Attachment Of Earnings Orders (aeos)
• •
NICs and
superannuation contributions.
The following are treated as earnings: • wages and salary (including overtime, bonuses, fees and commission) • occupational pensions • compensation payments • SSP • pay in lieu of notice. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS The following are not treated as earnings: • statutory payments – SMP, SAP, OSPP and ShPP • • • state pension or benefits expenses redundancy pay. Deductions can be either by reference to tables or a fixed deduction. Deductions stop when any notified balance is paid off or the employer is notified to cease deductions. Payment by 19th of the month following the month of deduction is by BACS (or cheque or debit card) and is accompanied by a payment schedule sent with the order; this must be sent even if no deduction is made as earnings are too low. A £1 admin fee is chargeable as for other ‘court orders’. They are non-priority orders so are blocked by a student loan. Local authorities can also issue them to recover overpaid housing benefit and if so the bank details that the order is paid to are the council’s not DWP’s as for all other central government DEAs. Originally employers were not required to operate the new orders if they had ten or fewer employees, however this temporary easement only applied if the employer was in this position prior to April 2013, or met some other criteria.
No printing, copying or reproduction permitted.
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