How To Fix HRPAYDEST604 - Additional Information about Tax Calculation with Permanency

SAP Error Message - Details

• Message type: E = Error

• Message class: HRPAYDEST - Message Class: Taxes Germany

• Message number: 604

• Message text: Additional Information about Tax Calculation with Permanency

&INFO&
For the tax calculation with permanency, the regular employment tax
according to the estimated annual earned income is calculated using the
year table. The estimated annual earned income is determined by
extrapolating the income for the calendar year from the regular income
earned thus far in the year.
The determined annual employment tax (1) is then calculated
proportionally for the previous payroll period in this year (2). The emp
loyment tax for the current period (3) is the difference between the
proportional annual emploxment tax (2) and the tax incurred up to the
previous period.
The other calculations depend on the characteristics of the selected tax
procedure:
If the "As If principle" is used, then instead of the regular taxes that
have actually been incurred up to the payroll period, those taxes are
taken into account that would have been incurred in the permanency
procedure with the currently valid taxation features (4).
If capping of the month table occurs, then for the permanent annual tax
declaration for the payroll period, those taxes are withheld that would
result according to the calculation with the month table (5).
Depending on the tax procedure, any negative taxes calculated in the
permanent annual employment tax declaration are indeed reimbursed.

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message HRPAYDEST604 - Additional Information about Tax Calculation with Permanency ?

  The SAP error message HRPAYDEST604 typically relates to issues in the tax calculation process within the payroll module, particularly concerning the permanency of tax-related data for employees. This error can arise in various scenarios, such as when there are inconsistencies in the employee's tax data or when the system is unable to determine the correct tax calculation parameters.
  Cause:
  
  Inconsistent Tax Data: The employee's tax information may not be correctly maintained in the system, leading to discrepancies during payroll processing.
  Missing Tax Configuration: The tax calculation configuration for the specific country or region may not be set up correctly.
  Permanency Issues: The error may indicate that the system is unable to determine whether the tax data should be treated as permanent or temporary, which can affect how taxes are calculated.
  Changes in Tax Regulations: Recent changes in tax laws or regulations that have not been updated in the SAP system can also lead to this error.
  
  Solution:
  
  Check Employee Tax Data: Review the employee's tax information in the system. Ensure that all relevant fields (e.g., tax class, exemptions, etc.) are filled out correctly.
  Review Tax Configuration: Verify that the tax calculation configuration is correctly set up for the relevant country or region. This includes checking the tax types, rates, and any specific rules that apply.
  Update Permanency Settings: If the error is related to the permanency of tax data, ensure that the settings for tax data are correctly defined in the system. This may involve checking the infotypes related to tax data (e.g., IT 0012 for tax data).
  Consult Documentation: Refer to SAP documentation or notes related to tax calculation and permanency issues. There may be specific notes or patches available that address this error.
  Testing: After making changes, run a test payroll to see if the error persists. This will help confirm whether the issue has been resolved.
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or updates related to HR payroll and tax calculation. SAP frequently releases notes that address specific errors and provide guidance on how to resolve them.
  SAP Community: Engage with the SAP Community forums where other users may have encountered similar issues. You can find discussions, solutions, and best practices shared by other SAP professionals.
  Documentation: Review the SAP Help Portal for detailed documentation on payroll processing and tax calculation, which can provide insights into how the system handles these processes.
  
  If the issue persists after following these steps, it may be necessary to involve your SAP support team or a consultant with expertise in SAP HR and payroll to conduct a deeper analysis.