Creating Client Federal Entities

When SBEA features are enabled, you must have a client federal entity associated with each client FEIN serviced by your certified PEO. Tax liabilities accrue on client federal entities; these entities also determine relevant client tax limits during payroll calculations.

Client federal entities represent a separate level of reporting, different from the employer- and client-level reporting that otherwise exists in the system.

Relation to Client Entities

In most cases, a client federal entity is a reflection of one client record in your system. However, there are some exceptions:

• If multiple client records share the same FEIN, they would be associated with one client federal entity.
• If a client’s various worksite locations have their own FEINs, they would each need a different client federal entity.

Procedure

Note:  If your organization has just enabled the SBEA feature set and needs to set up client federal entities for the first time, there is a utility you can use: see Creating Client Federal Entities. After enabling the SBEA feature set, each new client record will automatically generate a new client federal entity.

To set up a client federal entity:

1. Open Employer|Change|Client Federal Entities from the Back Office menu .
2. Enter the numeric Entity ID. This can match the ID of the client to which it will be assigned (unless that number is already in use).
3. Enter the Entity Name.
4. Enter the nine-digit Federal EIN (employer identification number) assigned to the employer by the IRS. Use the format ##-#######.
5. Enter the address associated with the FEIN in the Address, City, State, and ZIP Code fields.

Users can indicate the time periods when the client company was in a certified relationship with the PEO, as defined by the SBEA.

6. In the SBEA Certified Relationship Periods panel:
• Enter the Starting Date when the client entered into a certified relationship with the PEO.
• Enter the Ending Date of the period during which the client was in a certified relationship with the PEO, if appropriate.
7. Click Save.