How To Fix 3W654 - Employee does not qualify for the tax rebate of persons age 65 and over

SAP Error Message - Details

• Message type: E = Error

• Message class: 3W - HR: Message Class South Africa

• Message number: 654

• Message text: Employee does not qualify for the tax rebate of persons age 65 and over

Diagnosis
The 'Age Letter' indicator has been set. Based on system calculations
(from the employee's date of birth or the technical birth date), the
employee will be &V1& at the end of this tax year, and thereby
disqualified from the tax rebate for persons of age 65 and over.
What To Do
Verify that the age letter has been submitted. If not, deselect the
indicator in the 'Age Letter submitted' field.
If the employee is actually 65 or older, check the employee's date of
birth or the technical date of birth and make any corrections, if
necessary.
Note
An employee can submit their age letter at any time. Therefore, you
should set the 'Age Letter submitted' indicator when the employee
submits an age letter. Once the letter is received and the indicator is
set, the system will automatically give the employee the tax rebate as
of the first day of the tax year in which they turn 65.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 3W654 - Employee does not qualify for the tax rebate of persons age 65 and over ?

  The SAP error message 3W654 indicates that an employee does not qualify for the tax rebate available for persons aged 65 and over. This error typically arises in payroll processing when the system checks eligibility for tax benefits based on the employee's age and other criteria.
  Cause:
  
  Age Verification: The employee may not meet the age requirement for the tax rebate. The system checks the employee's date of birth against the current date to determine if they are 65 years or older.
  Tax Configuration: The tax settings in the SAP system may not be configured correctly, leading to incorrect eligibility checks.
  Employee Master Data: There may be missing or incorrect information in the employee's master data, such as the date of birth or tax classification.
  Country-Specific Regulations: Different countries have specific regulations regarding tax rebates, and the employee may not meet the criteria set by local tax laws.
  
  Solution:
  
  Verify Employee Age: Check the employee's date of birth in the master data to ensure they are indeed 65 years or older.
  Review Tax Configuration: Ensure that the tax settings in the SAP system are correctly configured to allow for the tax rebate for eligible employees.
  Update Master Data: If there are discrepancies in the employee's master data, correct them. This may include updating the date of birth or tax classification.
  Consult Tax Regulations: Review the local tax regulations to ensure that the employee meets all necessary criteria for the tax rebate.
  Run Payroll Simulation: After making any changes, run a payroll simulation to check if the error persists.
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or updates related to this error message. SAP frequently releases notes that address specific error messages and provide guidance on resolution.
  Documentation: Refer to SAP documentation regarding payroll processing and tax calculations for your specific country to understand the eligibility criteria for tax rebates.
  Support: If the issue persists after checking the above points, consider reaching out to your SAP support team or consulting with a payroll specialist who is familiar with the specific tax regulations applicable to your organization.
  
  By following these steps, you should be able to identify the cause of the error and implement the necessary solutions to resolve it.