How To Fix HRPAYNL_EN264 - Employee has income code &1 and LCB application, which is not allowed

HRPAYNL_EN264 - Overview

• Message type: E = Error

• Message class: HRPAYNL_EN - Errormessage for NL Payroll

• Message number: 264

• Message text: Employee has income code &1 and LCB application, which is not allowed

What causes this issue?

You can only apply for the LCB when the income code has following
values: 11, 13, 15 or 31.

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?

Check the employee data.
Either the income code in the infotype <ZK>Fiscal Data NL</> (0060), or
the LCB indicator in the infotype <ZK>Social Insurance NL</> (0059) is
incorrect.

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 HRPAYNL_EN264 - Employee has income code &1 and LCB application, which is not allowed ?

  The SAP error message HRPAYNL_EN264 indicates that there is an issue with the income code assigned to an employee in the context of the LCB (Loonheffingskorting, or Wage Tax Reduction) application in the Netherlands. This error typically arises when the income code used for the employee is not compatible with the LCB application, which is designed to apply specific tax reductions based on the employee's income situation.
  
  Cause:
  
  Incorrect Income Code: The employee has been assigned an income code that is not valid for the LCB application. This could be due to a misconfiguration in the employee's payroll data.
  Regulatory Changes: Changes in tax regulations or payroll processing rules may have rendered the current income code incompatible with the LCB application.
  Data Entry Errors: Manual entry errors during the setup of the employee's payroll information can lead to incorrect income codes being assigned.
  
  
  Solution:
  
  Review Employee Data: Check the employee's payroll information in the SAP system.