Gross deduction, contact the issuing court or creditor.
The AEOs not listed in Sage Payroll
If the specific AEO type isn't showing in then you need to create your own.
You add the new AEO deduction to the employee during the payment run.
NOTE: You need to keep a running total of the deductions taken. The AEO won’t stop deducting automatically.
You’ll need to work out the value of the deduction manually. If you’re unsure of the criteria to use for the deduction, contact the issuing court or creditor.
AEOs in different regions
If you receive an AEO and are unsure of what type the order is, 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 can'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 can take this charge even if it reduces the employee’s income below the 60% protected earnings amount.
The admin charge of £1.00 could bring the employees pay below the National Minimum Wage. Read the HMRC article National Minimum Wage and Living Wage. You can also contact the ACAS helpline for advice. It’s a criminal offence for employers not to pay the National Minimum Wage or National Living Wage.
Priority order
Each attachment has a priority assigned to it. If the employee has only one attachment, it’s assigned a priority order one by payroll. If the employee has more than one attachment, they need to deduct in the correct order according to HMRC. The table below shows the priority of the attachments and the deduction order.
Attachment orders relating to:
- Maintenance
- Fines
- Child support
- Community Charge and Council Tax
always take priority over non-priority attachments. Such as:
- Civil debts
- Student loans
- CMAs
The rules relating to the priority order of attachments are complex. They can differ depending on the issuing authority. Whether in England and Wales, Scotland or Northern Ireland.
This table 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 |
| Attachment of earnings order (fines or maintenance) | 1971 Priority | Amount | Yes | Yes | £1.00 | |
| Court Fines (Post April 2004) | Percentage | Yes | Yes | £1.00 | ||
| Child support | CSA | Amount | Yes | Yes | £1.00 | |
| Child Support DEO | Amount | Yes – fixed at 60% | Yes | £1.00 | NOTE: In when recording the PER for this deduction you need to enter the total pay the employee should have remaining. NOT the percentage amount. | |
| Deduction from earnings order | Deduction of Earnings Order | Amount | Yes | Yes | £1.00 | Takes priority over existing AEOs. |
| Attachment of earnings order (civil debt or maintenance) | 1971 Non-Priority AEO (Civil Debts) | Amount | Yes | No | £1.00 | |
| Community charge attachment of earnings order (pre 1992) | Pre 92 Community Charge | Amount or percentage | No | No | £1.00 | Contact the local authority for further advice. |
| Community charge attachment of earnings order (post 1992) | Post 92 Community Charge | Percentage | No | No | £1.00 | Contact the local authority for further advice. |
| Council tax attachment of earnings order | Council Tax | Percentage | No | No | £1.00 | An employee can only have 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 AEO (Civil Debts) | Amount | Yes | No | £1.00 |
If you receive an AEO and are unsure of what type the order is, contact the issuing court or creditor.
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 can be active at any time.
|
| 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 that Sage Payroll uses the correct legislation for the attachment.
If you receive an AEO and are unsure of what type the order is, 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 the local authority for further advice. |
| Community charge attachment of earnings order (post 1992) | Post 92 Community Charge | Percentage | No | No | £1.00 | Contact the 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 can be 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 |
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