How To Fix HRPAYCH_ELM40034 - No withholding tax rate defined (IT0038).

SAP Error Message - Details

• Message type: E = Error

• Message class: HRPAYCH_ELM40 - Messages for Withholding Tax

• Message number: 034

• Message text: No withholding tax rate defined (IT0038).

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

Unfortunately, there isn't any extra information in this error notice.

What else can you do?

First, use our AnswerBot below to get a possible cause and solution (requires a premium subscription).

Also, review the in-depth Common Questions & Answers listed below; you could discover a solution there or be able to connect with others who have faced similar challenges.

You can also try searching the SAP support portal (support.sap.com) but you need a special user ID to access it. It is possible that an SAP support note exists that provides additional details about the mistake or even steps for fixing it.

Smart SAP Assistant

• What is the cause and solution for SAP error message HRPAYCH_ELM40034 - No withholding tax rate defined (IT0038). ?

  The SAP error message HRPAYCH_ELM40034, which states "No withholding tax rate defined (IT0038)," typically occurs in the context of payroll processing when the system is unable to find a defined withholding tax rate for an employee in the relevant infotype (IT0038 - Withholding Tax).
  Cause:
  
  Missing Configuration: The withholding tax rate may not be configured in the system for the relevant tax type or jurisdiction.
  Employee Data: The employee's infotype 0038 may not have been maintained correctly, or the necessary data may be missing.
  Tax Type: The specific tax type that is being referenced may not have a defined rate in the system.
  Country-Specific Settings: Different countries have different requirements for withholding tax, and the necessary settings may not be in place for the specific country.
  
  Solution:
  
  
  Check Infotype 0038: 
  
  Go to the employee's master data and check infotype 0038 (Withholding Tax). Ensure that the relevant fields are filled out correctly, including the tax type and any other necessary information.
  
  
  
  Define Withholding Tax Rates:
  
  Navigate to the configuration settings for withholding tax rates in the SAP system. This is usually found under the following path:
  
  SPRO > Personnel Management > Payroll > Payroll for Country > Withholding Tax > Define Withholding Tax Types and Rates.
  
  
  Ensure that the withholding tax rates are defined for the relevant tax types and that they are active.
  
  
  
  Check Tax Type Configuration:
  
  Verify that the tax type used in infotype 0038 is correctly configured in the system. This includes checking if it is linked to the correct tax jurisdiction and if the rates are set up properly.
  
  
  
  Country-Specific Configuration:
  
  If you are working with a specific country, ensure that all country-specific settings related to payroll and withholding tax are correctly configured.
  
  
  
  Testing:
  
  After making the necessary changes, run a test payroll for the employee to see if the error persists.
  
  
  
  Related Information:
  
  Documentation: Refer to SAP Help documentation for detailed steps on configuring withholding tax rates and managing infotypes.
  Transaction Codes: You may use transaction codes like PA30 (Maintain HR Master Data) to check infotype data and SPRO for configuration settings.
  Support: If the issue persists after checking the above points, consider reaching out to your SAP support team or consulting with an SAP HR expert for further assistance.
  
  By following these steps, you should be able to resolve the error HRPAYCH_ELM40034 and ensure that the withholding tax rates are correctly applied in payroll processing.