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

SAP Term: transmitting tax company

• Component: PY-US

• Component Name: USA

• Description: Legal entity that assumes responsibility for reporting all taxes owed both by the entity itself and by other legal entities of identical ownership. In the Tax Reporter component of US Payroll, this entity is identified to tax authorities in cases where tax reports for multiple tax companies are submitted in a single file.

Smart SAP Assistant

• Key Concepts: 
  A transmitting tax company is a company that is responsible for withholding taxes from employees’ wages and remitting them to the appropriate government agencies. In the United States, this is typically done through the Internal Revenue Service (IRS). The SAP component PY-US USA is used to configure and manage transmitting tax companies in the US. 
  
  How to use it: 
  The PY-US USA component can be used to set up and maintain transmitting tax companies in the US. This includes setting up the company’s tax ID number, contact information, and other relevant information. It also allows users to configure the company’s withholding tax rates and other settings. 
  
  Tips & Tricks: 
  When setting up a transmitting tax company in SAP, it is important to ensure that all of the information is accurate and up-to-date. This includes making sure that the company’s contact information is correct, as well as ensuring that the withholding tax rates are set correctly. 
  
  Related Information: 
  For more information on setting up and managing transmitting tax companies in SAP, please refer to the official SAP documentation for PY-US USA.