How To Fix HRPAYDEST861 - In tax class 2, child tax exemptions are expected.

SAP Error Message - Details

• Message type: E = Error

• Message class: HRPAYDEST - Message Class: Taxes Germany

• Message number: 861

• Message text: In tax class 2, child tax exemptions are expected.

What causes this issue?

To be in tax class 2, you have to have at least one minor child. You
must enter a value for tax exemptions for children. In certain cases, a
tax exemption for children may not have to exist.

System Response

The system issues a warning message to show that the combination of tax
class 2 with no tax exemptions for children is usually a result of an
input error.

How to fix this error?

Ensure that the entry you made is correct and if so, ignore the warning
message.

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 HRPAYDEST861 - In tax class 2, child tax exemptions are expected. ?

  The SAP error message HRPAYDEST861 typically occurs in the context of payroll processing in the SAP Human Capital Management (HCM) module, specifically when dealing with tax calculations for employees. This error indicates that there is an issue with the configuration or data related to tax class 2, which is generally used for married employees or those with dependents.
  Cause:
  The error message HRPAYDEST861 arises when the system expects child tax exemptions to be defined for an employee classified under tax class 2, but these exemptions are either missing or incorrectly configured. This can happen due to:
  
  Missing Data: The employee's master data may not have the necessary child tax exemption information filled out.
  Incorrect Configuration: The tax configuration in the system may not align with the employee's tax class and exemptions.
  Data Entry Errors: There may be errors in the data entry for the employee's tax information.
  
  Solution:
  To resolve the HRPAYDEST861 error, you can take the following steps:
  
  
  Check Employee Master Data:
  
  Go to the employee's master data (transaction code PA30).
  Verify that the child tax exemptions are correctly entered in the relevant infotype (usually Infotype 0207 for tax data).
  Ensure that the employee is correctly assigned to tax class 2.
  
  
  
  Review Tax Configuration:
  
  Check the tax configuration settings in the system to ensure that they are set up correctly for tax class 2.
  Ensure that the system is configured to recognize child tax exemptions for employees in tax class 2.
  
  
  
  Update Tax Exemptions:
  
  If the employee has children and is eligible for tax exemptions, ensure that the exemptions are entered correctly in the system.
  If the employee does not have children or is not eligible for exemptions, consider changing their tax class if appropriate.
  
  
  
  Consult Payroll Documentation:
  
  Review the payroll documentation and guidelines specific to your organization to ensure compliance with local tax laws and regulations.
  
  
  
  Run Payroll Simulation:
  
  After making the necessary changes, run a payroll simulation to check if the error persists.
  
  
  
  Contact SAP Support:
  
  If the issue continues after verifying the above steps, consider reaching out to SAP support for further assistance.
  
  
  
  Related Information:
  
  Tax Classes: In many countries, tax classes are used to determine the tax rate and exemptions applicable to an employee based on their marital status and dependents.
  Infotypes: In SAP HCM, infotypes are used to store specific types of employee data. Infotype 0207 is commonly used for tax-related information.
  Payroll Processing: Understanding the payroll processing cycle and how tax calculations are performed in SAP can help in troubleshooting similar issues.
  
  By following these steps, you should be able to identify and resolve the HRPAYDEST861 error effectively.