e@syFile Error: "Code 4120 is mandatory if any value specified for Medical Scheme Contributions (4005) and the employee is 65 years or older" (born on 29 February)

You are importing the IRP5 files for either the Annual or Interim SARS Submission into e@syFile and the import fails.

• According to the system dates, the current year is not a leap year (ending on 28 February).
• The employee's birthday however is on 29 February and is turning 65 in this year.
• There is however no 29 February the current year calendar.
• Currently the system does not see this employee to be 65 within the tax year since the birthday is after 28 February, thus no additional tax credit calculates.
• There is no Validation error related to this on the IRP5/IT3a Report, and file creates to import into e@syFile. Only when importing the file, the error appears.

Work around:

If the employee will claim the Additional Tax Credit on Personal Income Tax Assessment

• Access the IRP5 export file, and add the code 4120, with zeroes in the file

If you want the Additional Tax Credit to calculate:

• Create a manual certificate with the correct values,

or

• Remove the ID number and change DOB to 28 February
• Ensure the tax credit appears on the MHS screen (amend beneficiaries and change back)
• Tax will recalculate, decide on how this will be treated if EMP201 has been submitted
• Import the file into SARS e@syFile
• Correct the employee DOB and ID number on the SARS e@syFile record
• Change the Nature of Person on the certificate to "A"