What is tax scale in SAP PY-AU - Australia?

SAP Term: tax scale

• Component: PY-AU

• Component Name: Australia

• Description: Specifies the level of tax paid by an employee. In the standard system, tax calculations for Payroll are based on the following tax scales: 0 No taxation 1 No tax-free threshold 2 Tax-free threshold claimed 3 Non-residents 4a No tax file number for residents 4b No tax file number for non-residents 5 Full Medicare levy reduction claimed 6 Half Medicare levy reduction claimed 7 No leave loading 8 Flat-tax percentage 9 Flat-tax amount H HECS contributions HV Voluntary HECS contributions

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• Key Concepts: 
  Tax scale is a feature of the SAP Payroll component for Australia (PY-AU). It is used to calculate the amount of tax to be withheld from an employee’s salary based on their annual income. The tax scale is based on the Australian Tax Office’s (ATO) tax tables and is updated regularly to reflect changes in taxation laws.
  
  How to use it: 
  The tax scale can be accessed in the SAP Payroll component for Australia (PY-AU). To use it, enter the employee’s annual income into the tax scale and it will calculate the amount of tax to be withheld from their salary. The tax scale can also be used to calculate the amount of tax to be paid by an employer on behalf of an employee.
  
  Tips & Tricks: 
  It is important to ensure that the tax scale is updated regularly to reflect any changes in taxation laws. This will ensure that employees are not over or under taxed. Additionally, it is important to check that the correct tax scale is being used for each employee as different scales may apply depending on their income level.
  
  Related Information: 
  For more information about the SAP Payroll component for Australia (PY-AU) and how to use the tax scale, please refer to the official SAP documentation. Additionally, further information about taxation laws in Australia can be found on the Australian Tax Office’s website.