What is tax unit in SAP LOD-SF-EC - Employee Central?

SAP Term: tax unit

• Component: LOD-SF-EC

• Component Name: Employee Central

• Description: An individual, or a married couple who file a joint tax return, along with all dependents of that individual or married couple. A tax unit is thus not necessarily the same as a household. &EXAMPLE& Two persons cohabiting would be considered a household, but if they are not legally married, they would file separate tax returns and be considered two tax units.

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• Key Concepts: 
  A tax unit is a grouping of employees in SAP Employee Central (EC) that is used to determine the tax withholding and reporting requirements for each employee. It is based on the employee's country of residence, marital status, and other factors. The tax unit is used to calculate the correct amount of taxes to be withheld from each employee's paycheck. 
  
  How to use it: 
  In SAP EC, the tax unit is set up in the Tax Information section of the employee's profile. The tax unit is determined by the employee's country of residence, marital status, and other factors. Once the tax unit has been set up, it will be used to calculate the correct amount of taxes to be withheld from each employee's paycheck. 
  
  Tips & Tricks: 
  It is important to ensure that the tax unit is set up correctly in order to ensure that the correct amount of taxes are withheld from each employee's paycheck. It is also important to keep the tax unit up-to-date in order to ensure that any changes in an employee's status or country of residence are reflected in their payroll calculations. 
  
  Related Information: 
  For more information on setting up and managing tax units in SAP EC, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_EMPLOYEE_CENTRAL/1711/en-US/f3d7f9a8b2e14c8a9f3d7f9a8b2e14c8a9f3d7f9a8b2e14c8a9f3d7f9a8b2e14c8a9f3d7f9a8b2e14c8a9f3d7f9a8b2e14c8a9f3d7f9a8b2e14c8a9f3d7f9a8b2e14c8a9f3d7f9a8b2e14c8a9f3d7f9a8b2e14c8a9f3d7f9a8b2e14c8a9f3d7f9a8b2e14c8a9.html