– Legal Entity is a legal organization, in simple language.
– You can also mark these legal entities as Payroll statutory unit
– And also are required to pay payroll tax
– We can register payroll statutory units to pay and report on payroll tax and social insurance for your legal entities.
– When you are not certain about the number, you can create the Legal entities automatically, by using Enterprise Structures Configurator. But the prerequisite for this is you first need to identify all the countries in which your enterprise operates.
Steps to create Legal entity with example?
Followings are the steps to create and manage legal entity(LE) in Fusion HCM-
1) Firstly, select Setup and Maintenance
2) Further , go to Task – Mange Legal Entities
3) Then create a New LE and Apply and Go to Task
4) After that go to + (plus) to create new LE
5) Then you will land on below page
6) – Select the country, Enter the name of LE, Legal Entity Identifier and other details
here I am taking one example for your reference –
1) Country – United State
2) Name – US1 Legal Entity
3) Legal Entity Identifier – LE_US_1
4) Start Date, End date is optional and
5) Then select checkbox – Payroll Statutory Unit (if you want the LE to be registered to report payroll tax) this is optional
6)Legal employer checkbox -select if your LE contains employees
Enter Registration Information –
7) Legal Address – At last , search and select (eg .521 PARK AVENUE/CHICAGO, ILLINOIS 60624)
8)Enter EIN (Employee Identification Number)
9)Then , enter Legal Reporting Unit Registration Number
Save and Close.