In Scotland (for Scottish residents), an Attachment of Earnings Order (AEO) is a deduction made from an employee’s net earnings, and it is referred to as an arrestment. In England and Wales, an AEO is referred to as an attachment.
In the software, you can set up arrestments and other types of deduction orders. When you set up an arrestment or attachment, the deduction made from the employee’s net earnings can be a value, or based on a table.
For detailed information about attachments and the fields on the Attachments window, refer to Attachments.
For detailed information about how to set up a payroll code by using a table (and any lower limit default) for the deduction, refer to Tables.
When you set up your table for attachments or arrestments, it is essential that you define and maintain the data in the table and for the payroll code as instructed by the earnings deduction information stated by the statutory authorities.
Example: An arrestment that uses a payroll code table
To set up an arrestment for an employee paid monthly, by using a table based on the following information for the deduction –
Net EarningsDeductionNot exceeding £415NilExceeding £415 but not exceeding £1,500£15 or 19% of earnings exceeding £415, whichever is greaterExceeding £1500, but not exceeding £250023% of earnings exceding £1500Exceeding £250050% of earnings exceeding £2500
You set up the details for the attachment as follows:
Field NameValueReference1111111ADescriptionArrestmentReference Date31/01/2012ArrestmentPost April 2010Total1100TABLEThe description for the associated payroll code, which you select from the drop-down list. For detailed information about how to set up a payroll code by using a table (and any lower limit default) for the deduction, refer to Tables.AmountblankProtected EarningsblankPriority1
And you set up the table for the payroll code as follows:
Range StartValue Assigned415.01191500.01232500.0150
For this example, you must set a default lower limit to £15, by entering 15 in the Lower Limit field on the Defaults tab of the settings for the payroll code.