How To Fix HRPAYUS_BSI014 - Basic Local Reciprocity is activated in TaxFactory client

SAP Error Message - Details

• Message type: E = Error

• Message class: HRPAYUS_BSI - Payroll US BSI Interface

• Message number: 014

• Message text: Basic Local Reciprocity is activated in TaxFactory client

What causes this issue?

During payroll execution, it was detected that Basic Local Reciprocity
is enabled in the BSI TaxFactory client.

System Response

<ZH>Advanced Local Reciprocity </>option should be used instead of
<ZH>Basic Local Reciprocity </>as of January 01, 2019. As a consequence,
the system warns you about its usage in TaxFactory client.

How to fix this error?

You must evaluate the impact of using Basic Local Reciprocity in your
payroll scenarios. For more information, consult <ZH>SAP Notes 2685179
</>and <ZH>2667916.</>

Procedure for System Administrators

In case you do not want to have this message displayed, you can change
the configuration option <ZH>BSI01</> in <ZH>V_T5F99K2</>.

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 HRPAYUS_BSI014 - Basic Local Reciprocity is activated in TaxFactory client ?

  The SAP error message HRPAYUS_BSI014 indicates that "Basic Local Reciprocity is activated in TaxFactory client." This error typically arises in the context of payroll processing when there are issues related to tax calculations, particularly in the United States where local taxes can vary significantly.
  Cause:
  The error is triggered when the TaxFactory client is configured to use Basic Local Reciprocity, which allows for the sharing of local tax credits between jurisdictions. This can lead to complications if the payroll system is not set up correctly to handle these local tax rules or if there are inconsistencies in the employee's tax data.
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Tax Configuration:
  
  Verify the configuration settings in the TaxFactory client. Ensure that the Basic Local Reciprocity settings are appropriate for your organization’s payroll requirements.
  Review the local tax jurisdictions involved and confirm that they are set up correctly in the SAP system.
  
  
  
  Review Employee Tax Data:
  
  Check the employee's tax information in the SAP system. Ensure that the local tax codes and reciprocity agreements are correctly assigned.
  Make sure that the employee's work and residence locations are accurately reflected in their tax records.
  
  
  
  Update Tax Factory:
  
  If there have been recent changes to local tax laws or regulations, ensure that your TaxFactory software is up to date with the latest tax tables and configurations.
  
  
  
  Consult Documentation:
  
  Refer to the SAP documentation or the TaxFactory user guide for specific instructions on handling local reciprocity settings.
  
  
  
  Contact Support:
  
  If the issue persists after checking the above items, consider reaching out to SAP support or your TaxFactory provider for further assistance. They may have additional insights or updates that can help resolve the issue.
  
  
  
  Related Information:
  
  Local Reciprocity: This refers to agreements between local jurisdictions that allow residents to receive tax credits for taxes paid to other jurisdictions. Understanding these agreements is crucial for accurate payroll processing.
  TaxFactory: This is a tax calculation software used in conjunction with SAP to manage complex tax calculations, including local, state, and federal taxes in the U.S.
  SAP Payroll Configuration: Familiarity with SAP payroll configuration settings is essential for troubleshooting tax-related issues. This includes understanding how to set up tax codes, jurisdiction codes, and employee tax data.
  
  By following these steps and understanding the context of the error, you should be able to resolve the HRPAYUS_BSI014 error effectively.