This error occurs when a terminated employee is re-hired and the same employee Masterfile is used to process their pay or a correction was made to their pay after termination (finalisation). Because the employee was previously terminated, Inland Revenue (IR) has finalised their record and will not update the record with new details.
Where you have re-hired the employee and they will continue to have future pays
Restore data from a backup. See: Attaché: How do I restore an archive backup file?
Create a new Employee Masterfile.
Process Pay.
In Payday Filing, Hide the rejected batch and Submit the new batch.
📌Note: The IRD will add a termination date to an employee if they have not received a pay after three months. This will then cause the error 106 if they are paid or even an empty pay is processed. The termination date will need to be removed by following the steps above.
Where the pay process was an adjustment or missed payment for the terminated employee
Log in to myIR.
Search for the employee record.
Delete the End Date.
In Attaché, resubmit the payday filing batch.*
After the batch has been submitted successfully, log back in to myIR and re-enter the Finish Date.
* 📌Note that because the error occurred due to an IR validation rule and the payday filing batch is not updated after applying the fix in myIR, the error code 106 message will still be displayed. Simply click the Submit button again to submit the batch.