PART 1: DATES, DEFINITIONS AND OBLIGATIONS
employer to cease deductions. The date of the order is significant as the treatment of arrears and protected earnings differ. For pre-March 2003 Orders the arrears, protected earnings and deductions were carried forward. For post-March 2003 orders they did not. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS On receipt of a CSA DEO the employer had to: • deduct the amount specified in the order where possible • pay the amount over to the CSA by the 19th of the following month • show the deduction on the employee’s pay statement • must inform the CMS within ten days of an employee’s date of leaving. The employer was permitted to deduct £1 each time a DEO was actioned even if it reduced the employee’s earnings below the PER as long as it did not reduce wages below that of the NMW/ NLW which was in force at the time. Where payments were due to the CSA in Northern Ireland, these had to be sent separately to those due in the rest of the United Kingdom. 2012 CMS orders These indicate a percentage (60% currently) of attachable earnings that is to be treated as the PER. The NDR is shown as a monthly amount to be amended by the employer if the employee is not monthly paid. Once a 2012 order is sent to an employer, reporting changes will kick in for that employer for all DEOs they are operating. A new online portal is available to employers to report deductions, including: • a reason code on the monthly payment summary that indicates why the deduction has not been as specified as on the order – perhaps due to unpaid leave for example • the payment schedule must be sent monthly even if the employee’s pay frequency is weekly • a 12-digit employer reference number that begins with a 50 for employers and 51 for agents and a 12-digit employee reference number • deductions are shown separately for the Child Maintenance Service (CMS) ongoing maintenance, and CSA arrears under the Residual Body Scheme (RBS) (The CSA is classed as the residual body until its functions fully cease in 2018.) • payslips to show the descriptions: • ‘CMS DEO’ for ongoing maintenance and arrears to the CMS • ‘RB DEO’ for CSA arrears under the RBS • All payments to move to BACS or cheque rather than DACT. No printing, copying or reproduction permitted. Direct Earnings Attachment A new court order was introduced on a pilot basis in April 2013 to recover overpaid state benefits where voluntary action has failed. For 2013/14 orders were calculated manually and were incorporated into payroll software from April 2014. Software specifications were issued to over 600 payroll software providers in July 2014. Total court deductions including under a DEA must not exceed 40% of net pay, i.e. protected earnings of 60%, arrears are not carried forward. Net earnings are defined as after • tax,
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