Which organization type groups workers based on a Tax ID?

Prepare for the Workday Human Capital Management (HCM) Exam with extensive quizzes and multiple choice questions. Each question comes with hints and detailed explanations to ensure your readiness!

The correct answer is the Company. In Workday Human Capital Management, a Company is defined as an organization that is capable of employing workers and is usually established for legal and tax purposes. Each company typically has its own unique Tax Identification Number (Tax ID) which is crucial for tax reporting, compliance, and other financial activities. Grouping workers based on a Tax ID allows for proper management of payroll, benefits, and taxation in accordance with jurisdictional requirements.

The other options do not serve the same purpose with respect to Tax ID association. An Operational Unit often refers to a specific function or department within a company rather than a legal entity with its own Tax ID. A Corporate Entity is a broader term that can encompass multiple companies but does not directly relate to the specific grouping of workers. A Managerial Group is focused on the hierarchy and management relationships within the organization without regard to legal or tax implications. Thus, the Company is the appropriate organizational type for grouping workers based on Tax IDs.

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