How To Fix U1026 - Employee exempt from tax reporting due to transfer out

SAP Error Message - Details

• Message type: E = Error

• Message class: U1 - Tax reporter interface

• Message number: 026

• Message text: Employee exempt from tax reporting due to transfer out

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

Unfortunately, there isn't any extra information in this error notice.

What else can you do?

First, use our AnswerBot below to get a possible cause and solution (requires a premium subscription).

Also, review the in-depth Common Questions & Answers listed below; you could discover a solution there or be able to connect with others who have faced similar challenges.

You can also try searching the SAP support portal (support.sap.com) but you need a special user ID to access it. It is possible that an SAP support note exists that provides additional details about the mistake or even steps for fixing it.

Smart SAP Assistant

• What is the cause and solution for SAP error message U1026 - Employee exempt from tax reporting due to transfer out ?

  The SAP error message U1026, "Employee exempt from tax reporting due to transfer out," typically occurs in the context of payroll processing when an employee has been transferred out of a specific tax jurisdiction or has been marked as exempt from tax reporting for some reason. This can happen in various scenarios, such as when an employee is moving to a different location or when there are specific tax exemptions applicable to their situation.
  Cause:
  
  Employee Transfer: The employee has been transferred to a different location or company code where different tax rules apply.
  Tax Exemption: The employee may have been marked as exempt from tax reporting due to specific criteria, such as being on a leave of absence, being a non-resident, or other tax-related exemptions.
  Configuration Issues: There may be issues with the configuration of the payroll system, such as incorrect tax settings or missing data related to the employee's new location or status.
  
  Solution:
  
  Check Employee Status: Verify the employee's current status in the system. Ensure that their transfer has been processed correctly and that they are assigned to the correct company code and tax jurisdiction.
  Review Tax Exemptions: Check if the employee is indeed exempt from tax reporting. If this is not intended, update their tax status accordingly.
  Update Payroll Data: Ensure that all relevant payroll data, including tax information, is updated in the system. This may involve updating the employee's master data or payroll infotypes.
  Consult with Payroll Team: If the issue persists, consult with your payroll or HR team to ensure that all necessary steps have been taken to process the employee's transfer and tax status correctly.
  System Configuration: If there are configuration issues, work with your SAP technical team to review and correct any settings related to tax reporting and employee transfers.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error message or provide guidance on handling employee transfers and tax reporting.
  Documentation: Review SAP documentation related to payroll processing, employee transfers, and tax reporting to ensure compliance with local regulations.
  Testing: After making changes, conduct thorough testing to ensure that the error does not reoccur and that payroll processing is functioning as expected.
  
  If you continue to experience issues, it may be beneficial to reach out to SAP support or your internal IT team for further assistance.