Current Maintenance Arrestment CMA

Current Maintenance Arrestment CMA

WHAT IS A CMA

A current maintenance arrestment, as the name suggests, may be used to enforce an ongoing maintenance obligation. Like an earnings arrestment, the current maintenance arrestment is served on the debtor’s employer and results in deductions from earnings. Maintenance is a periodical sum payable under a maintenance order. A maintenance order may be any one of a list of orders specified by an Act, such as an order for payment of a periodical allowance on divorce or on the granting of a decelerator of nullity of marriage.  A current maintenance arrestment cannot be used until the debtor is in arrears of a sum equivalent to one installment of maintenance.

The sum to be deducted under a current maintenance arrestment is calculated differently from those deducted under an earnings arrestment. It is based upon a daily rate of maintenance which is multiplied by the number of days in the appropriate pay period, i.e. 7 days where the employee is paid weekly. However, there is a limit to the amounts which may be deducted, equal to £10 per day.  This is on the basis that the debtor must be left with a fixed subsistence level of earnings. As a result, the total daily rate may not be recovered by the creditor. As is the case with earnings arrestments, the employer may deduct a fee of £0.50 from the debtor’s earnings every time a deduction is made under a current maintenance arrestment.

A current maintenance arrestment continues in force until the obligation to pay maintenance ceases or is superseded by another order, the creditor recalls or abandons the arrestment, or the debtor changes employer.

To set up an CMA go to Payroll > Double click Employee

1)   Select employee to apply the CMA to
       Go to Payslips>, then double click on the employees name for whom you have received the order for.

2)   Deductions
       Under deductions click the Add button

3)   Attachment of Earnings Order
       From the dropdown, select Attachment Orders

4)   Add Attachment Order
       Click Add attachment Order, and from the dropdown select Current Maintenance Arrestment (CMA)
       (Scotland)

SETTING UP THE CMA

TYPE AND DATES

• Description
  Enter a description for the CMA
• Reference
  Enter the reference number, you will find this on the letter telling you to apply the CMA for the employee.

DATES

• Date Received
  Enter the date the CMA was received.
• Date to apply from
  The date to apply the CMA from.
• Date to stop
  The CMA should only be stopped once the full amount of the order has been paid, Or if you received notification from the Courts to stop the AOE.

 AMOUNTS AND STATUS

To access this screen, click the Amounts and Status tab.

• Daily Amount
  Enter the daily amount to be deducted.
• Total amount to be paid
  The order will show what the total amount to be paid is. Enter in the box provided.
• Admin Charge
  The employer can deduct £1 as an administration charge for deducting the attachment.

STATUS

• Cumulative amount paid at start
  If the employee has already paid some of the attachment (i.e. in another or previous employment) enter the amount here.
• Cumulative amount paid in this employment
  If the employee has already paid part or you have done a mid-year set up, enter the amount already paid here.

Click Save

BrightPay will now apply the attachment of earnings order.