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

SAP Error Message - Details

• 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. Look specifically at the income code assigned to the employee.
  Verify Income Code Validity: Cross-reference the income code with the list of valid income codes for the LCB application. Ensure that the code is appropriate for the employee's situation.
  Update Income Code: If the income code is incorrect, update it to a valid code that is compatible with the LCB application. This may involve consulting with your payroll or HR department to determine the correct code.
  Test Payroll Processing: After making changes, run a test payroll calculation to ensure that the error no longer occurs and that the LCB application is applied correctly.
  Consult Documentation: Refer to SAP documentation or the specific payroll processing guidelines for the Netherlands to ensure compliance with current regulations.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide updates regarding income codes and LCB applications.
  Payroll Configuration: Ensure that your payroll configuration settings are up to date and reflect any recent changes in tax laws or payroll processing requirements.
  Training and Support: If necessary, seek assistance from SAP support or consult with a payroll specialist who is familiar with Dutch payroll regulations.
  
  By following these steps, you should be able to resolve the HRPAYNL_EN264 error and ensure that the employee's payroll is processed correctly.