What is UTM unit in SAP PY-CL - Chile?

SAP Term: UTM unit

• Component: PY-CL

• Component Name: Chile

• Description: A standard monetary unit in that is used to calculate taxes and fines. The UTM unit is known in Spanish as 'unidad tributaria mensual', and is adjusted monthly according to the an consumer price index.

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• Key Concepts: 
  UTM unit is a unit of measurement used in the Chilean payroll system. It stands for Unidad de Medida Tributaria (Tax Measurement Unit). It is used to calculate the amount of taxes that an employee must pay. The UTM unit is updated every year by the Chilean government and is based on the average salary of the previous year. 
  
  How to use it: 
  The UTM unit is used to calculate the amount of taxes that an employee must pay. The amount of taxes is calculated by multiplying the employee’s salary by the UTM unit. For example, if an employee earns a salary of $1,000 and the UTM unit is 0.25, then the employee must pay $250 in taxes. 
  
  Tips & Tricks: 
  It is important to keep track of the UTM unit as it changes every year. This will ensure that employees are paying the correct amount of taxes. Additionally, employers should make sure that their payroll system is up-to-date with the latest UTM unit. 
  
  Related Information: 
  The UTM unit is specific to Chile and is not used in other countries. Additionally, it should not be confused with other units of measurement such as the US dollar or Euro.