what is meant by Residence Tax Area and Work Tax Area and what is the difference the between these two and what are you going to maintain in Residence Tax Area and Work Tax Area
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Answer Posted / prasanna patil
Residence Tax Area (Infotype 0207): Stores the tax area/tax
authority areas where the employee resides (group of
authorities to which an individual employee pays tax they
can be Fedral/State/County/City/Special)
Eg. Employee resides in Los Angeles, CA therefore tax
area set to California. The system will then display the Los
Angeles, state of California, and Federal tax authorities to
which the employee must pay tax.
Work Tax Area (Infotype 0208): Stores the tax
area/allocation/tax authority areas where the employee
works.The Work Tax Area infotype records the amount of time
an employee spends in each locality other than their
Residence Tax Area (Infotype 0207) throughout the tax period.
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