‘Pay run error: the number credit is outside the valid range’ when finishing the termination payrun.

Legacy KB ID: 5729

Question

I’m getting the ‘Pay run error’ with the message, ‘ Error: This error was passed through the Reckon.CashbookCore.V1….: E0000000754: The number credit is outside the valid range of 0 to 922337203685477.5807.’ when trying to process the termination of an employee. Therefore, unable to complete the termination. How can I resolve this?

Applies to:

Australian IPA Books+ user with Payroll modules.

Answer

The error occurs due to the negative PAYG tax withheld during the termination pay.


The negative value will be calculated if the PAYG from the current pay is less than the PAYG from the last process pay, based on the employee's normal earnings.

Why – When a termination occurs, and any outstanding leave is being paid out, the tax calculated on the leave component varies depending on the termination reason.

When the termination reason is set to Employee Resigned (or Employee was Terminated, or Unapproved Early Retirement)

PAYG is calculated on the marginal rates and not a flat % rate. More information can be found in the ATO’s publication https://www.ato.gov.au/Rates/Schedule-7---Tax-table-for-unused-leave-payments-on-termination-of-employment/

To work out the PAYG calculation for leave, the employee's previous pay run processed is required. As IPA Books+ picks that earning as its normal gross earnings

One of the reasons why this error may have occurred is if the PAYG withholding amount on the previous pay is more than the PAYG amount calculated on their final termination pay for the leave components.

Based on ATO calculations, the system will need to subtract the employee’s normal PAYG withholding amount (as in IPA Books+ we take that as your previous pay) from the calculated PAYG withholding for the final pay of the leave.

In the process of calculating the PAYG withholding amount for the final payout, as per the ATO’s guidelines HERE we will need to work out the amount to withhold from employee’s normal gross earnings. In this aspect, IPA Books+ will check the tax withheld on the previous pay.

Therefore, if you have changed the Pay period in your previous pay from Fortnightly to weekly or 1 to 0.5, your tax withheld will adjust accordingly, and withhold more as per weekly earnings.

Hence, if the former amount is less than the latter, it results in being the negative PAYG withholding and therefore, displays the error.


Solution

Solution 1: Edit and enter the final tax amount manually: 

This solution advises you should calculate the tax amount manually (after consulting your accountant) and enter them manually in the final pay.

  1. 1) To be able to enter the tax manually, include an earnings line with a value of 0.01 cent under Earnings and Leave area.
  2. This will then enable the gross earnings under the tax section of the pay run.
  3. Scroll to the tax section. Select the Details icon to edit the tax amount.
  4. You will then manually edit the tax amount to the correct value and enter an amount in the Override tax amount field.
Solution 2: Edit the Pay Period on the final termination pay to 0.5 from 1:

If you have changed the pay period for the last pay of the employees from 1 to 0.5 (i.e. fortnightly to weekly), PAYG on that pay was calculated on the weekly basis. This means it would have withheld more than it would have withheld in a fortnightly pay.

As IPA Books+ will pick up this last pay, as the normal gross earnings, it will use this PAYG withholding for the calculation of withholding for AL payout.

As a workaround, change the pay period for the final pay to 0.5.

  1. On the final termination pay, include an earnings line with a value of 1 cent. 
  2. This will then show the number of pay periods included in this pay under the tax section of the pay run. Change the value to 0.50. 
  3. This will then work out the PAYG withholding on a weekly basis. However, care to be taken that you verify the PAYG amount is as per your expectation.

How did we do?

Why do I get an Error 522 when I attempt to add my bank account to my BankData record through Yodlee

Payment summary is out by Pays, which was done via YTD setup.

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