What is preliminary tax in SAP PA - Personnel Management?

SAP Term: preliminary tax

• Component: PA

• Component Name: Personnel Management

• Description: A payment made by a person or company who is liable to pay income tax, calculated in advance and subject to refunds or additional fees depending on the final tax calculated for the income year.

Smart SAP Assistant

• Key Concepts: 
  Preliminary tax is a feature of the Personnel Management (PA) component of SAP. It is used to calculate the estimated tax liability of an employee based on their salary and other factors. This calculation is done in order to ensure that the employee pays the correct amount of taxes. 
  
  How to use it: 
  In order to use the preliminary tax feature, you must first enter the employee's salary information into SAP. This includes their gross salary, deductions, and any other relevant information. Once this information is entered, SAP will calculate the estimated tax liability for the employee. 
  
  Tips & Tricks: 
  It is important to ensure that all relevant information is entered into SAP in order for the preliminary tax calculation to be accurate. Additionally, it is important to keep track of any changes in salary or deductions as these can affect the estimated tax liability. 
  
  Related Information: 
  The preliminary tax feature can be used in conjunction with other features of the Personnel Management (PA) component of SAP such as payroll and benefits administration. Additionally, it can be used to help ensure compliance with local tax laws and regulations.