How To Fix RP175 - Flat-rate tax not allowed in tax class VI!

SAP Error Message - Details

• Message type: E = Error

• Message class: RP - Error Messages for Infotype Module Pools

• Message number: 175

• Message text: Flat-rate tax not allowed in tax class VI!

What causes this issue?

Germany only

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?

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message RP175 - Flat-rate tax not allowed in tax class VI! ?

  The SAP error message "RP175 Flat-rate tax not allowed in tax class VI" typically occurs in the context of payroll processing when the system encounters an issue with the tax classification of an employee or a payroll item. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  Tax Class VI: In Germany, tax class VI is used for employees who have multiple jobs and are not entitled to any tax allowances. This tax class does not allow for flat-rate taxation.
  Flat-rate Tax: The flat-rate tax is a simplified tax calculation method that is not applicable to employees classified under tax class VI.
  Payroll Configuration: The payroll configuration may incorrectly assign a flat-rate tax to an employee who is in tax class VI.
  
  Solution:
  
  Check Employee Tax Class: Verify the tax class assigned to the employee in the master data. Ensure that the employee is correctly classified and that tax class VI is appropriate for their situation.
  Review Payroll Configuration: Check the payroll configuration settings to ensure that flat-rate tax is not being applied to employees in tax class VI. This may involve reviewing the tax calculation rules in the payroll schema.
  Adjust Tax Calculation: If the employee should not be subject to flat-rate tax, adjust the payroll settings to remove any flat-rate tax entries for that employee.
  Consult with Payroll Specialist: If you are unsure about the correct settings or classifications, consult with a payroll specialist or SAP consultant who can provide guidance based on the specific configuration of your SAP system.
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any updates or patches related to this error message. SAP frequently releases notes that address specific issues or provide guidance on configuration.
  Documentation: Review SAP documentation related to payroll processing and tax classifications to ensure compliance with local tax laws and regulations.
  Testing: After making changes, perform a test run of the payroll to ensure that the error does not reoccur and that the payroll calculations are correct.
  
  By addressing the underlying cause of the error and ensuring that the payroll configuration aligns with the tax regulations, you can resolve the issue effectively.