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ANSWER ID:22990

If an employee has a fine or owes money to the Department of Courts, the payments can be set up in Payroll.

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When should I set up this deduction? This should be used only when the appropriate letter from Department of Courts is received.
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title1. Set up the Court Deduction
  1. Go to the Maintenance command centre and click Maintain Employees.
  2. Click Select Employee.
  3. Click the applicable employee then click OK.
  4. Click the Compulsory Deductions tab.
  5. Under the Department of Courts heading, enter the following information as shown in the example below:
    1. The total amount of the fine in the Fines in Default field
    2. The Fines Number and/or a CID Number. These will appear on the letter received from the Department of Courts.
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title2. Set up the COURTS pay default
  1. Click the Pay Defaults/Totals tab for the applicable employee. You will note that the COURTS (Fines in Default) pay code will have been automatically added to the Employee's Pay Defaults.
  2. In the Rate column, enter the amount that is required to be deducted each pay. This will appear on the letter received from the Department of Courts. Note: The payments will continue to be deducted at this amount unless the net pay drops below the "protected net earnings" (normally 60% of the employee's net pay).
  3. Leave the Type set to Variable. This will ensure the payments will automatically stop being deducted when the total amount has been paid. See our example below.
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title3. Create the Pay and paying the Court Deductionpay
  1. Go to the Maintenance command centre and click Maintain Pay Codes.
  2. Select the COURTS (Fines in Default) pay code.
  3. Click the Other tab.
  4. Select the option Include in Direct Credit Schedule. You will note the bank account number required is already hard-coded into Payroll.
  5. Go to the Prepare Pays command centre and click Enter Pays.
  6. Process the employee's pay as you normally would.
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When will the deduction appear? The Court deduction will not appear until the employee's earnings are entered.
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<h2><i class="fa fa-comments"></i>&nbsp;&nbsp;FAQs</h2><br>
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titleHow will the Department of Courts know which employee the money is coming from?
The Department of Courts gets this information from the Fines Number and/or a CID Number entered in the employee's Compulsory Deductions tab. See Setting up the Court Deduction above. This is all the information they require.

For more information, see the following NZ legislation information:

http://www.legislation.govt.nz/act/public/1908/0089/latest/DLM1817656.html

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Payroll user guide

Setting up a deduction

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