What is imputed income in SAP PA-EC - Enterprise Compensation Management?

SAP Term: imputed income

• Component: PA-EC

• Component Name: Enterprise Compensation Management

• Description: Difference between the tax-relevant price and the exercise price of awards.

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• Key Concepts: 
  Imputed income is a type of income that is not actually received by an employee, but is instead calculated and reported for tax purposes. In SAP's Enterprise Compensation Management (PA-EC) component, imputed income is used to calculate the taxable value of certain benefits, such as company cars or housing allowances. 
  
  How to use it: 
  In PA-EC, imputed income is calculated based on the value of the benefit and the employee's tax rate. The taxable value of the benefit is then added to the employee's taxable income for the year. This amount is then reported on the employee's tax return. 
  
  Tips & Tricks: 
  It is important to ensure that the correct tax rate is used when calculating imputed income. This will ensure that the correct amount of taxes are paid by the employee. Additionally, it is important to keep track of any changes in tax rates throughout the year, as this may affect the amount of imputed income that needs to be reported. 
  
  Related Information: 
  For more information on imputed income and how it is calculated in SAP's PA-EC component, please refer to SAP's documentation on Enterprise Compensation Management.