The purpose of the Tax Policy screen is to allow users to develop and maintain tax policies—the various instructions the system uses to calculate U.S. domestic tax assistance and withholding. For example, a tax policy might instruct the application to use statutory rules to calculate tax assistance for all authorities but to follow supplemental rules for withholding. A company may have a single tax policy for all its relocations/assignments, or there may be different tax policies for different classes of assignments. For further information about tax policies and details on how to create a tax policy, check out this article

The purpose of the Wage Policy screen is to allow users to develop and maintain wage policies. A wage policy is used to calculate the wage base, which is an important baseline number in the calculation of U.S. domestic tax assistance and withholding. Defining wage policies is one of the many ways to customize tax assistance and withholding calculations to fit the needs of the organization. For further information about wage policies and details on how to create a wage policy, check out this article