How To Fix HRPAYUS_BSI016 - Basic Local Reciprocity is not recommended to use

SAP Error Message - Details

• Message type: E = Error

• Message class: HRPAYUS_BSI - Payroll US BSI Interface

• Message number: 016

• Message text: Basic Local Reciprocity is not recommended to use

What causes this issue?

You are attempting to set the <LS>Courtesy Withholding </>option as
<LS>Allowed with Basic Local Reciprocity</>.

System Response

<LS>Advanced Local Reciprocity </>option must be used instead of
<LS>Basic Local Reciprocity </>as of January 01, 2019, as suggested by
BSI since TaxFactory version 10.0.e.1. For more information, consult
<ZH>SAP Notes 2685179 </>and <ZH>2667916</>.

How to fix this error?

Select another valid option.

Procedure for System Administrators

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_BSI016 - Basic Local Reciprocity is not recommended to use ?

  The SAP error message HRPAYUS_BSI016 indicates that the Basic Local Reciprocity (BLR) feature is not recommended for use in the context of payroll processing. This error typically arises in the U.S. payroll module when there are issues related to the configuration of local tax calculations.
  Cause:
  The error can occur due to several reasons, including:
  
  
  Configuration Issues: The Basic Local Reciprocity feature may not be properly configured in the system. This can happen if the local tax jurisdictions are not set up correctly or if the reciprocity agreements between states are not defined.
  
  
  Incompatibility: The use of Basic Local Reciprocity may not be compatible with the current payroll setup or the specific requirements of the organization.
  
  
  Regulatory Changes: Changes in tax laws or regulations may render the use of Basic Local Reciprocity obsolete or not recommended.
  
  
  Solution:
  To resolve the HRPAYUS_BSI016 error, consider the following steps:
  
  
  Review Configuration: Check the configuration settings for local taxes in the SAP system. Ensure that the Basic Local Reciprocity feature is set up correctly according to the organization's payroll requirements.
  
  
  Consult Documentation: Refer to SAP documentation or notes related to the Basic Local Reciprocity feature. This may provide insights into best practices and any updates or changes that need to be made.
  
  
  Evaluate Necessity: Determine if the Basic Local Reciprocity feature is necessary for your payroll processing. If it is not required, consider disabling it to avoid the error.
  
  
  Update Tax Codes: Ensure that the tax codes used for local taxes are up to date and reflect the current tax regulations.
  
  
  Engage with SAP Support: If the issue persists, consider reaching out to SAP support for assistance. They can provide guidance based on the specific configuration and requirements of your organization.
  
  
  Related Information:
  
  
  Basic Local Reciprocity: This is a tax arrangement that allows employees who work in one locality but live in another to pay taxes only to their home locality. However, it may not be suitable for all organizations or jurisdictions.
  
  
  SAP Notes: Check for any relevant SAP Notes that may address this error or provide updates on the Basic Local Reciprocity feature.
  
  
  Payroll Processing: Understanding the broader context of payroll processing in SAP, including local tax calculations and compliance, can help in troubleshooting related issues.
  
  
  By following these steps and considering the related information, you should be able to address the HRPAYUS_BSI016 error effectively.