Oracle Payroll Cloud 2017 Implementation Essentials — Question 4

Which statement accurately describes how you create a tax reporting unit (TRU)?

Answer options

• A. When you identify a legal entity as a legal employer, the application transfers the legal reporting units that are associated with that legal employer to HCM as tax reporting units.
• B. When you identify a legal entity as a payroll statutory unit, the application transfers the legal reporting units that are associated with that legal entity to HCM as tax reporting units.
• C. You can identify a legal entity as a tax reporting unit.
• D. If you identify a legal entity as a payroll statutory unit, you will have the option to identify the payroll statutory unit as a tax reporting unit.

Correct answer: A

Explanation

The correct answer is A because it accurately describes the process of transferring legal reporting units to HCM when a legal entity is identified as a legal employer. Option B is incorrect as it refers to payroll statutory units, which do not directly transfer to HCM as tax reporting units. Options C and D are also incorrect as they do not accurately depict the correct procedure for creating a TRU.