Validation Error: "Amount for Medical Scheme Tax Credit is negative"

You are generating the IRP5 files for either the Annual or Interim SARS Submission and instead of creating the IRP5 files the system informs you there is mandatory information outstanding. A report will then print with a list of errors and this error is in the report.

• If you are doing an IRP5 export for multiple companies, the employee(s) for whom the error message prints, determine the company in which they are in and access each company respectively
• From the mains screen of the company, go to Payroll > Payslip Information and select the employee you need to fix
• In the routing block type MHS and enter. This will take you to the Medical Aid History Screen.
• Confirm that the Tax Credit values on the Monthly Contribution History and Summary Record are the same
• Should there be invalid Additional Tax Credits calculated, do a beneficiary adjustment

 NOTE: If the employee is terminated, you need to reinstate the record to make these changes. Re-instating a terminated record may result in the PAYE, SDL, and UIF being changed from the original amounts. Make a backup before proceeding with this process. 

• Take note of the number of beneficiaries per month. Make a print screen
• To do a beneficiary adjustment, remove or change the beneficiaries for each month of the tax year by typing in any value or negative values of the current beneficiaries in the Beneficiary Adjustment block. This will then remove /change the tax credits for each month

 TIP: If you are not able to do an adjustment, make sure the months where the Additional Tax Credits calculated incorrectly is active - you might need to adjust the Medical Aid Start Date on the Employee Information screen to be able to make the changes. Remember to correct the start date and active periods, once the adjustments are completed. 

• Then go remove the Beneficiary Adjustment again so that the system can calculate the tax credit 
• It should then remove the negative tax credit value