How To Fix HRPAYDEST806 - A tax exemption for children is not possible for tax bracket 5 or 6

SAP Error Message - Details

• Message type: E = Error

• Message class: HRPAYDEST - Message Class: Taxes Germany

• Message number: 806

• Message text: A tax exemption for children is not possible for tax bracket 5 or 6

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message HRPAYDEST806 - A tax exemption for children is not possible for tax bracket 5 or 6 ?

  The SAP error message HRPAYDEST806 indicates that a tax exemption for children cannot be applied for employees who fall under tax brackets 5 or 6. This is a common issue in payroll processing within the SAP HR module, particularly in countries where tax brackets are defined and exemptions can be claimed based on the number of children.
  Cause:
  
  Tax Bracket Restrictions: In many tax systems, certain tax exemptions or allowances for children are only applicable to lower tax brackets. Tax brackets 5 and 6 are typically higher income brackets where such exemptions are not allowed.
  Configuration Issues: The payroll configuration in SAP may not be set up correctly to handle exemptions for different tax brackets.
  Employee Master Data: The employee's master data may not be correctly maintained, leading to incorrect tax bracket assignments or exemptions.
  
  Solution:
  
  Review Tax Bracket Assignment: Check the employee's tax bracket assignment in their master data. Ensure that they are correctly classified according to their income and applicable tax laws.
  Verify Exemption Eligibility: Confirm whether the employee is eligible for child tax exemptions based on local tax regulations. If they are in tax brackets 5 or 6, they may not qualify for such exemptions.
  Adjust Payroll Configuration: If necessary, consult with your SAP HR configuration team to review the payroll settings related to tax exemptions. Ensure that the system is configured to reflect the correct rules for tax brackets and exemptions.
  Consult Tax Regulations: Review local tax laws to ensure compliance and understand the rules regarding child tax exemptions for different income levels.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide updates on tax handling in your version of SAP.
  Documentation: Refer to the SAP HR documentation for guidelines on payroll processing and tax calculations.
  Local Tax Authority: Consult with local tax authorities or a tax advisor to ensure that the payroll system aligns with current tax laws and regulations.
  
  By addressing the above points, you should be able to resolve the HRPAYDEST806 error and ensure that payroll processing is compliant with tax regulations.