Apply a Direct Earnings Attachment to an employee

A Direct Earnings Attachment (DEA) is used to recover benefit overpayments and covers all types of benefits that are administered by the Department of Work and Pensions (DWP). They can also be used by local authorities to recover housing benefit overpayments.

A DEA has its own regulations and operates differently from other orders such as a Deduction from Earnings Order (DEO), AEO and Council Tax Attachment of Earnings Order (CTAEO).

A DEA does not replace any of these other orders. In some circumstances, employers may receive requests to implement deductions for multiple orders for the same employee.

You have a legal obligation to implement a DEA once it has been received. To learn more about DEAs, see the Department for Work and Pensions (DWPs)’s Direct earnings attachment: a guide for employers.

Before you begin

UK Payroll will automatically deduct the employee’s periodic deduction based on the information you provide.

Note: When operating a DEA, you must ensure that your employee if left with at least 60% of their net wages. This is known as the Protected Earnings amount.

There are 3 DEA options:

• Standard Rate - The maximum amount that can be taken from an employee’s net earnings is 20%
• Higher Rate - The maximum amount that can be taken from an employee’s net earnings is 40%.
• Fixed Rate - DWP may ask you to apply a fixed deduction amount for an employee. If the net earnings in a payroll cycle are below the Standard and Higher Rate thresholds, no DEA deduction should be applied.

For more information, see DWP’s How is a DEA calculated?

How to add a DEA to an employee

1. From the left side bar, navigate to Employees.
2. Select the relevant employee.
3. Navigate to Pay items.
4. Click Add Pay item.
5. Select Attachment of Earnings.
6. Select (DEA) Direct Earnings Attachment from the Type of order drop down.
7. Enter the employee’s National Insurance number in the Order reference field.
8. Enter the Start of order date.

   Note: Deductions will be applied to the employee from the next available payroll that falls on or after 22 days following the order start date. For example, if the order start date is November 24th, and payday is November 30th, the deductions will start in December’s payroll.

9. Click Next.
10. Enter the Total amount owed, which can be found in the DEA notice.
11. Select No to Has any of the total amount owed already been repaid? if the employee hasn’t repaid any amount toward the total order. Select Yes if the employee has repaid any amount toward the total order. This can include repayment in a previous tax year. Fill in the Amount repaid to date, and the amount repaid in the current tax year in Of that in the [current tax year].
12. If the DEA notice states a fixed deduction, select Enable fixed amount per payroll and enter the Deduction per payroll listed in the notice.
13. Select the Deduction rate (Standard rate or Higher rate) stated in the DEA notice.
14. Click Next.
15. If you want UK Payroll to handle the repayments to DWP, select Pay order via UK Payroll. Enter a Payment reference and Payment details. Otherwise, select Pay order manually outside of UK Payroll. By choosing the manual payment method, you will be responsible for making payments within the specified timelines in accordance with the order notice.

    Note: For the correct payment reference and account details, see DWP’s Methods of payment.

16. Click Next.
17. Review the Order summary. Click Back to amend any details. Once you’re happy with the details, click Save & close.