What should we do when an employee transfered from 1 comapny code to anoth

Hi Experts,
If an employee transfered from one company code to another code in the same organisation,what could be the implications.
Now my system is calculating Tax part as a new employee,and showing a few tAX aMOUNT and more netpay.How to control the system.
How should we maintain the system as tax calculations for the same employee.Please advice us.
Regards,
VSai.

Hi Aby,
Thanks for the reply.We did the Transfer Action.
Could u please el0barate.
We are not running termination action.
I am asking about the total tax deductions and total amount.
Please addvice,
VSai.

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