What is wage area in SAP PSM-FG - Functions for U.S. Federal Government?

SAP Term: wage area

• Component: PSM-FG

• Component Name: Functions for U.S. Federal Government

• Description: A geographic area defined by OPM within which a single set of wage schedules is applied uniformly by Federal installations to covered occupations. For appropriated funds there are in total 131 wage areas defined 5 CFR 532 Subpt. B, App. A

Smart SAP Assistant

• Key Concepts: 
  A wage area is a grouping of personnel areas in the SAP system. It is used to define the wage types and wage components that are applicable to a particular personnel area. In the U.S. Federal Government, the wage area is used to determine the applicable federal, state, and local taxes for employees in a particular personnel area. 
  
  How to use it: 
  The wage area is used to define the wage types and wage components that are applicable to a particular personnel area. This information is then used to calculate the applicable taxes for employees in that personnel area. The wage area can be set up in the SAP system by entering the relevant information into the relevant fields. 
  
  Tips & Tricks: 
  When setting up a wage area, it is important to ensure that all of the relevant information is entered correctly. This will ensure that the correct taxes are calculated for employees in that personnel area. Additionally, it is important to keep the wage area up-to-date with any changes in tax laws or regulations. 
  
  Related Information: 
  The SAP PSM-FG Functions for U.S. Federal Government module provides additional functionality related to wage areas, such as setting up tax tables and calculating taxes for employees in different personnel areas. Additionally, this module provides functionality related to other aspects of payroll processing, such as calculating benefits and deductions.