ERROR: 'There is a company contribution on the tax line'

You're generating the IRP5 tax certificate files to submit to the South African Revenue Service (SARS).

The export process stops as there are validation errors or outstanding mandatory information. The report generates a list of all issues to review.

In this instance, the employee record includes a tax amount as a company contribution.

A tax value exists on the Company Contribution (CC) Tax line. Tax can only be a deduction. 

Step 1: Determine the reason why tax is a company contribution

• Employee tax can only be a deduction on a payslip
• You'll need to investigate why the amount appears as a company contribution

Step 2: Remove the tax value from the CC Tax line

1. Access the employee’s record and remove the tax value from the Company Contribution tab:
   • For mid-year submissions and the payroll is already in September, adjustment the amount on the History Screen
   • For year-end submissions, process a Year-to-Date (YTD) correction on the February payslip

Step 3: Check for previous declarations

• If you declared the tax value on the EMP201, removing it completely will cause differences
• If you captured the amount as a company contribution, you'll need to recapture it as a deduction