Residence Tax Area (Infotype 0207)
The residence tax area is the group of authorities to which an individual employee pays tax.
As long as a particular combination of local, state and federal tax authorities has been maintained in the relevant section of the Implementation Guide, all the tax authorities to which the employee must pay tax, based on their residence, will be displayed by the system in this infotype.
For further information, please see the Tax areas section of the US Payroll Implementation Guide.
Suppose that an employee lives in San Francisco, California. You enter the code CA01 for that tax area. The system will then display the San Francisco, state of California, and Federal tax authorities to which the employee must pay tax.