Legal entities

A legal entity is a distinct legal body with a unique identification number.

In Infor HR Talent, a legal entity can be included on a work assignment. You can group multiple work assignments for a legal entity, such as for regulatory reporting purposes. An organization can have multiple legal entities defined for it. If an organization contains more than one legal entity, the entities must be differentiated by country. If you define a legal entity for an organization/country combination, the legal entity is the default for any work assignment that is created for that organization/country.

You can also choose a tax provider company for the legal entity. The tax provider company is used to map the legal entity to the tax provider company for tax rates and other tax setup.

A legal entity can have smaller components, known as legal establishments. The legal establishment can have a unique identification number.

After you create the legal entities and legal establishments for an organization, you can assign the entities and establishments to specific organization units within the organization structure. Any work assignments that are created within an organization unit have the appropriate default legal entity and establishment information. You can choose to override this default information..

Sample legal structure

This diagram shows an example of a legal structure. To implement this structure, define three legal entities: Entity A, Entity B, and Entity C. Then define three legal establishments: B1, B2, and B3, under Entity B.

After defining the legal entities and legal establishments, this diagram shows how you can associate them with organizations and organization units. In this example, there are three legal entities and three legal establishments defined for the organization. The Operations, HR, and Finance organization units are the legal entities, and the HR organization until has three legal establishments under it.

In this scenario, any work assignments that are created within the Operations organization unit have Entity A as the default legal entity. Any work assignment that is created within the Training organization unit have Entity B as the default legal entity. It will have Establishment B2 as the default legal establishment.