How To Fix 5G712 - Employee NI arrears from previous year remain at end of tax year

5G712 - Overview

• Message type: E = Error

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

• Message number: 712

• Message text: Employee NI arrears from previous year remain at end of tax year

What causes this issue?

Employee National Insurance arrears which originated in the previous tax
year remain at the end of the current tax year. These arrears can no
longer be claimed back from the employee.
Under current NI rules, employees can carry forward NI arrears to the
next tax year only once. If an employee's arrears are not fully deducted
by the end of the subsequent tax year, they cannot be carried forward
any further and become the liability of the employer.
See also
<DS:DE.P08_ARPRY>National Insurance Arrears</>

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 5G712 - Employee NI arrears from previous year remain at end of tax year ?

  The SAP error message 5G712, which states "Employee NI arrears from previous year remain at end of tax year," typically relates to issues with National Insurance (NI) contributions in the UK payroll system. This error indicates that there are outstanding National Insurance arrears for an employee that have not been resolved by the end of the tax year.
  
  Cause:
  
  Unresolved Arrears: The employee has National Insurance arrears from the previous tax year that have not been cleared.
  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 payroll data, such as incorrect NI codes or contribution amounts.
  Timing Issues: If the payroll processing for the previous year was not completed correctly or on time, it could lead to outstanding arrears.
  
  
  Solution:
  
  Review Employee Records: Check the employee's payroll records for the previous tax year to identify any discrepancies or outstanding amounts.
  Clear Arrears: