The system uses the data recorded in this infotype to:

• Calculate withholding tax and the associated deduction from the gross wage amount
• Perform withholding tax accounting with the cantonal tax offices
• Create withholding tax statements
• Create wage statements

 To run payroll, this infotype must be maintained. Therefore, the system automatically displays this infotype for you to maintain as part of the Hiring action. If no fiscal data is available for an employee, the R/3 System cancels the payroll run for the personnel number in question.

If you call up the infotype in change mode, the R/3 System displays the following fields for you to maintain:

In the Tax liability field, you assign the appropriate category to the employee. In the case of minors without permit of residence C, the R/3 System automatically refrains from calculating withholding tax until such minors reach the minimum age for withholding tax liability.

In the Canton and Municipality fields, you enter the employee’s tax canton or tax municipality.

You must specify the canton of residence of employees who are liable to pay withholding tax because:

• The withholding tax rate depends on the canton
• Withholding tax is calculated by canton (and sometimes by municipality)

 SAP advises you to specify the canton of residence, even for employees who are not liable to pay withholding tax, because the wage statement that must be created for all employees can then be selected and sorted by canton.

If you do not make entries in these fields, the system evaluates the data in the LAW (wage statement) payroll unit to which the employee is assigned. However, it does not evaluate the Costs reimbursement field.

By entering data in one of the fields, you override the default values of the payroll unit. The entries you have overridden are printed on the employee’s wage statement.

You usually record the withholding tax rate that applies to an employee who is liable to pay withholding tax. The system uses this rate and the cantonal rules to calculate the withholding tax amount.
Alternatively, you can enter a percentage or an amount. You are advised to do this if your enterprise does not have many employees who are liable to pay withholding tax.

 If an employee’s assignment to a rate changes (because he or she marries, for example), you may only ever enter the new withholding tax rate at the beginning of the next month.