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Add a court order in QuickBooks Advanced Payroll

by Intuit•6• Updated 1 week ago

Learn how to add a court order to an employee’s record in QuickBooks Advanced Payroll, manage multiple orders, and understand how student loans are affected.

Add a court order

Select Employee Details, then Pay Run Inclusions.
Select Add on the right-hand side of Deductions.
From the drop-down menu, select Post-Tax Deduction as the deduction category, then choose Apply Court Order.
In the box that appears, select the appropriate court order from the drop-down menu. QuickBooks will pre-populate the most common settings for that type of court order.

Supported court orders

QuickBooks supports the following court orders:

England/Wales Attachment of Earnings Order (AEO) – Priority
Deduction from Earnings Order (DEO) – Pre March 2003
Deduction from Earnings Order (DEO) – Post March 2003
Council Tax Attachment of Earnings Order (CTAEO)
England/Wales Attachment of Earnings Order (AEO) – Fines
England/Wales Attachment of Earnings Order (AEO) – Non-Priority
Scotland Earnings Arrestment (EA)
Department of Work and Pensions Direct Earnings Attachment (DEA) – Higher Rate
Department of Work and Pensions Direct Earnings Attachment (DEA) – Standard Rate
England/Wales Council Tax AEO Pre 2007 (CTPRE07)

Specify deduction amount

Once you have selected the court order, select Save and fill in the required fields. You can choose how the deduction is calculated:

Fixed – a set amount every pay run
Percentage of gross – a percentage of gross earnings
Percentage of net – a percentage of net earnings
Varied based on earnings – select the type of court order and pay frequency (weekly/monthly)

Manage multiple court orders

If an employee has multiple court orders, QuickBooks needs to know the order of priority. By default, the system sets this to 0, but you should define the priority for each order.

To set priorities

Select Employee Details, then Pay Run Inclusions.
Select Add on the right-hand side of Deductions.
From the drop-down menu, select Post-Tax Deduction, then Apply Court Order.
In the Priority box, enter the level for the court order.

Student loans

Whether a student loan is deducted depends on the type of court order applied:

Council Tax Attachment of Earnings Order (CTAEO): QuickBooks will not deduct a student loan when this order is in place.
Other court orders: Deduction of a student loan depends on whether the court order is classified as priority or non-priority. Priority orders take precedence over student loans, which may reduce or stop the student loan deduction. Non-priority orders allow student loans to be deducted as usual.

QuickBooks calculates student loan deductions automatically based on the order type and employee earnings. You can review and amend the amount if necessary. If the employee does not have a student loan, the system will ignore it.

QuickBooks Online Payroll Advanced