Need a new company code for employees in another country?

Hi all,

I am a finance IT person, don't know too much about how the SAP payroll -HR is configured. Recently we received some requests to create some additional(dummy) company codes to facilitate payrolls in another country. Would like to verify if there is any other better way to handle this.

This is the situation: One of our company headquartered in the US and US Dollar is the company code currency. This company recently employed 5 empoyees in Taiwan. For some legal/tax reason that these 5 empoyees have to be paid in Taiwanese currency. For this reason we were told by HR IT folks that a new company code need to be created for Tainwan and define Tainwanese currency as local currency in this new company code to facilitate the payroll functions in SAP HR module. Would like to confirm how other global companies handle this. company codes are mapped to our "true" legal entities in our today's world, it became a big issue in our organization to create some dummy company codes to accomadate the system design need. Not sure if this is the common practice, is there any workaround?(not to create additional company codes?)

Your comments/suggestions are greatly appreciated.

Nancy