How to correct e@syFile™ error: Tax codes 3703 and 3702 cannot be present for employee record in the same year of assessment
In accordance with the SARS BRS scope, PaySpace will automatically convert a 3703 tax code () to 3702 tax code (Reimbursive Travel Allowance Taxable) if the 3701 tax code (Travel Allowance) is present in the same tax year. As a result, all values previously reflected on 3703 will become taxable on assessment. A validation error will appear when the tax file is imported to e@syFile™ Employer, stating that tax codes 3703 and 3702 cannot be present for employee records in the same year of assessment.
Extract of the 2023|2024 SARS BRS
Navigate > Configuration > Payroll > Payroll Config > Payroll Config
In order to resolve this error, the following configurations need to be done:
1. Create a correction run linked to the February run. (Related FAQ: How do I create an interim (correction) run?)2. Once created, create a payslip on this correction run.3. Add the Reimbursive Travel Allowance Non-Taxable (tax code 3703) component on the payslip and process a negative amount, to reverse the reimbursement amount incorrectly captured.4. Add the Other Allowance Non-Taxable (tax code 3714) component with the positive amount, so that the reimbursement is captured correctly.
5. Close the run.6. Generate your payroll reports and resubmit the relevant reports.
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