How To Fix 5G612 - EE + ER pension contributions exceeds &/& of annual allowance by & GBP

SAP Error Message - Details

• Message type: E = Error

• Message class: 5G - HR: Messages for Britain

• Message number: 612

• Message text: EE + ER pension contributions exceeds &/& of annual allowance by & GBP

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message 5G612 - EE + ER pension contributions exceeds &/& of annual allowance by & GBP ?

  The SAP error message "5G612 EE + ER pension contributions exceeds &/& of annual allowance by & GBP" typically relates to pension contributions exceeding the allowable limits set by tax regulations. This error is often encountered in payroll processing when the total employee (EE) and employer (ER) pension contributions surpass the annual allowance for tax relief.
  Cause:
  
  Excess Contributions: The combined contributions from both the employee and employer exceed the annual allowance limit set by tax authorities (e.g., HMRC in the UK).
  Incorrect Configuration: The system may not be configured correctly to account for the annual allowance limits.
  Data Entry Errors: Incorrect data entry for pension contributions in the payroll system can lead to this error.
  Changes in Legislation: Changes in pension regulations or tax laws may not be reflected in the system settings.
  
  Solution:
  
  Review Contributions: Check the total pension contributions for the employee and employer to ensure they are within the allowable limits.
  Adjust Contributions: If contributions exceed the limit, consider adjusting them to bring them within the allowable range. This may involve reducing future contributions or making adjustments to past contributions if possible.
  Configuration Check: Verify the configuration settings in SAP related to pension contributions and annual allowances. Ensure that the system is updated with the latest tax regulations.
  Consult Payroll Specialist: If unsure about how to proceed, consult with a payroll specialist or tax advisor to ensure compliance with regulations and to understand the implications of exceeding the annual allowance.
  System Update: Ensure that your SAP system is updated with the latest patches and configurations that reflect current tax laws and pension regulations.
  
  Related Information:
  
  Annual Allowance: The annual allowance is the maximum amount of tax-relieved contributions that can be made to a pension scheme in a tax year. Exceeding this limit may result in a tax charge.
  Pension Scheme Types: Different pension schemes may have different rules regarding contributions and allowances. Familiarize yourself with the specific rules applicable to your organization’s pension scheme.
  Tax Implications: Exceeding the annual allowance can lead to tax penalties for both the employee and employer, so it is crucial to monitor contributions closely.
  SAP Documentation: Refer to SAP documentation or support resources for specific guidance on handling pension contributions and related error messages.
  
  By addressing the cause of the error and implementing the suggested solutions, you should be able to resolve the issue and ensure compliance with pension contribution regulations.