Which statement correctly describes payroll statutory units (PSU)?

• A. A PSU is a synonym for a legal employer.
• B. PSUs are legal entities responsible for payroll tax and social insurance reporting.
• C. A legal entity cannot be both a PSU and a legal employer.
• D. A PSU is a payment method.

Answer: (B)

Payroll statutory units are the legal entities responsible for payroll tax reporting and social insurance contributions. They are the units recognized by authorities for remitting taxes and for reporting payroll data to tax agencies and social security bodies. In multi-jurisdiction payroll, a single legal entity can have multiple PSUs to cover different tax jurisdictions, each with its own registration, rates, and reporting requirements. A PSU is not the same as the legal employer, which is the entity that pays employees; nor is it a payment method. The PSU’s role is specifically about statutory reporting and tax/insurance compliance, which is why this description best fits what a PSU represents.