The Child Maintenance Service can ask you to: give information about an employee deduct child maintenance from an employee’s earnings send an employee’s child maintenance payments to the Child Maintenance Service You can be fined £500 for each missed payment and up to £1,000 for not providing information you’ve been asked for. Deduction from earnings order ( DEO ) DEOs are a way of collecting child maintenance directly from a paying parent’s earnings or pension. The paying parent is the parent who does not have main day-to-day care of the child. When you’ll get a DEO You’ll be sent a DEO if your employee is a paying parent who: chooses to pay child maintenance direct from their earnings does not already pay child maintenance that they owe does not pay the correct amount does not pay on time Your legal obligations when deducting child maintenance By law, you must: give information to the Child Maintenance Service if you’re asked to send payments as soon as possible, to arrive no later than the 19th day of the month after the month you made the deduction tell the Child Maintenance Service immediately if there are any problems with taking payments from a paying parent’s earnings make regular deductions You could be taken to court if you do not send payments and do not explain why

How to make deductions

You must deduct the amount of child maintenance stated on the deduction from earnings order ( DEO ) from your employee’s net earnings or pension. By law you must send payments to the Child Maintenance Service . They’ll send the money to the other parent to help cover their child’s living costs. How it works Check what counts as earnings . Calculate 60% of your employee’s net earnings (known as their ‘protected earnings’). Make the deduction from your employee’s net earnings - as long as it leaves them with their protected earnings. Take off an extra £1 towards your administrative costs (if you want to). Send the deduction to the Child Maintenance Service. If you’re unable to deduct the full amount from their protected earnings, you must send an updated payment schedule to the Child Maintenance Service. How to calculate protected earnings You must make sure that your deduction leaves your employee with at least 60% of their net earnings (known as ‘protected earnings’). You can still deduct the £1 administrative cost if it takes your employee’s income below their protected earnings rate - but not if it takes their income below the National Minimum Wage . If you can deduct the full amount from your employee’s protected earnings Deduct the full amount from your employee’s earnings if it does not affect their protected earnings. Send it to the Child Maintenance Service as soon as you make the deduction. Example The amount your employee owes in child maintenance is £150 a month. Your employee’s net earnings are £1,200 a month. Their protected earnings are £720 a month. Net earnings of £1,200 minus the protected earnings of £720 = £480. In this case, the employee has enough left for you to deduct the full amount of £150. If you cannot deduct the full amount from your employee’s protected earnings If you cannot deduct the full amount, you must: send any deduction you’ve been able to make to the Child Maintenance Service keep a record of the unpaid difference send an updated payment schedule to the Child Maintenance Service You must calculate the unpaid difference, plus the regular amount your employee owes in child maintenance the next time you pay them. You must still leave your employee with their protected earnings. Example The amount your employee owes in child maintenance is £250 a month. Your employee’s net earnings are £500 a month. Their protected earnings are £300 a month. Net earnings of £500 minus the protected earnings of £300 = £200. In this case, the employee does not have enough left for you to deduct the full amount of £250. You must send £200 to the Child Maintenance Service. The unpaid difference of £50 is carried forward to the next time you pay your employee. If the unpaid difference is carried forward for several weeks before being repaid, keep a record of the ongoing amount. If you pay your employee holiday pay in advance You’ll have to: calculate your employee’s total net earnings for the pay period multiply the protected earnings and the deduction by the number of weeks in the pay period send the deduction to the Child Maintenance Service Example The earnings include 1 week’s pay plus 2 weeks’ holiday pay paid in advance. Your employee has net earnings of £160 a week. The amount your employee owes in child maintenance is £32 a week and the protected earnings are £96 a week. Your employee’s net earnings are £160 x 3 = £480 (1 week’s pay + 2 weeks’ holiday pay). Net earnings of £480 minus the protected earnings of £96 x 3 (£288) = £192 In this case, the employee has enough left for you to deduct the full amount of £96 (£32 x 3). If you need to deduct other debts from your employees pay If your employee has other debt to pay, for example council tax debt, a court can issue: an Attachment of Earnings Order (England, Wales and Northern Ireland) Earnings Arrestment Order (Scotland) How you prioritise a deduction depends on which country the order was issued in. In England, Wales and Northern Ireland, a DEO takes priority unless you have received a priority Attachment of Earnings Order ( AEO ) for your employee. In Scotland, a DEO takes priority over other deductions.

What counts as earnings

A deduction from earnings order ( DEO ) can only be made from an employee’s net earnings. When calculating a DEO amount, net earnings means earnings after the deduction of: Income Tax Class 1 National Insurance pension or superannuation contributions You can make a deduction from the following earnings: wages, fees, bonus, commission, overtime pay or any payments on top of wages private or occupational pensions and compensation payments Statutory Sick Pay contractual sick pay contractual maternity pay contractual paternity pay contractual adoption pay contractual redundancy pay Statutory pay is money that your employees are entitled to by law. Contractual pay is what you agree with your employees in addition to statutory pay. What does not count as earnings You cannot make a deduction from any of the following: amounts paid by a public department of the government of Northern Ireland or any country outside the UK any social security pension, allowance or benefit tax credits any pension or allowance paid for disability guaranteed minimum pension within the Social Security Pensions Act 1975 Statutory Maternity Pay Statutory Paternity Pay Statutory Adoption Pay Statutory Redundancy Pay If any of these payments are your employee’s only income, do not make a deduction. You should update your payment schedule .

Make deduction from earnings order (DEO) payments

Send deduction from earnings order ( DEO ) payments to the Child Maintenance Service as soon as you make a deduction . If you cannot make the full deduction you must send an updated payment schedule to the Child Maintenance Service by post or online. If you have more than one employee with a DEO , send each payment separately. You can be fined £500 for each missed payment and up to £1,000 for not providing information you’ve been asked for. Paying the Child Maintenance Service You can pay by: using the online service calling the Child Maintenance Service Employer Payment Team using the Banks Automated Clearing System (Bacs), Faster Payments or CHAPS transfer sending a cheque to the Child Maintenance Service Pay using the online service You can manage your Child Maintenance Service payments online . You need to contact the Child Maintenance Service Employer Payment Team to register. Pay by phone Phone the Child Maintenance Service Employer Payment Team. Child Maintenance Service Employer Payment Team Telephone: 0800 232 1961 Textphone: 18001 0800 171 2345 Monday to Friday, 8am to 5pm Find out about call charges Pay by Bacs, Faster Payments or CHAPS You can make a transfer from your bank account by either Bacs, Faster Payments or CHAPS. You should use: sort code: 60 70 80 account number: 10026584 account name: DWPCMGEMPLOYER account code: 0 transaction code: 99 You’ll need to give the employee’s National Insurance number as the reference. Pay by cheque Send a cheque made payable to ‘Child Maintenance Service’. Child Maintenance Service 21 Mail Handling Site A Wolverhampton WV98 2BU The cheque must: match the amount on the payment schedule have your employer reference number on the back - this is a 12-digit number starting with 5 have your employee’s National Insurance number on the back If you have more than one employee with a DEO , send a copy of your payment schedule with the cheque. If you need help with a payment You can either: manage your Child Maintenance Service payments online call the Child Maintenance Service Employer Payment Team Child Maintenance Service Employer Payment Team Telephone: 0800 232 1961 Textphone: 18001 0800 171 2345 Monday to Friday, 8am to 5pm Find out about call charges Tell your employee You must tell your employee in writing about each deduction when you give them their payslip. Include whether you have taken £1 administrative costs.

Updating your payment schedule

You’ll get a monthly payment schedule by post after you’ve been sent a deduction from earnings order (DEO) . It will tell you all your employees who have a DEO and the amount due for each employee. You must send an updated payment schedule to the Child Maintenance Service if you cannot send the full deduction amount. You must include how much you’ve deducted and why you’ve not been able to deduct the full amount. How to send an updated payment schedule You can update your payment schedule online . You can also fill in the form you received in the post and send or email it to the Child Maintenance Service Employer Payment Team. Child Maintenance Service Employer Payment Team 2012scheme.employerservice@dwp.gov.uk Child Maintenance Service Employer Payment Team Child Maintenance Service 21 Mail Handling Site A Wolverhampton WV98 2BU

When you must contact the Child Maintenance Service

You must contact the Child Maintenance Service within 10 days if: you’re asked to set up a deduction from earnings order ( DEO ) for someone who does not work for you there’s a problem setting up an employee’s DEO your employee leaves your employment your business stops trading How to contact the Child Maintenance Service You can either: use the Child Maintenance Service online call the Child Maintenance Service Employer Payment Team Child Maintenance Service Employer Payment Team 2012scheme.employerservice@dwp.gov.uk Telephone: 0800 232 1961 Textphone: 18001 0800 171 2345 Monday to Friday, 8am to 5pm Find out about call charges

Make child maintenance deductions from an employee's pay

Overview

The Child Maintenance Service can ask you to:

give information about an employee
deduct child maintenance from an employee’s earnings
send an employee’s child maintenance payments to the Child Maintenance Service

You can be fined £500 for each missed payment and up to £1,000 for not providing information you’ve been asked for.

Deduction from earnings order (DEO)

DEOs are a way of collecting child maintenance directly from a paying parent’s earnings or pension.

The paying parent is the parent who does not have main day-to-day care of the child.

When you’ll get a DEO

You’ll be sent a DEO if your employee is a paying parent who:

chooses to pay child maintenance direct from their earnings
does not already pay child maintenance that they owe
does not pay the correct amount
does not pay on time

Your legal obligations when deducting child maintenance

By law, you must:

give information to the Child Maintenance Service if you’re asked to
send payments as soon as possible, to arrive no later than the 19th day of the month after the month you made the deduction
tell the Child Maintenance Service immediately if there are any problems with taking payments from a paying parent’s earnings
make regular deductions

You could be taken to court if you do not send payments and do not explain why

View a printable version of the whole guide

Make child maintenance deductions from an employee's pay

Overview

Deduction from earnings order (DEO)

When you’ll get a DEO

Your legal obligations when deducting child maintenance

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Make child maintenance deductions from an employee's pay

Overview

Deduction from earnings order (DEO)

When you’ll get a DEO

Your legal obligations when deducting child maintenance

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Help us improve GOV.UK

Help us improve GOV.UK