Legal Reporting Units

A legal reporting unit (LRU) is the lowest level component of a legal structure that requires registration.

Use LRUs to group your workers for the purpose of tax and social insurance reporting or to represent a part of your enterprise with a specific statutory or tax reporting obligation. To use an LRU for tax reporting purposes, you must configure it as a tax reporting unit (TRU).

Use the Manage Legal Reporting Unit task in the Setup and Maintenance work area to define and configure an LRU.

The first time you create a legal entity as a payroll statutory unit (PSU), the task automatically creates an associated LRU, which you can then identify as a TRU.

When you create an LRU that belongs to a legal entity that's also a PSU, you can make the LRU a tax reporting unit (TRU) via the Manage Legal Reporting Unit HCM Information task. An LRU that belongs to a legal entity that's not a PSU can't be converted to be a TRU. Therefore, for China, multiple legal entities are mapped to one PSU, so create all the LRUs that need to be converted into TRUs under the legal entity that's also a PSU.

To define an LRU for China, you must:

What you want to do	How you do it
Create the LRU	Use the Manage Legal Reporting Unit task in the Define Legal Reporting Units for Human Capital Management work area to define and configure a legal reporting unit (LRU).
(Optional) Define contacts for the LRU for Record of Employment reporting	Use the Manage Legal Reporting Unit task to specify employer contact details at the LRU level.
Define the legal addresses	Use the Manage Legal Addresses task in the Workforce Deployment work area.
Specify registrations for the LRU	Use the Manage Legal Reporting Unit Registrations task in the Setup and Maintenance work area.
Set up the calculation card for the LRU	Use the Manage Legal Reporting Unit Calculation Cards task.
Designate the LRU as TRU	Use the Manage Legal Reporting Unit HCM Information task.