Prerequisite Tasks for Payroll Setup for the US

The Define Payroll task list in your implementation project contains most of the set up tasks required for payroll processing. However, you must first complete the required common application configuration tasks.

Note: You may have already done some of these tasks because other HCM applications require them. Revisit these tasks to address any payroll-specific requirements, such as creating tax reporting units (TRUs).

Perform the prerequisite tasks in these task lists within Define Common Applications Configuration for Human Capital Management.

What you need to do	How you do it
Select the correct product for each of your legislations and ensure that the appropriate features work correctly in your implementation	Use the Define Features by Country or Territory task.
Install and load Vertex geography and tax info data files	Run the following tasks. Load Geographies for US Load Payroll Tax Information for US For further info, see the following in the Help Center. Manage Geography Info for the US Load Payroll Tax Info for the US
Verify predefined geographies, and define any additionally required local geographies	Use the Geographies task. For further info, see the following in the Help Center. Geography Validation for the US Manage Geography Info for the US Load Payroll Tax Info for US
Define your HCM enterprise structures	This includes defining your legal jurisdictions, payroll statutory units (PSUs), TRUs, and so on.

For further info, see the following sections.

Define Features by Country or Territory

Use the Manage Features by Country or Territory task to select the correct product type and ensure that the appropriate features work correctly in your implementation. These settings control the availability of payroll-related features, such as element templates, and address style and address validation rules used in processes and reports.

For further info, see Country Extensions for the US in the Help Center.

Define Enterprise Structures for HCM

Complete tasks in the task lists shown in this table.

What you need to run	What it does
Define Legal Jurisdictions and Authorities for HCM	Several predefined jurisdictions are provided for your use including: United States Federal Tax <state> Disability Insurance <state> Income Tax <state> Unemployment Insurance Define other jurisdictions as required, depending on the states in which you operate. For more info, see Jurisdictions for the US in the Help Center. Create a legal authority for each government body you interact with. Create addresses for legal entities and legal authorities. For further info, see Overview of Legal Reporting Unit Configuration for the US in the Help Center.
Define Legal Entities for HCM	Create a legislative data group for each country or territory you operate in, to partition your payroll data. For further info, see Legislative Data Groups for the US in the Help Portal. Create at least one legal entity designated as a PSU for each legislative data group. For further info, see the Define Legal Entities for the US in the Help Center. Associate each PSU with a legislative data group. Create calculation cards for statutory deductions for each PSU. For further info, see Configure Organization Calculation Cards for the US in the Help Center.
Define Legal Reporting Units for HCM	Create any additional legal reporting units that you need under a PSU and designate them as TRUs. For further info, see Define Tax Reporting Units for the US in the Help Center. Define the TRUs as reporting establishments as needed. For further info, see Options for Identifying Legal Reporting Units as Reporting Establishments in the Help Center. Optionally, create calculation cards for statutory deductions for each TRU. For further info, see Overview of Legal Reporting Unit Configuration for the US in the Help Center.
Define Business Units for HCM	Create business units that you can use to perform one or more business functions.
Define Chart of Accounts for Enterprise Structures	Create business units that you can use to perform one or more business functions.
Define Accounting Configurations for HCM	Create charts of accounts, ledgers, and accounting calendars. When you create a bank for a payment source, you must select a legal entity that's assigned to a ledger for the associated legislative data group. Payroll costing also requires these financial components.