In a single legal entity relationship, which entity is designated as the legal entity?

• A. Related company
• B. Master entity
• C. Managing company
• D. All companies

Answer: (C)

In this setup, the legal obligations for payroll, taxes, and regulatory reporting are tied to one entity—the managing company. The managing company is designated as the legal entity because it represents the actual employer for statutory purposes and handles the required filings and payments. Other entities in the relationship may exist for operational or structural reasons, but they do not carry the legal entity status for payroll.

A related company isn’t the legal entity; a master entity is typically a data or structural construct rather than the designated legal employer in this context; and having “all companies” as the legal entity isn’t feasible when a single legal entity is required.