Priority Order Incorrect For DEA And Non Priority Court Orders
Last updated on MARCH 08, 2018
Applies to:Oracle HRMS (UK) - Version 12.1 HRMS RUP9 and later
Information in this document applies to any platform.
60% Protected earnings are not considered when calculating multiple DEA/Cort Order elements for a single assignment.
The HMRC guidelines state that the employee has protected earnings of 60% of their Net Pay. In cases where the DEA deduction exceeds this, the deduction must be reduced so that the employee receives 60% of their net pay.
Steps to Reproduce:
The issue can be reproduced at will with the following steps:
1. Using UK HRMS Manager Responsibility
2. Add to an employee 2 elements: Court Order Non Priority and Direct Earnings Attachment
3. Run QuickPay
4. Court Order Non Priority element is processed before Direct Earnings Attachment element
Court Order NTPP element entry with fixed deduction £550
DEA NTPP element entry wiht fixed deduction £600
Gross Pay 2443.08
Minus Pension 133.15, PAYE 270.20 and NI A 211.57
Gives NET Pay of 1828.16
60% of NET (Protected Pay) is 1096.90
Court Order NTPP (550) is deducted from the NET pay first as takes priority
leaving NET pay 1828.16 - 550 = 1278.16
This means we can only take 181.26 when processing the DEA NTPP element. Anything more than that reduces the NET to below the 60% threshold.
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