ERROR: 'Employment Tax Incentive indicator is 'Y' and Nature of person (3020) ...'

You've generated the IRP5 files from payroll and importing the file into the South African Revenue Services (SARS) e@syFile™ Employer software application. The error appears on the Import Payroll File Log on the SARS software.

The error indicates an employee qualified for the Employment Tax Incentive (ETI) during the submission period. The ‘nature of person’ on the tax certificate doesn’t allow ETI, so the record must not show any ETI amounts.

The only persons allowed to qualify for ETI:

• South African citizen with valid ID number
• Asylum Seekers with valid work permit
• Refugees with valid refugee number

For details on the person types: 'Nature of person' on an employee tax certificate

Employee qualified for ETI in error

ETI calculates on a record based on the qualifying factors. You've changed details on the record and the ETI history amounts remain on the record.

To remove ETI amounts, you'll need to do an ETI take-on to remove any incorrectly calculated amounts.

The ETI Validation Utility allows you to export the employee's ETI details. You can remove the amounts in Excel, create a take-on file, and import the ETI corrections to your payroll.

• Follow this article to use the utility: ETI Validation Utility

Employee qualifies for ETI

You'll need to correct the record's 'nature of person' to allow ETI qualification.

1. From the Main Menu, go to Employee, then select Change Employee.
2. Select the employee from the list and click Continue.
3. Confirm if the employee is a South African citizen, a refugee or asylum seeker.
4. Ensure to capture the identification details:
   • South African employees - ID number on Personal Details tab
   • Asylum Seeker - valid work permit number on Employment Tax Incentive tab
   • Refugees - valid work refugee number on Employment Tax Incentive tab
   • Tick Valid ID Document on Employment Tax Incentive tab

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