Defining Pay Entity

The pay entity is a legal definition of an organization from a payroll perspective; it is the organization that is responsible for making payments to payees. Often, the organization and the pay entity are the same. Use the Pay Entity component in the core Global Payroll application to define pay entities for your organization.

If your social insurance establishments, labor insurance establishments, and tax establishments for income tax and inhabitant tax are smaller organizations than the pay entity, define them on the Tax Establishment page described in this topic. You must have at least one tax establishment defined for social insurance, labor insurance, income tax, and inhabitant tax even if the pay entity as defined is the same as each of these establishments.