Org Payroll Setup > Legal Entity

A legal entity is an organization that federal tax authorities recognize. A single organization might have one legal entity or several. Because each legal entity belongs to one country, organizations paying employees in more than one country need a separate legal entity for each country they operate in. For example, if your organization has employees in both Canada and the United States, it must have at least two legal entities configured: one for US employees and one for Canadian employees.

Before You Begin: You should be familiar with how to set up organizations in Dayforce. General information about organization structure is available in Organization Hierarchy.

In Dayforce, every organizational unit configured with Site selected in the Org Level drop-down list in Org Setup > Organization must be assigned to a legal entity, and every organizational unit configured with On-site department selected in the Org Level drop-down list in Org Setup > Organization can have a legal entity explicitly assigned or can inherit the assignment from its parent site.

Configuring legal entities involves the following general tasks:

Creating legal entity entries
Entering customer funding identifiers and bank information for legal entities
(Canada only) Entering employment insurance factors and funding identifiers
Assigning legal entities to organizational units

Note: If you logged in with the English (UK) culture setting, the Legal Entity tab is called Organization.

Overview of Legal Entity Setup

Legal entities are configured in Org Setup > Org Payroll Setup > Legal Entity. This screen contains a list of legal entities associated with the organization that have already been created. You can also create new legal entities here.

Before You Begin: Dayforce contains several restricted fields that are System Role Only, meaning that they’re available only to users who are logged on in a support or services role. The support user role is configured through the Dayforce database.

The following screenshot shows an example of Org Setup > Org Payroll Setup > Legal Entity:

Example of Org Setup > Org Payroll Setup > Legal Entity view.

Creating a basic legal entity entry involves filling out the fields for the corresponding columns, listed in the following table:

Legal entity settings
Setting	Description
Name	The name of the legal entity, which is shown on employees' earning statements and tax forms.
Description	A description for the legal entity.
Operating Country	The country that the legal entity is based in. Depending on how your organization is configured, this drop-down list can include one or more countries. Legal entities can only be assigned to sites that are in the same country.
Federal/Business ID Number	Field for the business number of the legal entity.
Active	Indicates if the legal entity is active.
Effective Start Date Effective End Date	The time period when the legal entity is active.
Reference Code	XRefCode for use with imports and exports. See Cross-Reference Codes
No Back Office	Checkbox that, when selected, prevents Dayforce from filing with Dayforce Back Office for this legal entity. Required for legal entities in ConnectedPay projects.
Legal Entity Status	Determines whether Dayforce generates quarterly and annual reports. The drop-down list contains the following options (each indicates whether quarterly and annual reporting are included or excluded): Active: Included Implementation: Excluded Lost no Tax Forms or Filing Required: Excluded Lost with Tax Forms and Filing: Included Out of Business (Acceleration): Included Seasonal: Included
Process for Employment	Drop-down list that contains the following three options (no selection defaults to Regular Payroll): Contractor Payroll Pensioner Payroll Regular Payroll
Earning Statement Logo	Allows you to assign a company logo to all earning statements for the legal entity. This option overrides any logo assigned to a country. To set up a legal entity logo as an option in this drop-down list, go to the Images tab in Site Setup > Client and select the ESS Earning Statement Legal Entity in the Image Type drop-down list and enter a unique name for the logo. This option applies to logos on online earning statements.

Legal Entity Setup: Minimum Requirements

At a minimum, you must complete these fields when you set up a legal entity in the Legal Entity screen:

The Name field must contain the name of the legal entity.
The Country Code drop-down list in the Address tab (or the Operating Country column drop-down list) must contain a country.
The Federal/Business ID Number field must have an entry.
The Active column checkbox must be selected for the legal entity to be active.
The Effective Start column must have a start date for the legal entity.

For information about creating legal entities, see Configure Basic Legal Entity Entries.

When you've created an entry, you can customize the legal entity's options in the other tabs based on your organization's needs and the entity's country of operation.

Tabs in Org Setup > Org Payroll Setup > Legal Entity

Dayforce shows several tabs in the Legal Entity screen. You can view and configure the legal entity in these tabs.

Org Setup > Org Payroll Setup > Legal Entity showing highlighted tabs.

Legal Entity Tabs by Geographic Location

Note: If you logged in with the English (UK) culture setting, the Legal Entity tab is called Organization.

Depending on the geography of the legal entity, different tabs are shown. This table lists the tabs in Org Setup > Org Payroll Setup > Legal Entity by geographic location:

Legal Entity tab availability by location
Tab	Australia	New Zealand	Mauritius	Canada	Ireland	Singapore	UK	US
Address	●	●	●	●	●	●	●	●
Tax Authorities	●	●	●	●	●	●	●	●
Customer Funding Identifiers	●	●	●	●	●	●	●	●
Employment Insurance				●
Workers Comp	●		●	●	●	●		●
Multiple Worksite Reporting								●
Tax Remittance				●
Quarterly/Annual Reporting Parameters								●
YTD Amount				●
Fiscal Calendar (Financial Calendar*)			●	●	●	●		●
STP Parameters	●
Parameters					●
Payday Filing Details		●
Payroll Parameters						●
Taxation Parameters		●	●	●			●	●
New Hire Reporting								●

* The Fiscal Calendar tab is shown as the Financial Calendar tab when you're logged in with the English (UK) or English (Ireland) culture setting.

Description of Legal Entity Tab Contents

The following table describes each of the tabs in Org Setup > Org Payroll Setup > Legal Entity:

Legal Entity tabs
Label	Description
Address	The legal address of the legal entity on tax forms. The address doesn't determine what taxes are applied to employees. In general, the employer's work site address, as set up in Org Setup > Organization in the Organization tab, determines the taxes. Some taxes are determined by employees' home addresses as set up in People.
Tax Authorities	The federal, provincial, state, and local taxes for the legal entity's operating country.
Customer Funding Identifiers	The specific account or accounts used by legal entities to pay employees. A funding identifier set at the legal entity level overrides any pay group account unless overridden at the site or department level in Org Setup > Organization in the Organization tab. For Canadian legal entities, the funding identifier must start with E, F, or L (to indicate the series), followed by an alphanumeric character (except O, I, or Z) and three numbers. `E4000`, `F4000`, and `L4000` are reserved and can't be used.
Employment Insurance	(Canada only) Custom employment insurance rates set at the federal level, except for Quebec which is set at the provincial level. Legal entities are granted special rates based on the benefits offered to their employees.
Workers Comp	Contains workers' compensation classification codes. In Canada, the provincial workers' compensation boards issue these codes. In the United States, these codes are issued either by state workers' compensation boards or private insurance companies.
Multiple Worksite Reporting	(US only) Contains worksite numbers for legal entities who have multiple locations that are covered under a single Unemployment Insurance (UI) account; this can be a state requirement.
Quarterly/Annual Reporting Parameters	(US only) Contains tax reporting parameters at the legal entity level so that the values are properly transmitted to Dayforce Tax Service at the quarter-end and year-end.
Tax Remittance	(Canada only) The configuration options for each tax authority that determine how legal entities remit taxes through the Government Remittance System (GRS) in the Dayforce back office.
YTD Amount	See Enter YTD Amounts of Employer Taxes for Canadian Legal Entities.
Fiscal Calendar	Assigns a fiscal calendar to the legal entity when the legal entity has a fiscal year that's different from the calendar year. One or more fiscal calendars must be set up in Payroll Setup > Fiscal Calendar before you can assign a fiscal calendar to the legal entity. See The Fiscal Calendar Tab.
STP Parameters	(Australia only) The details about the legal entity that are sent to the Australian Tax Office (ATO) when an STP (Single Touch Pay) event occurs.
Parameters	The country-specific taxation configuration for the Republic of Ireland and for the UK.
Payday Filing	(New Zealand only) The details about the legal entity that are sent to the New Zealand Inland Revenue (IR) when a Payday Filing (PDF) event occurs.
Taxation Parameters	The country-specific taxation configuration. For the US, the configuration can include adding tax form confirmation numbers for Puerto Rico or assigning a legal entity territorial-filing status. For Canada, the configuration can include selecting the Apply Status Indian Calculations to Legal Entity's Employees checkbox.
New Hire Reporting	(US only) The details for the reporting of hew hires with the Department of Health and Human Services (HHS).
Payroll Parameters	(Singapore only) The configuration settings for Singapore payroll.