When a Council Tax court order is applied to an employee, the nett calculation determines the portion of their pay subject to the deduction. If specific pay codes are not explicitly excluded from this calculation, they are included by default, which can result in inaccurate deduction amounts.
Configuring pay code exclusions ensures only the intended earnings are considered, keeping deductions accurate and compliant with the court order.
Why this matters
Including incorrect pay codes in the Council Tax court order nett calculation can lead to over- or under-deductions, affecting employees net pay and payroll compliance. Apply this configuration before processing any payroll run where both the affected pay codes and court orders are active.
Exclude a pay code from the Council Tax court order nett calculation
To exclude a pay code from the Council Tax court order nett calculation, follow the steps below.
Click Settings, then under Codes, click Pay Codes.
In the search field, enter the name of the pay code you want to exclude and select it from the results.
Click the three-dot icon next to the pay code, then select Edit.
Click Next to navigate to the Rules page then click Add.
From the Rules dropdown menu, select Excluded for Council Tax.
Turn on the toggle then click OK.
Click Next then click Save.