WHAT IS AN AEO
Where a judgment debt is in arrears and the debtor is in PAYE employment you can make an application to the court to order the judgment debtor’s employer to make deductions from the judgment debtor’s earnings. If the court makes an order, the employer has to make deductions, at weekly or monthly intervals (or whenever they are paid), until the judgment debt is satisfied. This is known as ‘attaching’ the debtor’s earnings. The court may also, in some circumstances, make an AEO without application from a judgment creditor. For example, to secure payments under an administration order or at the hearing of a judgment summons.
WHAT MUST THE EMPLOYER DO
1)Go to Payroll, and select the employee from the listing
2) Under Additions & Deductions, click the Add button
3) Select Attachment Orders…
4)Click ‘Add Attachment Order’ and select the appropriate Attachment Order from the listing.
TYPES AND DATES
1) Enter a description for the Attachment Order.
2) Enter the reference number of the Attachment Order, which can be found on the documentation received.
3) Enter the date to apply the Order from.
4) Enter the date to stop – the Order should only be stopped once the full amount of the Order has been paid or you have received notification from the Courts to stop it.
AMOUNTS AND STATUS
1) Priority – tick the box provided if the Order is a priority order.
2) Periodic amount - enter the periodic amount to be deducted, as stated on the Order.
3) Protected Earnings – enter the Protected Earnings Ratefor the employee, as stated on the Order.
4) Admin Charge – tick the box provided if you, the employer, wish to deduct £1 as an administration charge for operating the Order.
5) Enter the Attachment Shortfall at start
6) Enter the Earnings Shortfall at start
7) Cumulative amount paid at start - if the employee has already paid some of the attachment (for example in a previous employment) enter the amount here.
8) Enter any Year to Date deductions, if applicable
9) Click Save.
BrightPay will now apply the Attachment Order on the employee’s payslip from the relevant period.
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