This article explains how to setup Attachment of Earnings Orders and Direct Earnings Attachment Deductions, and apply the deductions automatically each pay run.
What's covered in this guide?
Set up relevant "Deduction Types"
To begin setting up deduction types, navigate to Payroll > Settings > Deduction Types, then click the 'New' button.
For this, you need to enter the name of the deduction, the journal account, and choose whether it is an Attachment Earnings Order, or a Direct Earnings Attachment.
These Deduction Types will serve as workable templates for your staff.
💡Note: You can only have one deduction template per deduction type per user. Make sure to name each deduction specifically (e.g., "Council Tax" or "Child Support") so you can easily identify it later.
Below is an example set up of a Deduction Type, "Child Support" which is an Attachment of Earnings Order:
Once set up, remember to click 'Create'.
Set up "Deductions" for staff
Once Deduction Types have been created, you can setup Deduction templates for individual staff, which will apply the deductions automatically on their payslips whenever the pay run is created or recalculated.
To do this, navigate to Payroll > Staff> Select an employe > On their profile, go to 'Payroll Details' and scroll down to the Deductions section:
Click 'Add' to create a new template.
Once in the form, select the deduction type that you would like to add a template for, and the form will update according to what type of deduction you have selected.
Configure "Attachment of Earnings Order" Deductions for an Employee
Below is an explanation of the Attachment of Earnings Order deductions template and how to set this up for staff.
Configure Attachment of Earnings Order - Select "Order Type"
Select if the Attachment of Earnings Deduction is for Council Tax, Child Support, or 'Other'.
💡Note: Workforce has templated some configuration for Council Tax and Child Support Attachment of Earnings Orders in line with UK Government requirements.
Attachment of Earnings Order: Council Tax
If you select Council Tax, you won't be prompted to enter a deduction method or protected earnings rate. Instead, Council Tax deductions are calculated automatically using set rate tables. These rate tables support weekly, fortnightly, 4 weekly and monthly payment frequencies and will display on the form for you to select:
Important: Council Tax deductions ignore the user's protected earnings rate.
Attachment of Earnings Order: Child Support
If you select Child Support, the order priority field is hidden because Child Support orders are always set to priority by default. You'll also need to set an end date rather than a deduction cap for the deduction schedule.
Attachment of Earnings Order: Configurable Fields
For "Other" Attachment of Earnings Deduction order types, the below fields are customisable.
Reference Number
A unique identifier for the deduction (optional).
Payment Type
This dictates the amount to be deducted each period, this can be either a fixed amount, or a percentage of net pay.
Protected Earnings Rate (PER)
This represents the amount of net earnings the employee must retain after the Attachment of Earnings deduction has been applied. For Attachment Earnings Orders, this is always a fixed amount.
💡 Note: If non attachment deductions are applied to the payslip manually after the Attachment of Earnings deduction has applied, they may take the user below the protected rate.
Order Priority
Select whether the deduction is a "Priority" or "Standard" order. This affects which order the deductions are applied to the payslip. (See the order of Deductions below)
Collect £1 Admin Fee
You may choose to collect the deduction administration fee, which will deduct £1 from employee earnings to cover the cost of making each deduction.
💡 Note: This fee may take the employee earnings below the Protected Earnings Rate (PER), but will not be applied if it would take the earnings below the National Minimum Wage.
Assigned Date
The date the order was given to the employee (required).
This will affect the order in which to make deductions (See the order of Deductions below).
Deduction Schedule
Set when this deduction will be applied.
If total amount to be paid is set, the deduction will apply each payrun until the amount has been "paid". The total paid will update each posted pay run.
If an end date is set - the deduction will apply on each payrun within the applied date and end date.
Configure "Direct Earnings Attachment" Deductions for an Employee
Below is an explanation of the Direct Earnings Attachment deductions template and how to set this up for staff. Please note - there are no preconfigured order types. The below fields will need to be completed if mandatory.
Reference Number
A unique identifier for the deduction (optional).
Deduction Method
Refers to the amount to be deducted each period - and how.
For DEAs, you can set it as either a fixed amount, or choose from set standard or higher percentage rates (shown on the form, only weekly, fortnightly, 4 weekly and monthly are supported).
Protected Earnings Rate
The percentage of earnings that must be retained after the attachment deduction has been applied. This must be a percentage of earnings instead of a fixed amount.
Collect £1 Admin Fee
You may choose to collect the deduction administration fee, which will deduct £1 from employee earnings to cover the cost of making each deduction.
💡 Note: This fee may take the employee earnings below the Protected Earnings Rate (PER), but will not be applied if it would take the earnings below the National Minimum Wage.
Assigned Date
The date the order was given to the employee (required).
This will affect the order in which to make deductions (See the order of Deductions below)
Deduction Schedule
Set when this deduction will be applied.
If total amount to be paid is set, the deduction will apply each payrun until the amount has been "paid". The total paid will update each posted pay run.
If an end date is set - the deduction will apply on each payrun within the applied date and end date.
Attachment of Earnings and Direct Earnings Attachment Deduction Sort Order
Attachment of Earnings and Direct Earnings Attachment deductions are applied to the employees Net Pay after Income Tax, National Insurance, and Pension contributions have been deducted. For staff who have a combination of Attachment of Earnings and Direct Earnings Attachments, Workforce will deduct these in the below order:
High priority Attachment Earnings Orders (in order of what date they were assigned to the user)
Standard Attachment Earnings Orders (in order of what date they were assigned to the user)
Direct Earnings Attachments (in order of what date they were assigned to the user)
Earnings Attachment Summary Report
Workforce provides an out of the box report, which summarises employees Attachment of Earnings and Direct Earnings Attachment deductions each pay period to provide insights to management teams.
The report includes:
Employee name
Employee deduction type
Attachment type
Order priority
Reference number
Rate type
Employee net pay in period
Amount deducted in period
Deduction start date
Deduction end date
Total owed
Total amount deducted (in all relevant periods)
Remaining balance
Admin fee