Example 3 - Current scheme
Current Scheme - National Insurance number used as reference
No deduction can be taken
First week
The employee’s net earnings are temporarily reduced to £90 a week. The deduction rate is £32 a week, and the protected earnings proportion is £96.
Net earnings £90
Less the protected earnings proportion £96
Leaves £0
Send us £0
You should not take anything towards administrative costs because you cannot take a deduction.
Shortfall of £32 is carried forward to next pay period.
Second week
Net earnings £170
Less the protected earnings proportion £96
Leaves £74
Send us £64
(£32 + £32 shortfall)
You may take and keep up to £1 towards your administrative costs. This amount is in addition to the deduction from earnings order.
As the examples show, different amounts can be taken where earnings fluctuate. If the non-resident parent’s (your employee) earnings regularly falls below their protected earnings proportion, they should contact us as their child maintenance calculation may need to be changed.
Forms
If you maintain payroll software
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