Processing class 71 in Payroll

Processing class 71 (Wage type tax classification) defines the tax combination that needs to be done. Table : V_512W_D
Each wage type is assigned to a taxability class via processing class 71.
The tax classes are assigned to each tax model in different combinations in table T5UTM (Tax Model) and those values indicates for which wage types the tax type combination will be used.
For example, if a wage type contains value ‘1′ (regular wages) in Wage type tax classification 71 and only tax models (assigned for each tax authority) which have a ‘1′ in the tax class field (defined in tax tables) will apply to the wage type and hence only those wages will be taxed using the specified combination.
To quote one more example, say a wage type should not be taxed for a particular state but for other states it should be taxed. In this scenario, a new specification class can be created and assigned to the processing class 71 against respective wage type. The same value should be entered in the tax class field against all the tax models for which the tax has to be calculated and it should not be assigned to the model where it should not be taxed.