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Component: PY-CL
Component Name: Chile
Description: A procedure in that applies to the unique tax of the second category income tax, whose rates progressively increase as income increases. Reliquidation is described in the an income tax law, and consists of prorating certain payments so that the employee falls under a lower income tax bracket and pays a lower tax rate. For example, to reduce the applicable tax rate, a year-end bonus received by an employee can be prorated over the 12 months of the year.
Term: Reliquidation
Component: PY-CL Chile
Definition: Reliquidation in SAP Payroll for Chile refers to the process of recalculating and correcting previously processed payroll results, typically to adjust tax withholdings, social security contributions, or other statutory deductions after an initial payroll run has been completed. It ensures that any changes in employee data, legal parameters, or corrections are accurately reflected in the payroll results.
How It’s Used: In real SAP projects, reliquidation is used when errors or updates are identified after payroll has been posted—for example, if an employee's tax status changes, or if there was an incorrect deduction applied. The payroll administrator runs the reliquidation process to recalculate the affected payroll periods without reprocessing the entire payroll, thus updating the payroll results and ensuring compliance with Chilean labor and tax laws.
Important Configuration:
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