A DEA is an operation by which an employer is asked by the Department for Work and Pensions (DWP) to deducts benefit overpayments from an employee's pay and repay them directly. DEAs are usually requested in the form of a letter with instructions on how to pay the DWP.
We recommend to follow the 3 following steps to process a DEA 👇
Let your employee know
The first step will be to let your employee know they'll be deducted a benefit overpayment this month, so they don't have a bad surprise when they receive their pay for the month.
Deduct the DEA amount from the employee's pay in payroll
1. Go to the Payroll tab
2. Click on the current pay period
3. Scroll down to the team member you want to deduct the DEA for, then expand their row by clicking on it
4. Add the amount of the DEA as a net deduction.
💡 This will set up one deduction, for one month only. If the DEA requires multiple payments or you've agreed with the employee to break the payment into multiple chunks, you'll need to reproduce this process until the debt is settled.
Pay the Department for Work and Pensions
As a final step, you'll need to pay the DWP separately for the exact amount you've deducted from your employee's pay. Usually the back of the DEA's letter explain how to do this, however you can also find instructions on gov.uk's website.
A few things to keep in mind:
Pay the DEA no later than the 19th day of the month following the deduction made in payroll
If the employee leaves your company before the debt has been settled, you'll need to inform the DWP.