How To Fix 3W655 - The employee qualifies for a tax rebate based on their age

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 655

• Message text: The employee qualifies for a tax rebate based on their age

What causes this issue?

This employee is &V1& (or turns &V1& within this tax year) and
therefore qualifies for an additional tax rebate for employee's aged 65
and older.
You have not set the 'Age Letter submitted' indicator. The employee
will therefore not receive the tax rebate.

How to fix this error?

Verify whether the employee has submitted an age letter. If so, set the
indicator in the 'Age Letter submitted' field. Setting this indicator
makes the employee eligible for the additional tax rebate.
If the employee has not submitted an age letter, please notify the
employee to submit an age letter and therefore receive the additional
tax rebate.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 3W655 - The employee qualifies for a tax rebate based on their age ?

  The SAP error message 3W655 indicates that an employee qualifies for a tax rebate based on their age. This message typically arises in the context of payroll processing, particularly in countries where tax regulations provide for age-related tax benefits or rebates.
  Cause:
  
  Age Qualification: The employee's age falls within a range that qualifies them for a tax rebate according to local tax laws.
  Configuration Issues: There may be issues with the configuration of tax settings in the SAP system, such as incorrect age thresholds or missing tax rebate parameters.
  Employee Master Data: The employee's master data may not be correctly maintained, leading to the system not recognizing their eligibility for the rebate.
  
  Solution:
  
  Verify Employee Age: Check the employee's date of birth in their master data to ensure it is correctly entered and that they indeed qualify for the rebate.
  Review Tax Configuration: Ensure that the tax configuration in the SAP system is set up correctly to reflect the current tax laws regarding age-related rebates. This may involve checking the tax calculation schema and the relevant infotypes.
  Update Master Data: If the employee's age is incorrectly recorded, update their master data in the system.
  Consult Tax Regulations: Review local tax regulations to ensure that the system's configuration aligns with current laws regarding age-related tax rebates.
  Testing: After making any changes, run a test payroll to ensure that the error does not reoccur and that the tax rebate is applied correctly.
  
  Related Information:
  
  Infotypes: Check relevant infotypes such as IT0002 (Personal Data) and IT0014 (Recurring Payments/Deductions) to ensure all necessary information is correctly maintained.
  Tax Classes: Ensure that the employee is assigned to the correct tax class that allows for age-related rebates.
  SAP Notes: Look for any SAP Notes or updates that may address known issues related to tax calculations and age-related rebates.
  Documentation: Refer to the SAP documentation for payroll processing in your specific country to understand how age-related tax rebates are handled.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a payroll specialist familiar with local tax regulations.