Set Up Deductions for Court Orders

You must create a Court Orders and Student Loans calculation card to create court order deductions for an employee. And then you can add one or more court order deduction components to the card.

Before You Start

Before you start creating court order deduction, make sure you complete these tasks.

Task

Action

Elements

  • Create the court order element.

  • Define the element eligibility.

  • Identify attachable earnings. By default, all new elements you create for both Regular and Irregular Earnings classifications have a subclassification of Attachable Earnings. They are subject to all court order involuntary deductions. If needed, modify the subclassifications for an Earnings element to exclude its earnings from the total attachable earnings amount. You can do this for all or specific deductions.

Common Lookups

  • Define court order issuing authorities in the lookup Issuing Authority for GB Court Orders.

  • For each order you add to an employee's calculation card, select a predefined issuing authority.

Third-Parties

  • Create the payee that should receive the court order payments.

  • In the Party Usage Code field, select External Payee.

Create the Calculation Card

Now you're ready to create the Court Orders and Student Loans calculation card.

  1. In Payroll, search for and select the person for whom you want to create the calculation card.

  2. Select the Calculation Cards task.

  3. Click Create.

  4. On the Create Calculation Card screen, select the calculation card name Court Orders and Student Loans.

  5. Click Continue.

    Note: Creating the calculation card automatically creates a Court Order Information component.

Add the Court Order Components

To add court order calculation component and calculation component details, follow these steps:

  1. In the Calculation Components section, click Add Row.

    You will find a list of all the elements created under primary classification Involuntary Deductions and secondary classification for the specific court order type.

  2. In the Create Calculation Component window, select the calculation component with the same name as the previously-defined court order element.

  3. In the Parent Calculation Component field, select Court Order Information.

  4. Enter a Reference Code to uniquely identify this deduction, such as a court order number, case number, or other identifier provided by the issuing authority.

  5. Click OK

The calculation component displays the court order you created as a new record. The corresponding calculation component details is automatically created.

You can create one record for each court order type that's issued to the employee. For some court order types, you may need to enter additional information in the Calculation Components Details section. For example:

  • Attachment of Earnings Orders and Deductions from Earnings Orders

    If the employee has multiple terms or assignments with different frequencies, identify the main earnings to be used for deductions calculation.. Specify a weekly or monthly frequency for it.

  • Deduction from Earnings Orders

    Because the deduction calculation varies depending on when the order was assessed, specify the calculation type.

Define Calculation Values for Court Order Deductions

The calculation value sets are based on the court order type that you added to the employee. Here's how you can define calculation values for processing court order deductions:

  1. In the Court Orders and Student Loans calculation card, click the Enterable Calculation Values on Calculation Cards tab.

  2. Click Create.

  3. On the Edit Calculation Values window, select a calculation value in the Name field and enter the appropriate value. The enterable calculation values for each order type are shown in the table below.

    Note: You can save the deduction component without defining all required enterable values. But the payroll run can't properly calculate the deduction amounts unless you provide these values.

    Order Type

    Enterable Calculation Values

    Attachment of Earnings Order Priority

    Attachment of Earnings Priority Northern Ireland

    Attachment of Earnings Nonpriority

    Attachment of Earnings Nonpriority Northern Ireland

    *Normal Deduction Rate

    *Protected Earnings Rate

    Original Outstanding Debt (only required for nonpriority orders)

    Attachment of Earnings Fines

    Council Tax Attachment of Earnings

    *Original Outstanding Debt

    Deduction from Earnings Order

    *Normal Deduction Rate

    *Protected Earnings Rate

    Earnings Arrestment

    *Original Outstanding Debt

    Current Maintenance Arrestment

    Daily Deduction Rate

    Protected Earnings Rate

    Conjoined Arrestment Order

    CMA Daily Deduction Rate

    EA Original Outstanding Debt

    Direct Earnings Attachments

    Deduction Rate

  4. Click OK.

  5. Repeat these steps for each required calculation value set.

Define Association Details for Court Order Deductions

Once you have created the court orders components, you must create the associations. You can create the associations at two levels:

  • Association between the parent components, such as Court Order Information and the tax reporting unit (TRU). Multiple associations can exists if the court order calculation components are used by more than one TRU.

  • Association between the child component, such as, the relevant calculation component details and assignments of the employee. If the court order deduction applies to all terms or assignments included in the payroll relationship, you don't need to create association details.

Here's how you can create associations for the court order deductions:

  1. In the Court Orders and Student Loans calculation card, click Associations.

  2. In the Associations section, click Create.

  3. Select a TRU for this payroll relationship, and click OK.

  4. In the Association Details section, click Create.

  5. In the Assignment Number field, select the assignment that's subject to this deduction.

  6. Repeat these steps for each assignment applicable to this deduction.

  7. Save the card.

Repeat this entire process to create components for additional court orders as needed.

Note: An employee can only have one of each of these court order types at any time: