How Payroll Relationships Affect Limit Taxes

A payroll relationship is the association between a person and a payroll statutory unit (PSU). It represents the highest level of balance aggregation.

Employees working in multiple tax reporting units (TRUs) under the same PSU would have a single payroll relationship. The payroll process would have access to payroll relationship-level balances that span multiple TRUs through their parent PSU.

Employees working in multiple PSUs must have multiple payroll relationships, one for each. In these cases, their person-level balances can't span across their payroll relationships.