PART 1: DATES, DEFINITIONS AND OBLIGATIONS
• reduce the arrestable earnings by the amount of protected earnings for the CMA, • add together the deductions specified in the CMA and as taken from the tables for the EA, • calculate the deductions for the EAand CMAas a percentage of the total required deduction, • apply the resulting percentages to the amount of arrestable earnings. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS The Act also changed the calculation process when applied to holiday pay. Whereas previously advanced holiday pay was added to arrestable earnings for that week and the deduction applied. Now it is necessary to calculate: • the required deduction on arrestable earnings excluding holiday pay as above • the deduction for each week’s holiday pay (treating this as the only arrestable earnings for that week, and then • add together the two or more deduction amounts and apply the total deduction to the pay for the week when advanced holiday pay is included. Unlike England and Wales, in Scotland monies from EAs and CMAs are sent direct to the creditor and the creditor has a requirement to provide a copy of the EA or CMA to the debtor as does the Court. At the same time the employer must advise the debtor the date and the amount of the first deduction. Once the first deduction has been calculated the employer must tell the creditor, for EAs and CMAs, and the Sheriff Clerk for conjoined orders: • the debtor’s pay frequency, • the date of the first pay day after receipt of the order, • the arrestable earnings and the amount deducted for the CMAand the EAwithin a conjoined order. A copy of this schedule must also be sent to the debtor and the process must be repeated on the later of the: • 6th April following receipt of the order, or • six months after receipt of the order; Should the debtor leave employment, the Sheriff Clerk must be notified of the name and address of the employee’s new employer. Failing to do so results in an employer being liable to pay the creditor (as a penalty) twice the deduction that might have been taken on the next pay day had the debtor remained in that employment. No printing, copying or reproduction permitted. and then at the start of each tax year until the order is discharged. AUTO-ENROLMENT Since October 2012, employers have been auto-enrolling eligible jobholders (employees aged 22 or over and up to state pension age, earning over the earnings trigger of £10,000 in a pay reference period) into a qualifying pension scheme and applying a minimum level of employer and employee contributions. Until February 2018 this was a phased implementation. Since October 2017, new employers
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