The Tax component covers all the statutory and functional requirements for tax processing. The tax codes and tax rates are provided by SAP in statutory tables.

In accordance with the Inland Revenue's requirements for operating a PAYE scheme with them, the Tax component allows you to:

• Deduct the correct amount of tax from employees' pay each time they are paid
• Calculate the correct amount of employees' and employers' NICs
• Keep an accurate record of the pay and deductions made
• Pay the Collector of Taxes the correct amounts due each month (or quarter)