What is tax-when-earned in SAP PY-US - USA?

SAP Term: tax-when-earned

• Component: PY-US

• Component Name: USA

• Description: Processed in the period represented by the check date.

Smart SAP Assistant

• Key Concepts: 
  Tax-when-earned is a feature of the SAP Payroll (PY-US USA) component that allows employers to withhold taxes from employee wages as they are earned. This feature helps employers comply with federal and state tax regulations, as well as ensure that employees are not over-taxed. 
  
  How to Use It: 
  To use the tax-when-earned feature, employers must first configure the payroll system to recognize the applicable tax regulations. This includes setting up the appropriate tax codes and withholding rates for each employee. Once this is done, employers can then set up the payroll system to automatically withhold taxes from employee wages as they are earned. 
  
  Tips & Tricks: 
  It is important to ensure that the payroll system is configured correctly in order for the tax-when-earned feature to work properly. Employers should also regularly review their payroll system to make sure that all applicable taxes are being withheld correctly. 
  
  Related Information: 
  For more information on how to configure and use the tax-when-earned feature in SAP Payroll (PY-US USA), please refer to the official SAP documentation.