How To Fix HRPAYCH01020 - Checking rule C13: Withholding tax with start date '01.01' must be >= 0

SAP Error Message - Details

• Message type: E = Error

• Message class: HRPAYCH01 - Messages for Payroll Switzerland

• Message number: 020

• Message text: Checking rule C13: Withholding tax with start date '01.01' must be >= 0

What causes this issue?

An overall list (LR) that begins on January 1 of a year must not show
negative tax retention.

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?

Create a correction list (LC) to correct a previous tax period.

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 HRPAYCH01020 - Checking rule C13: Withholding tax with start date '01.01' must be >= 0 ?

  The SAP error message HRPAYCH01020, specifically related to the checking rule C13, indicates an issue with the withholding tax configuration in the payroll process. The error message states that the withholding tax with a start date of '01.01' must be greater than or equal to 0. This typically means that there is a problem with the withholding tax settings for an employee or a payroll area.
  Cause:
  
  Incorrect Configuration: The withholding tax settings for the employee or payroll area may not be configured correctly. This could include incorrect tax rates or start dates that do not align with the expected values.
  Missing Data: There may be missing or incomplete data in the employee's master data or payroll data that is required for the calculation of withholding tax.
  Invalid Start Date: The start date for the withholding tax may be set incorrectly, possibly indicating a date that is not valid or does not meet the required criteria.
  
  Solution:
  
  Check Employee Master Data: Review the employee's master data in the SAP system to ensure that all relevant fields related to withholding tax are filled out correctly. This includes checking the tax type, tax class, and any other relevant fields.
  Review Tax Configuration: Go to the configuration settings for withholding tax in the SAP system. Ensure that the tax rates and start dates are set correctly and that they comply with the legal requirements.
  Adjust Start Date: If the start date for the withholding tax is set incorrectly, update it to a valid date that meets the criteria (i.e., >= 0).
  Run Payroll Simulation: After making the necessary adjustments, run a payroll simulation to check if the error persists. This will help confirm that the changes have resolved the issue.
  Consult Documentation: Refer to SAP documentation or help notes related to payroll and withholding tax for additional guidance on configuration and troubleshooting.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on withholding tax configuration.
  Payroll Processing: Ensure that you are familiar with the payroll processing steps in SAP, as understanding the flow can help identify where the issue may be occurring.
  Legal Requirements: Be aware of the legal requirements for withholding tax in your country or region, as these can impact how the withholding tax is configured in SAP.
  
  If the issue persists after following these steps, it may be beneficial to consult with an SAP HR consultant or your internal SAP support team for further assistance.