Tax code assignment to wage types

[Former Member]

Hi Experts,

i have a question to know , When Wage types are already assigned to processing class 71, then why do we assign wage types to tax codes? ,

What does tax codes do?

Please help.

[venkateshorusu · Accepted solution]

When you assigned processing class to a wage type, It will be processed according to the logic has been written in the rule but there are many other conditions where it is a monthly exemption or annual exemption what is the limit for exemption, whether wage type is valid or not all these conditions will be cross checked with the help of tax code only since tax code is maintained against to the wage type at table level and some thing has been coded in the tax code as well.

So even though you have maintained processing class according to the requirement you have to maintained tax code as well.

Regards

Venkatesh

[venkateshorusu]

If your query is answered you can close thread.

Regards

Venkatesh

[Former Member]

Hi,

we specify that check this wage type in the specified table whether it is reimbursement / allowance / tax fully / exempt in the PC 71. but we are not assigning any type of processing here.

these processing is triggered in the table V_T7INT9 for the specific wage type specific Tax code and assignment of specific wage type for calculation.