Define Legal Entities for Mexico

This topic demonstrates how you can define and set up a legal entity.

Setting up a legal entity includes:

• A legal entity

• Legal entity registrations

• Legal entity HCM information

Before You Start

Before you define a legal entity, you must have defined:

• A legislative data group (LDG) using the Legislative Data Groups task. The Legal Entities task automatically creates the LDG for you and associates it with the PSU. If you have already defined an LDG, you can manually associate it with the PSU.

• A legal address for the legal entity you're about to define

• The required jurisdictions for the legal entity you're about to define

Create a Legal Entity

To create a legal entity:

1. In the Setup and Maintenance work area, go here:

   • Offering: Workforce Deployment

   • Functional Area: Legal Structures

   • Task: Define Legal Entities for Human Capital Management

   Expand the task to display a list of related tasks.

2. Select the Select Scope link for the Legal Entities task.

3. On the Select Scope window select Create New in the Legal Entity field.

4. Click Apply and Go to Task.

5. On the Legal Entities page, click Create.

   • Enter the RFC in the Legal Entity Identifier field. An example of the format is OME910101TA3.

     Note: RFC is the Federal Taxpayers Registry. It's the tax registration number that's assigned to taxpayers by the Mexican tax authority.

   • Select the Legal Employer check box.

   • If this entity is also a payroll statutory unit (PSU), select the Payroll Statutory Unit option. If this entity belongs to an existing PSU, select a PSU from the Payroll Statutory Unit field.

   • The type of registration information required is based on the Registration Code Assignment information you defined when you created the selected jurisdiction. For example, for the jurisdiction of Mexico Federal Tax, enter the RFC assigned by the Mexico Government Agency in the Legal Entity Registration Number field.

6. Click Save and Close.

Define Legal Entity Registrations

The application automatically creates the registration with the identifying jurisdiction you select when you create a legal entity. The registrations defined at the legal entity-level represent the accounts for remitting and reporting federal tax and income tax deductions. If the legal entity interacts with other legal authorities, you must create additional registrations as appropriate.

Before you create the registrations for the legal entity you have created, set the scope for the tasks related to the legal entity.

Note: If the scope is already set for the task, the Scope column displays the legal entity name.

To set the scope and define the legal entity registration:

1. Set the scope for this task as follows:

   1. In the Setup and Maintenance work area, go here:

      • Offering: Workforce Deployment

      • Functional Area: Legal Structures

      • Task: Define Legal Entities for Human Capital Management

      Expand the task to display a list of related tasks.

   2. Click the Select Scope link for the Legal Entities for Human Capital Management task.

   3. On the Select Scope window, select Legal Entity and then Select and Add in the Legal Entity field.

   4. Click Apply and Go to Task.

   5. On the Select and Add: Legal Entity page, select the legal entity and click Save and Close.

2. Select Go to Task for the Legal Entity Registrations task.

3. Click Create.

4. Enter the required information on the Create Registration page, noting these aspects:

   • When you select a jurisdiction, the Territory field is populated automatically.

   • The Issuing Legal Authority field displays a list of all legal authorities associated with the selected jurisdiction.

   • The Registered Address field displays a list of all predefined legal addresses.

   • Enter the Legal Entity Registration Number. For example, for the jurisdiction of Mexico Federal Tax, enter the RFC assigned by Mexico Government, in the Legal Entity Registration Number field. An example of the format is OME910101TA3.

5. Click Save and Close.

Define Legal Entity HCM Information

To define HCM information for the legal entities you have created:

1. In the Setup and Maintenance work area, go here:

   • Offering: Workforce Deployment

   • Functional Area: Legal Structures

   • Task: Define Legal Entities for Human Capital Management

     Expand the task to display a list of related tasks.

2. Click the Select Scope link for the Legal Entity HCM Information task. Set the scope for this task as given in the previous task.

3. Click Go to Task for the Legal Entity HCM Information task.

4. Click Edit, and select Correct.

5. If the legal entity is an employer, complete the fields on the Legal Employer tab, noting these aspects:

   • Select the wanted Employment Model. Mexico supports all delivered employment models.

   • Ensure that every Legal Employer under a single PSU is configured similarly.

     Note: The two-tier model meets the standard Mexico business practices.

6. If this entity is a PSU, select the Payroll Statutory Unit tab.

7. Enter the Fiscal Year Start date, and select the Associated Legislative Data Group.

   Note: You must associate the legislative data group at the PSU level.

8. Click Submit.