Define Legal Entities

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

Setting up a legal entity for Canada includes defining the following:

• A legal entity

• Legal entity registrations

• Legal entity HCM information

• Workers' Compensation information

• Provincial Medical information

Before You Begin

Before you define a legal entity, you must:

1. Define a legislative data group (LDG) for Canada using the Manage Legislative Data Groups task. The Manage 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.

2. Use the Manage Legal Addresses task to define a legal address for the legal entity you're about to define.

3. Define the required jurisdictions for the legal entity you're about to define.

How to Create a Legal Entity

To create a legal entity:

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

   • 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 Manage 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 Manage Legal Entities page, click Create.

6. On the Create Legal Entity page, complete the fields as appropriate for this entity, noting the following:

   • Select Canada in the Country field.

   • Enter the Canada Revenue Agency Employer Account Number in the Legal Entity Identifier field.

   • 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 Canada Federal Tax, enter the Employer Account Number assigned by the Canada Revenue Agency. Enter the number in both the Legal Entity Registration Number field and the Employer Account Number field.

     Note: When you enter the Employer Account Number, ensure that there are no spaces between the numbers and the two letters in the number. An example of the format is 123456789RP0001.

7. Click Save and Close.

How to Define Legal Entity Registrations

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 to the following:

      • 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 Manage Legal Entity Registrations task.

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

   4. Click Apply and Go to Task.

   5. In the Select and Add: Legal Entity page, search for and select the legal entity you just created.

   6. Click Save and Close.

   The Scope column on the task list page displays the legal entity you selected as the scope for those tasks related to the legal entity.

2. Click Go to Task for the Manage Legal Entity Registrations task.

3. Click Create.

4. On the Create Registration page, enter the required information noting the following:

   • When you select a jurisdiction, the Territory field is populated automatically. For example, if you select Quebec Provincial Tax, the territory is shown as Quebec.

   • 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 Quebec Provincial Tax, enter the Quebec Identification Number assigned by Revenu Québec in the Legal Entity Registration Number field. An example of the format is 1234567890RS0001.

5. Click Save and Close.

How to 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 to the following:

   • 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 Manage Legal Entity HCM Information task. Set the scope for this task as given in the previous task.

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

4. Click Edit, and then select Correct.

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

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

6. To submit Employment Equity information, click Federal Legal Employer Information.

   • Select the NAICS Code from the list of values for this legal entity.

7. If this entity is a payroll statutory unit, select the Payroll Statutory Unit tab.

8. Click Payroll Statutory Unit Details.

9. Enter the Fiscal Year Start Date, and select the Associated Legislative Data Group.

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

How to Define Workers' Compensation Details

To define Workers' Compensation details:

1. Click the name of a province, say Ontario, to view and capture Workers' Compensation information.

2. Click Add Row to enter Workers' Compensation information.

3. Enter the Account Number and Account Name associated with the Workers' Compensation Board of the province.

4. Select the Default Account check box if this is the default account for the province or board.

   Only one account per province can be set as the default.

5. Enter the Classification Unit and the Classification Unit Description.

6. Enter the workers' compensation Rate.

   Note: A classification unit can't have two different rates for the same province. If a province has two different rates, define two different classification units.

7. Select the Default Rate check box.

   Only one rate can be set as the default per account.

How to Define Provincial Medical Details

To define Provincial Medical details:

1. Click Add Row in the Ontario Provincial Medical Account Details section, to enter the provincial medical information.

   Provincial Medical is applicable only to the provinces of British Columbia, Ontario, Manitoba, Newfoundland and Labrador, and Quebec.

2. Enter the Account Number and Account Name associated with the Provincial Medical Carrier of Ontario.

3. Select the Default Account check box if this is the default account for the province or the carrier.

   Only one account per province can be set as the default.

4. Enter the Starting Annual Payroll and Ending Annual Payroll dates.

5. Enter the provincial medical Rate.

   For the province of Quebec, capture only the rate. The account number and name aren't required for Quebec as the provincial medical account number is the Quebec Identification Number (QIN). The payment range details are read-only, with the Starting Annual Payroll set to 0 and the Ending Annual Payroll set to 999,999,999,999.99. The value you enter in the Rate field is used for employer liability calculations.

6. Click Submit.

How to Define ROE Occupation Information

Define the job name or position name as the employee's occupation at the Payroll Statutory Unit (PSU) level to specify if the ROE Occupation (Block 13) reports the employee's job or position..

To enter the ROE occupation information, access the Payroll Statutory Unit Details region using the Manage Legal Entity HCM Information task located in the Setup and Maintenance work area. Select Job Name or Position Name from the list of values for the Record of Employment Occupation field in the Record of Employment Occupation section. If a selection isn't made, the job name is reported.