Validation Error: "Gross remuneration linked to IRP5 not equal to total taxable income"

This error occurs when generating IRP5 files for annual or interim SARS submissions. It shows a mismatch between gross payment based on IRP5 codes, and total taxable income based on taxability.

Step 1- Calculate the difference

• Review the error report and calculate the difference between the two values shown
• Search for this difference in the employee’s year-to-date (YTD or YTD+) values across all payroll screens:
  • ED screen
  • DD screen
  • XD screen
  • OD screen
• If the difference relates to one line, correct it. If split across multiple lines, review each line carefully

Step 2 - Verify payroll definitions

• Check that you've set up the taxability and IRP5 codes correctly on:
  • ED screen
  • DD screen
  • XD screen
  • OD screen
• Common issue: You've set a taxable IRP5 code (for example, 3801) incorrectly to Never Taxable

Step 3 - Apply changes carefully

• Changing line definitions recalculates PAYE, SDL and UIF in the current period
• If working in a Tax Year End copy system, apply the same changes in the live system

Step 4 - Check directive numbers for lump sums

• Ensure a valid directive number exists on the IS screen for each line requiring one (for example, IRP5 codes 3608, 3901, 3907)
• If multiple lines have values, you need multiple directives (up to three per tax record)
• Don’t use invalid numbers such as 0000000

Important:
Due to the complexity of this error, Sage Support can only provide guidance. For detailed assistance, book a Professional Services Consultant. [Click here to book a consultation].