What is tax company in SAP PY-US - USA?

SAP Term: tax company

• Component: PY-US

• Component Name: USA

• Description: Four-character designation of a legal entity for tax reporting purposes. In the US Payroll component of the SAP HR System, each such designation is assigned a distinct Employer Identification Number EIN and is mapped to a BSI tax company for tax calculation purposes.

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• Key Concepts: 
  A tax company is a legal entity that is responsible for the calculation, collection, and payment of taxes. In SAP, the PY-US USA component is used to manage the tax company information. This includes setting up the tax company, assigning tax codes to the company, and managing the tax rates. 
  
  How to use it: 
  To set up a tax company in SAP, you must first create a new company code in the PY-US USA component. Once the company code is created, you can assign tax codes to it. You can also set up the tax rates for each code. Finally, you can manage the tax company information by entering the relevant data into the system. 
  
  Tips & Tricks: 
  When setting up a new tax company in SAP, it is important to ensure that all of the necessary information is entered correctly. This includes entering the correct tax codes and rates for each code. Additionally, it is important to keep track of any changes that are made to the tax company information so that it can be updated in a timely manner. 
  
  Related Information: 
  For more information on setting up and managing a tax company in SAP, please refer to the official SAP documentation. Additionally, there are many online resources available that provide step-by-step instructions on how to set up and manage a tax company in SAP.