Direct Earnings An Employers Guide - Higher Rate

Employers Checklist

a. Does the person named in the notice work for you?

  • Yes - go to b.
  • No - tell the Council within 10 days

b. Are you a new or micro business? (see point 1.2 for guidance)

  • Yes - contact the Council
  • No -go to c.

c. Are there any orders for deductions already in place that will take priority over the DEA and prevent it being set up?

  • Yes - Inform us within 10 days
  • No - go to d.

d. Calculate your employees net earnings for DEA purposes (see point 5 for guidance)

e. Do they earn enough to allow deductions to be made? (see point 6 for guidance)

  • Yes - go to f.
  • No - tell the Council within 10 days

f. Decide how much of their net earnings will be deducted (see point 6 for guidance)

g. If you deduct that amount, will they be left with less than 60% of their wages - the protected amount? (see section 6 a for guidance)

  • Yes – If possible, adjust your deductions level to leave them with 60% of their net earnings OR within 10 days, tell us that no deductions can be made.
  • No – go to h.

h. Make sure that the total amount deducted through this and a previous deduction (or deductions) is not more than the total of the notice.

i. Make the necessary arrangements to your payroll for the deduction to be made.

j. Notify your employee of the amount to be deducted no later than the pay day on which the deduction is made.

k. Pay the amount deducted from your employee’s earnings to the Council no later than the 19th day of the month following the month in which the deduction was made.

If paying by BACS, send the Council a Direct Earnings Attachment payment schedule with details of the payment. (See section 13 for guidance).