How To Fix 5U254 - Additional withholding must be < or = 9999 for FED or 999 for others

SAP Error Message - Details

• Message type: E = Error

• Message class: 5U - HR US: Messages

• Message number: 254

• Message text: Additional withholding must be < or = 9999 for FED or 999 for others

What causes this issue?

The additional withholding amounts are restricted by ADP

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?

Reduce the additional withholding amount to $9999 or less for Federal
and $999 or less for other authorities.

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 5U254 - Additional withholding must be < or = 9999 for FED or 999 for others ?

  The SAP error message 5U254 indicates that there is an issue with the additional withholding amounts specified in the payroll or tax configuration. This error typically arises when the additional withholding amount exceeds the allowed limits set by the system for federal or state taxes.
  Cause:
  
  Exceeding Limits: The additional withholding amount for federal taxes is limited to a maximum of 9999, while for other taxes, it is limited to 999. If the amount entered exceeds these limits, the error will be triggered.
  Incorrect Configuration: The payroll or tax configuration may not be set up correctly, leading to incorrect values being processed.
  Data Entry Error: There may have been a mistake in entering the additional withholding amounts in the employee's payroll data.
  
  Solution:
  
  Check Additional Withholding Amounts: Review the additional withholding amounts entered for the employee in the payroll system. Ensure that they do not exceed the specified limits (9999 for federal and 999 for others).
  Adjust Values: If the amounts are too high, adjust them to be within the allowed limits. This may involve reducing the additional withholding amount or splitting it across multiple pay periods if necessary.
  Review Configuration: If the error persists, check the payroll configuration settings to ensure that they are set up correctly according to the latest tax regulations.
  Consult Documentation: Refer to SAP documentation or your organization's payroll guidelines for specific instructions on how to handle additional withholdings.
  Test Changes: After making adjustments, run a test payroll to ensure that the error no longer occurs and that the withholding amounts are processed correctly.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide updates on tax withholding configurations.
  Tax Regulations: Stay updated on federal and state tax regulations, as these can change and may affect withholding limits.
  User Roles: Ensure that the personnel responsible for payroll processing have the necessary access and training to make adjustments to withholding amounts.
  
  If the issue continues after following these steps, it may be beneficial to consult with your SAP support team or a payroll specialist for further assistance.