What is resident tax area in SAP PY-US - USA?

SAP Term: resident tax area

• Component: PY-US

• Component Name: USA

• Description: The set of all tax authorities that levy taxes upon an employee at the employee's residence.

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• Key Concepts: 
  A resident tax area is a geographic area in which an employee is considered a resident for tax purposes. In the United States, this is typically the state in which the employee lives and works. The SAP component PY-US USA is used to manage the taxation of employees in the United States. 
  
  How to use it: 
  The PY-US USA component can be used to set up and maintain tax areas for employees in the United States. This includes setting up the resident tax area for each employee, as well as any other applicable tax areas. The component also allows for the calculation of taxes based on the employee's resident tax area. 
  
  Tips & Tricks: 
  When setting up a resident tax area for an employee, it is important to ensure that all relevant information is entered correctly. This includes the employee's address, as well as any other applicable information such as their marital status or number of dependents. 
  
  Related Information: 
  The PY-US USA component can be used in conjunction with other SAP components such as PY-US Payroll and PY-US Benefits to manage payroll and benefits for employees in the United States. Additionally, it can be used with other components such as PY-US Tax Reporting to generate accurate tax reports for employees.