Legal establishments and tax provider companies

Legal establishments are created within a legal entity, and are a country configurable feature.

For HR Payroll, a legal establishment is required if an organization has multiple tax provider companies within a legal entity. For example, a legal establishment is required if multiple unemployment accounts/experience rates exist for a single tax authority.

Before a tax provider company can be defined, a legal entity must already be defined. If a legal establishment is needed for your organization, it must be defined within the legal entity before the tax provider company is defined.

Before a legal establishment can be defined, a legal entity must be defined. In addition, legal establishments must be selected on the organization's country configuration.

Legal establishments are required for Canadian processing. The Payroll Account Number and Quebec Enterprise Number are defined on legal establishment. The legal establishment is stored on wage and deduction history for reporting purposes. The Payroll Account Number and Quebec Enterprise Number must be defined for any related reporting.