Describe what a salary sacrifice is
A salary sacrifice is an agreement for a reduced salary in exchange for a non cash benefit.
What does the employer need to provide for a salary sacrifice scheme to be valid?
An amended contract of employment demonstrating the new terms
What is an AEO?
Attachment of Earnings Order
Issued when an employee has been ordered by a court to pay a fine or debt, such as Council tax or required to pay maintenance in respect of a spouse or child maintenance, has received more benefits than they were entitled to or received income support and must repay it
What is an IPO?
It is an order issued by the high court or a county court sent to an employer by the person responsible for the bankrupts estate: civil servant, trustee or licensed insolvency practitioner
What are the priority orders?
AEOS for maintenance & fines and DEO:’s
What are the non priority orders?
AEOs for civil debts & DEAs
What is the procedure for handling AEOs and DEOs?
-Calculate employees attachable/net earnings
-Identify the PER/PEP
-Deduct all or as much as possible of the NDR
-deduct admin fee
-pay remainder to employee
-send payment to court
