How To Fix 5G710 - Employee National Insurance arrears remain at end of tax year

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 710

• Message text: Employee National Insurance arrears remain at end of tax year

What causes this issue?

Employee National Insurance Contributions (NICs) arrears remain at the
end of the current tax year. If these NIC arrears originated in the
current tax year, they can still be re-claimed from the employee in the
next tax year.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 5G710 - Employee National Insurance arrears remain at end of tax year ?

  The SAP error message 5G710, which indicates that "Employee National Insurance arrears remain at end of tax year," typically arises in the context of payroll processing in the UK. This error suggests that there are outstanding National Insurance (NI) contributions for an employee that have not been fully paid or resolved by the end of the tax year.
  Cause:
  
  Unresolved Arrears: The employee has National Insurance arrears that have not been cleared by the end of the tax year.
  Incorrect Payroll Configuration: There may be issues with how payroll is configured, leading to incorrect calculations of NI contributions.
  Data Entry Errors: Mistakes in entering employee data, such as incorrect NI numbers or contribution rates.
  Timing Issues: Payments or adjustments made late in the tax year may not have been processed in time to clear the arrears.
  
  Solution:
  
  Review Employee Records: Check the employee's payroll records to identify the source of the arrears. Look for any discrepancies in NI contributions.
  Adjust Payroll Entries: If there are errors in the payroll entries, make the necessary adjustments to ensure that the correct amounts are being deducted and reported.
  Process Payments: If there are outstanding payments, ensure that they are processed correctly. This may involve making additional payments to clear the arrears.
  Run Year-End Processing: After resolving the arrears, run the year-end payroll processing again to ensure that all contributions are correctly reported and that the error message is cleared.
  Consult Documentation: Refer to SAP documentation or your organization's payroll guidelines for specific steps related to handling NI contributions and year-end processing.
  Seek Support: If the issue persists, consider reaching out to your SAP support team or a payroll specialist for further assistance.
  
  Related Information:
  
  National Insurance Contributions: In the UK, National Insurance contributions are mandatory payments made by employees and employers to qualify for certain benefits and the State Pension.
  Tax Year: The UK tax year runs from April 6 to April 5 of the following year. It is important to ensure that all payroll records are accurate and complete by the end of this period.
  SAP Payroll Configuration: Ensure that your SAP payroll system is correctly configured for handling NI contributions, including the correct rates and thresholds.
  
  By addressing the underlying issues causing the arrears and ensuring proper payroll processing, you should be able to resolve the 5G710 error message.