Use this tab to define a table the system uses to obtain a particular value or percentage.
This tab is available for the selected payroll code only when you set the following:
When you create the table, you must enter the income bands in ascending order, starting with the lowest band. You type the income range in the Range Start field, type the associated value in the Value Assigned field, and then click New to add the details to the table at the bottom of the window. The value you enter in the Value Assigned field can be an absolute value or a percentage. Click Save to save the table details.
To edit a row in the table, select the row, click Edit, and then change the details.
To delete a row in the table, select the row, click Delete, and then click Yes to indicate you want to delete the details.
There are two examples below that describe how to use a table. The entries displayed in the table are displayed in ascending order of the range start to reflect the sequence in which the table is accessed.
Type the start of the income band or range.
Type the value associated with the range.
Range Start, Value Assigned
View-only. This table displays the ranges and values you set up.
Table Example 1: Attachment Of Earnings
When you define an attachment (or arrestment) for an employee, you can use a table to retrieve a percentage or percentages to apply to the employee’s net earnings, to calculate the value of the deduction for the attachment. The net earnings for the pay period are used to establish a deduction for the same pay period. Range Start shows the ceiling for the net earnings, and Value Assigned shows the percentage the system applies if the employee’s net earnings fall within that range.
You might set up a table for an attachment for someone on a monthly payroll as follows:
Range StartValue Assigned £300.01 3%
The table shows a percentage up to a certain value of net earnings. The last range and associated percentage is used for the remainder of any earnings that exceed the last but one range.
For attachments, when someone’s earnings fall into the last range, the system takes a percentage of the earnings up to the last but one range, the percentage for the last range is applied to any earnings that exceed the last but one range, and the system totals the two amounts to calculate the deduction. For example, if an employee’s net monthly earnings are £1500, the system calculates a deduction of £255 (17% of £1500). However, if an employee’s net earnings in the monthly pay period are £2200, the system calculates £433.40 (17% of 2020, plus 50% of the remaining £180) as the deduction value for the employee’s attachment.
For post-April 2010 arrestments, the system calculates the deduction in a different way. When an employee’s net earnings fall within a range, the system calculates an amount for the percentage for the net earnings in each range up to and including the range in which the net earnings fall, and totals them, to calculate the pay period deduction value for the arrestment. Using the table data and example figures for the attachment, if an employee has an arrestment and the net earnings are £1500, the system calculates a deduction value of £104.20 (3% of £250, plus 5% of £190, plus 7% of £160, plus 12% of £520, plus 17% of £80). If the employee earns £2200, the system calculates a deduction value of £282.60 (3% of £250, plus 5% of £190, plus 7% of £160, plus 12% of £520, plus 17% of £600, plus 50% of the remaining £180).
For post-April 2010 arrestments for monthly earnings, your table might look like this:
Range StartValue Assigned415.0119.001500.0123.002500.0150.00
According to the regulations passed by the Scottish parliament for post-April 2010 arrestments, the basis of the deduction for an employee’s net monthly earnings between £415.01 – £1500 is £15 or 19% of earnings that exceed £415, whichever is the greater. The table specifies the percentage, but to satisfy the possibility that £15 might have to be deducted, you must ensure the system calculates the correct result by setting the lower limit on the Defaults tab to 15.00. For example, if an employee’s net earnings for the pay period are £415.01, the system deducts £15 for the attachment deduction, by using the lower limit set for the payroll code. If you do not set a lower limit, no deduction is made.
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 provided by the statutory authorities.
NOTE: The tables used for calculating arrestments changed in April 2010, so arrestments before April 2010 use different tables (based on values, not percentages), so the system calculates different results for pre-April 2010 arrestments.
Table Example 2: Trade Union Fees
You can use a table to deduct a fee payment in each pay period for trade union membership.
In the Range Start fields, you enter annual salary bands, and the Assigned Value fields show the union fee value that is deducted when an employee’s annual salary falls within the range.
For information about the details you enter on the Back Pay tab, click here.