1. Implementing Global Payroll
  2. TRU Defaulting Rules for Payroll Core

TRU Defaulting Rules for Payroll Core

For an international payroll legislation such as United Nations, you can automatically assign a Tax Reporting Unit (TRU) to a newly hired employee.

The TRU triggers the creation of a deduction card for the employee and the necessary TRU and assignment associations. This information ensures that an international employee is successfully processed in the Calculate Payroll process.

Use the Configure Legislations for Human Resources task and select any of the TRU defaulting rule options in the Deduction Card – Tax Reporting Unit Association section on the Legislative Rules page. The option you select controls how deduction cards and associations are created for a newly hired employee. The three TRU defaulting rule options are explained here.

Assign Employee Details Using Main TRU

Select this option if you have these requirements:
  • You don't have a need to calculate employee taxes.
  • You are paying all your employees within a legislative data group in the same currency.
  • You don’t have to capture tax reporting information at employee level for tax calculation purposes.

The payroll run assigns the main TRU for the organization to the newly hired employee and automatically creates the deduction card and association at the assignment level.

Assign Employee Details Using TRU Currency

Select this option if you have these requirements:
  • Your organization has employees who are in multiple countries and are paid in different currencies within a single legislative data group.
  • You don’t have a requirement to calculate employee taxes.

For each currency that you pay your employees, define a TRU within a payroll statutory unit.

The payroll run uses the salary basis currency of the employee to assign a TRU with the corresponding currency to the newly hired employee. For example, when an employee is assigned to a salary basis with a currency of USD, they are assigned to the TRU that also has a USD currency.

The run automatically creates the deduction card and association at assignment level.

Enter Employee Details

Select this option if you have a need to capture tax reporting information at employee level for tax calculation purposes.

During new hire manually assign a TRU, deduction card, and assignment association to an employee.