IntroductionWhat is an Attachment of Earnings Order
An Attachment of Earnings Order (AEO) is a legal document that is sent to an employer and requires them to take money from someone’s wages to pay an outstanding debt or bill.
If you are sent an Attachment of Earnings Order for someone who you currently employ, you must make deductions from their pay and pay it directly to the creditor detailed on the order.
For more detailed information on Attachment of Earnings Orders, check out our support article What is an Attachment of Earnings Order.
Adding an Attachment of Earnings Order
You can set up an Attachment of Earnings Order easily on Paycircle and Paycircle will then automatically calculate the payments, set up the payments schedule and apply the deductions each time you run payroll, until the debt is paid or until the person is no longer employed.
To set up an order simply head to the Team area within the app and click on the settings cog to view the actions menu.
Select Attachment of Earnings and then go through the steps in the wizard.
Make sure you have the document that has been sent to you to hand as it will contain all the information you need to set up the payment schedule.
Once the schedule has been set up, you will find the details in the person’s profile area.
In the Team section, click on the person and you’ll see the Attachment of Earnings Order in the overview section of their profile.
Editing an Attachment of Earnings Order
You can edit an Attachment of Earnings Order after you have set one up. If you notice that you have entered some of the details incorrectly, you can open the order that’s been set up on Paycircle and simply make your updates and save it again.
Go to the Team section and locate the employee whose order you would like to edit. Click on their record and go to their Profile area. You will see their order here.
Click on the order and you will be able to make your edits and save it again.
Cancelling an Attachment of Earnings Order
If you need to cancel an order that has already been set up and possibly even had some payments made, you can do this easily in Paycircle.
Go to the Team section and locate the employee whose oder you would like to cancel. Click on their record and go to their Profile area. You will see their order here. Click on the order and you will be able to select the reason for the cancellation and then cancel the order.
You will receive a cancellation notification by email and your employee will receive one too.
Setting up an existing Attachment of Earnings Order where payments have already been made
In some circumstances you may need to set up and Attachment of Earnings Order that is already part way through a payment schedule. If a new employee joins your company and is part way through paying off a debt, they may bring their oder with them for you to set up on payroll or the creditor may contact you directly to set up a schedule for the remainder of the payments.
To set up an order that is part way through, simply set up the order as if it were a new order and at the beginning of the set up wizard you will be asked if the order is a new order or an existing one.
Select the option for an existing order.
You will then enter the details of the order, including the total amount of the debt and the amount that’s been paid off so far. This will then set up a payment schedule on Paycircle, for that employee, for the remainder of the debt.
An article by Catherine Pinkney.
Posted on Thursday 23 Aug, 2018August 28, 2018