The employer deducts tax from the employee’s wages as and when paid, in installments towards the employee's annual tax liability. The guidelines for tax calculation takes into consideration the gender, marital status, and the number of dependants of the employee.

You can use this component only if a record exists in infotype Schedular Tax Deduction (0198) for your employee.

The family details and marital status in infotype Schedular Tax Deduction (0198) is obtained from infotype Personal Data (0002) or input manually.

The STD component allows you to carry out the following:

• Compute normal and other earnings based on maximum deductibles
• Compute earnings for off-cycle based on the previous month’s earnings
• Process deductions on normal earnings
• Process deductions on other earnings