Considerations to Assign Employee Details Using TRU Currency

While configuring an international payroll legislation, select the Assign employee details using TRU currency option if you have the following requirements:

• You have an organization that has employees in multiple countries and you pay the employees in multiple currencies.
• You don’t have a requirement to calculate employee taxes.
• You need to generate separate payroll reports for each currency.

Here are some aspects you must consider while configuring the legislation.

Create TRU

For each currency that you pay your employees, define a tax reporting unit (TRU) within a payroll statutory unit (PSU) and capture the currency of the TRU. For example, create a TRU for Afghan Afghani currency and a separate TRU for Euros. All employees located in countries which use the euro currency, such as those based in France or Slovenia, are allocated to the same TRU. Define both the TRUs within a single PSU.

Note: You must only create a single TRU for each currency.

Use the TRU to group employees, within a Legislative Data Group (LDG), based on their salary currency.

This approach facilitates the following:

• You can calculate payroll balances for each different currency and TRU.
• You can generate separate payroll reports for each currency. TRU is a supported context for balances used in payroll reports such as the payslip.

Salary Basis Currency of Employee

The payroll run uses the salary basis currency of the employee to identify a TRU and associate it to the employee. The salary basis currency of an employee is derived from the input currency of the element associated to the salary basis.

For example, when an employee is assigned to a salary basis with a currency of Euro, the payroll run assigns the employee to the TRU that also has a Euro currency.

Note: Define the elements at the assignment level.

What Happens when you Process Payroll?

Subsequently, when you run the payroll, the payroll run initiates and completes the following:

• Identifies the TRU based on the salary basis currency of the employee and associates the TRU to the employee.
• Creates the tax card and the assignment association.
• Calculates payroll and completes all other processes. The payroll run uses the TRU context and calculates balances for each different currency and TRU.

Updates to the Initial Configuration

For any subsequent updates, consider the following:

• If an employee moves to another country and payment currency, consider the following:
  • Define a new TRU for the new currency and manually assign the new TRU to the employee.
  • Create a new assignment and a new tax card for the new assignment. An employee can’t have multiple, concurrent tax cards. You must end the original tax card and create a new one for the new assignment.

• During a global transfer, consider the following:
  • For transfers within the same PSU or legal employer, create a new assignment under the same payroll relationship. TRU and assignment associations are created for the existing deduction card.
  • For transfers to a different PSU or legal employer, create a new assignment under a new payroll relationship. A new deduction card, TRU and assignment association are created.