UK Pay: Protected Earnings Incorrect when Multiple DEAs Exists
(Doc ID 2370855.1)
Last updated on SEPTEMBER 06, 2019
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
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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