What is tax file number in SAP PY-AU - Australia?

SAP Term: tax file number

• Component: PY-AU

• Component Name: Australia

• Description: A unique number assigned to each employee by the n Tax Office. Employees without a tax file number pay a higher rate of tax. In the standard system, the higher rate of tax is applied by assigning tax scale 4a to residents and tax scale 4b to non-residents.

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• Key Concepts: 
  A Tax File Number (TFN) is a unique nine-digit number issued by the Australian Taxation Office (ATO) to individuals and businesses for tax and superannuation purposes. It is used to identify taxpayers and their tax records. In SAP, the TFN is used in the PY-AU Australia component to identify employees for payroll processing. 
  
  How to use it: 
  In SAP, the TFN is entered in the employee master data in the PY-AU Australia component. This information is then used for payroll processing and tax reporting. The TFN must be entered accurately and kept up-to-date to ensure that payroll calculations are correct and taxes are paid correctly. 
  
  Tips & Tricks: 
  When entering a TFN into SAP, it is important to double-check that it has been entered correctly. It is also important to ensure that any changes to an employee’s TFN are updated in SAP as soon as possible. 
  
  Related Information: 
  For more information on the TFN, please refer to the ATO website: https://www.ato.gov.au/Individuals/Tax-file-number/.