Define Taxation Method for Company

In this step, you assign a tax calculation method to every organisational assignment. There are two methods of taxation:

No tax adjustments required at the end of the fiscal year regardless of the employee's tax status
Tax adjustment required at the end of the fiscal year based on the employee's tax status

Example

The year-to-date tax method is assigned to employee subgroup grouping EX (executives) and the period tax method is assigned to employee subgroup grouping WE (wage earners).

Requirements

The tax method selected for each organisational assignment or grouping at the start of the fiscal year should not be changed during the year. Any changes must be made retroactively after the close of the fiscal year.

Standard Settings

The standard system contains model entries for tax method assignments to certain organisational assignments.

Recommendation

You should only change tax methods at the start of a fiscal year.

Activities

To assign a tax calculation method, you:

1. Position the cursor on the node you want to edit.
2. Depending on the changes you want to make, either choose Change node or Create node.
3. Enter the data required.
4. Check the syntax by choosing Check.
5. Choose Save, and then Generate.

Further Notes

For more information on maintaining features, see the SAP Library documentation under HR -> HR Tools -> Features Editor.