This article reviews the steps to enable a new legal entity for use in R365 Payroll.
Requesting a New Payroll Company for Payroll
To be active in payroll, a legal entity must to be connected to a payroll company. Each payroll company is associated with a single EIN. If the legal entity is part of a payroll common payer setup in accounting, please include that information when contacting your account executive.
Please allow 10 weeks to complete the new payroll company and legal entity setup prior to the expected first payroll date.
Contact your account executive to inform them that you need to add a legal entity/payroll company for use with payroll. If you do not have the contact information for your account executive, R365 Support can provide that information.
Provide your account executive with the following information:
Tax contact name
Tax contact phone and email
EIN
Pay cycle
The legal entity will be connected to the new payroll company by the Payroll Framework Team.
Adding a New Legal Entity to R365
Before a legal entity can be activated for R365 Payroll, a Legal Entity record must be created. Legal Entity Records can be created via the Restaurant365 Setup Assistant. Once the desired Legal Entity Record is created, the legal entity can be configured for use in Accounting and Operations.
Setting up a Legal Entity for Use in Payroll
Once the desired legal entity has been connected to a payroll company, your Payroll Coach will guide you through the implementation and setup for the new legal entity, including: user setup, location setup, tax setup, Pay Run setup, GL Account mapping, and funding account setup.
Changes to common payer settings after employees are onboarded can cause payroll and accounting disruptions. Only make changes when absolutely necessary.
Payroll Users Setup
Grant payroll Permissions to Payroll users.
Contact R365 Support and request that users be granted access to the new payroll company. Learn more about payroll user setup here.
Location Setup
Add locations associated with the legal entity that will be used for payroll. How locations are added depends on whether Location Sync is enabled for your account.
If Location Sync is enabled
Locations sync automatically from R365 to the payroll provider within 1–2 minutes — no manual location creation is required. Ensure each location record in R365 includes a SmartyStreets-validated address: use a 2-letter state abbreviation and a 5-digit ZIP code. Manage all locations in R365 → Locations. If the R365 Payroll Locations page is read-only, all location changes must be made in R365 → Locations.
If Location Sync is not enabled
Manually add each location to the R365 Payroll Locations page. Learn more about adding locations to R365 Payroll.
Tax Setup
Confirm tax contact details on the Company Tax Profile page. Please contact R365 Support for assistance with updating tax contact details.
Confirm that the jurisdictions and tax filing frequencies for the location have been added to the Company Tax Profile page. Please contact R365 Support for assistance with jurisdiction configuration.
Confirm that the state unemployment insurance rates for all locations associated with the legal entity have been added to the Company Tax Profile page. When a new state is associated with a payroll company, R365 will reach out to the tax contact on file to request SUI rate information. It is the responsibility of the payroll company to supply R365 with accurate SUI rate information.
Funding Account Setup
Configure the payroll company's funding account on the Account page in Payroll. This is the bank account that will be used for all payroll funding transactions.
Pay Run Setup
Confirm the pay cycle frequency on the Account page in Payroll.
Confirm that the legal entity's operational calendar aligns with the payroll company's pay period.
Indicate on the Legal Entity Record if tips should be included in payroll.
Complete GL account mapping.
If Print and Ship is enabled, confirm the default payroll check account and shipping preferences on the Legal Entity Record. For more information on enabling Print and Ship, please contact your CSM.