The Direct Earnings Attachment (DEA) pay code is a payroll designation used to process deductions from employee earnings to satisfy legal obligations such as unpaid taxes or child support, ensuring automatic compliance with mandated payment requirements.
To set up a new DEA pay code in portal, follow the steps below.
Click Settings then under Codes, click Pay Code.
Click Create New Pay Code.
🤓Tip: We recommend copying an existing pay code, where a similar one exists. Click the three-dot icon then select Clone.
From the Payment Type drop-down list, select Court Order.
Enter a relevant code and description.
From the Payment Subset Type, select either Percentage or Standard value.
📌Note: Choosing a standard value will make the pay code a fixed-value pay code.
Click OK.
In Step 1 Pay Code Formula, review and update the fields then click Next.
In Step 2 Payment Orders enter the protected earnings rules:
Protected earnings type % - select DEA.
Protected earnings % - enter the % earnings as stated on the order.
Turn on the Nett Earnings toggle.
Net earnings will be calculated as council tax, which excludes non-taxable earnings. After saving the rates, you need to disable this toggle.
Click Add then enter all the Nett Deduction Rates.
In Step 3 Rules, review and add rules then click Next.
In Step 4 General Ledger, review and update the fields then click Save.
Edit the pay code then click Step 2 Payment Orders.
Turn off the Nett Earnings toggle then click Save.
Exclude pay codes from calculation
To exclude pay codes from a DEA calculation, follow the steps below.
Click Settings then under UK Tax Rates, click General.
At the bottom, click Other.
From the Select Detail drop-down list, select DEA Pay Code Exclusions.
Turn on the Exclude from Nett Earnings toggle.
Click Save.