PeopleSoft Global Payroll for Japan 9.1 PeopleBook

Setting Up Insurance, Taxes, and Payslips

This chapter defines common tax and insurance elements and discusses how to:

View delivered elements.
Set up tax and insurance establishments.
Set up for social insurance processing.
Set up for inhabitant tax processing.
Set up payslips.

Common Elements Used in This Chapter

Object Year	Generally refers to the year for which you want to run a process or report. Sometimes the object year is not a calendar year, as in the case of labor insurance (April 1 of the previous year through March 31 of the object year) and inhabitant tax (June 1 of the object year through May 31 of the following year).
Tax Establishment	A company or a sub-organization of a company, such as a local office, that is responsible to collect (deduct) income and inhabitant tax from employees and to pay the tax to the income tax agency and municipalities.
Salary Payer	A salary payer is defined as a tax establishment.
Salary Payer Reference Number	The number assigned to the salary payer by the income tax agency.
Taxpayer Specification Number	The number assigned to the salary payer by the municipality.
Labor Insurance Establishment	A company or a sub-organization of a company, such as a local office, that is responsible to collect (deduct) labor insurance premiums from employees and to pay the premiums to the labor insurance agencies.
Social Insurance Establishment	A company or a sub-organization of a company, such as a local office, that is responsible to collect (deduct) social insurance premiums from employees and to pay the premiums to the social insurance agencies.

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Japan. Instructions for running the query are provided in the PeopleSoft Global Payroll 9.1 PeopleBook.

Setting Up Tax and Insurance Establishments

This section provides an overview of tax and insurance establishments and discusses how to:

Define tax establishments.
Define social insurance establishments.
Define labor insurance establishments.

Understanding Tax and Insurance Establishments

The Tax Establishment table holds the establishment numbers assigned by the income tax, social insurance, and labor insurance agencies. These numbers might apply to your entire organization or to parts of your organization. You must set up each establishment number and provide some additional data for each before you begin to process payrolls.

This chapter discusses how to define establishment IDs. Later chapters explain how to relate these establishment IDs to individual employees.

Pages Used to Set Up Tax and Insurance Establishments

Page Name	Definition Name	Navigation	Usage
Tax Establishment JPN	GPJP_TAX_ESTAB	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, Tax Establishment JPN, Tax Establishment JPN	Define tax establishments. Record the establishment numbers assigned to your organization by income tax agencies. Provide address and additional information related to each establishment.
Social Ins Establishment JPN (social insurance establishment)	GPJP_TAX_ESTAB2	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Social Ins Establishment JPN, Social Ins Establishment JPN	Define social insurance establishments. Record the establishment numbers assigned to your organization by the social insurance agencies. Provide address and additional information related to each establishment.
Labor Ins Establishment JPN (labor insurance establishment)	GPJP_TAX_ESTAB3	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Labor Ins Establishment JPN, Labor Ins Establishment JPN	Define labor insurance establishments. Record the establishment numbers assigned to your organization by the labor insurance agency. Provide address and additional information related to each establishment.

Defining Tax Establishments

Access the Tax Establishment JPN page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, Tax Establishment JPN, Tax Establishment JPN).

Details and Options

Calculation Method

Select whether this salary payer (income tax establishment) calculates income tax by the computer calculation or tax table lookup method when an employee's income tax type is KOU. Valid values are Computer and Table.

Year-End Adjustment Options

Perform Year-End Adjustment for whom Terminated in December	The default setting for this check box is deselected. Select this check box if your organization's policy is to perform the Year-End Adjustment for the payees who were terminated before the payment date in December.
Always Add Prior Employment Data	The default setting for this check box is selected. If you deselect this check box, the system does not include the sum of salary, withheld tax, the deducted Social Insurance premiums by the previous employer with the sum of those amounts from the current employer, if the payee, who terminates in mid-year, was judged not-subject to Year-End Adjustment.
Always Print Life/Non-Life Insurance Deduction Data	The default setting for this check box is selected. If you deselect this check box, the system does not print Life/Non-Life insurance deduction data on the Withholding Tax Report, if the payee, who terminates in mid-year, was judged not-subject to Year-End Adjustment.

Defining Social Insurance Establishments

Access the Social Ins Establishment JPN page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Social Ins Establishment JPN, Social Ins Establishment JPN).

Details and Options

Establishment Reference Nbr (establishment reference number)	Enter the number assigned to the establishment by the social insurance agency. This value is used for reporting purposes.
Empl Pension Fund Estab Nbr (employee pension fund establishment number)	Enter the number assigned to this establishment by the employee pension fund.
Establishment Number	Enter the establishment number assigned by the government.
Public Corporation	Select this option to indicate that members of this social insurance establishment work at a public corporation. When this option is selected and the payee has data on the social insurance dependent data table (GPJP_SC_DEP_DTA), the system will trigger a flag on the Enrollment report indicating that the Health Insurance Dependent report should be submitted.
Employees' Pension Fund	Select this option to indicate that the members of this social insurance establishment are enrolled in the employee pension fund. This field, in addition to the payee's sex, determines the type used for various SI reports.

Defining Labor Insurance Establishments

Access the Labor Ins Establishment JPN page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Labor Ins Establishment JPN, Labor Ins Establishment JPN).

Establishment Information

Title of Owner

Enter the establishment owner's title. This value is used for reporting purposes.

Details and Options

Labor Ins Establishment No	Enter the labor insurance establishment number for your establishment.
Calculation Method	Select whether this labor insurance establishment calculates labor insurance by the computer calculation or table lookup method. Valid values are Computer and Table.
Industry Type	Select whether this labor insurance establishment is a Type A, Type B, or Type B(Cs) (construction) industry.
Workers Comp Ins Rate	Enter the worker compensation insurance rate.
Round Up if >= 0.501	The default setting for this check box is deselected. If this check box is deselected, the system discards the fraction in the employment insurance premium regardless of the fraction amount. If you select this check box, the payee's contribution to employment insurance is rounded up if the fraction is greater than or equal to 0.50; it is rounded down if the fraction is less than 0.501

Setting Up for Social Insurance Processing

This section lists a prerequisite and discusses how to:

View standard remuneration grades.
Set up social insurance premium rates.

See Also

Managing Social Insurance

Prerequisite

Before setting up social insurance premium rates, you must define social insurance establishments.

See Setting Up Tax and Insurance Establishments.

Pages Used to Set Up Social Insurance Data

Page Name	Definition Name	Navigation	Usage
Rvw SI Std Remun Grades JPN (review social insurance standard remuneration grades)	GPJP_SC_STD_REMUN	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Rvw SI Std Remun Grades JPN, Rvw SI Std Remun Grades JPN	View the values and grades on the Monthly Standard Remuneration table.
SI Premium Rates JPN (social insurance premium rates)	GPJP_SC_EST_DATA	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, SI Premium Rates JPN, SI Premium Rates JPN	Set up social insurance premium rates. Enter the social insurance premium rates for each social insurance establishment.

Viewing Standard Remuneration Grades

Access the Rvw SI Std Remun Grades JPN page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, Rvw SI Std Remun Grades JPN, Rvw SI Std Remun Grades JPN).

View the information on the Monthly Standard Remuneration table, which the system uses to determine an employee's monthly standard remuneration amount and the grade for health insurance and pension insurance premium calculations.

Setting Up Social Insurance Premium Rates

Access the SI Premium Rates JPN page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Social Security / Insurance, SI Premium Rates JPN, SI Premium Rates JPN).

Enter the premium rates used to calculate employee and payer contributions for salary and bonus payments.

Round Up if >= 0.51

If this check box is selected, the payee's contribution to social insurance is rounded up if the fraction is greater than or equal to 0.51. If the check box is deselected, the amount is rounded up if the fraction is greater than or equal to 0.6.

See Also

Defining Calculation Elements

Setting Up for Inhabitant Tax Processing

This section provides an overview of the setup for inhabitant tax processing and discusses how to:

Associate municipality codes with salary payers.
Associate municipality codes with postal codes.

Understanding the Setup for Inhabitant Tax Processing

Here's how you set up for inhabitant tax processing:

Associate municipality codes with tax establishments and taxpayer specified numbers on the Municipality Table page.
Associate municipality codes with postal codes on the Postal Codes JPN page.
Define a file handle for each municipality's electronic file that you want to load directly into the PeopleSoft Inhabitant Tax table.

Use the File Handles JPN page.

You do not have to do this step if you load inhabitant tax amounts manually.

See Also

Managing Inhabitant Tax

Setting Up File Handles

Pages Used to Set Up Inhabitant Tax

Page Name	Definition Name	Navigation	Usage
Municipality Table JPN	GPJP_IH_MUNIC	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, Municipality Table JPN, Municipality Table JPN	Define municipality codes and associate them with salary payers. For each salary payer, record the taxpayer-specified number assigned by the municipality.
Postal Codes JPN	POSTAL_TBL_JPN	Set Up HRMS, Install, Product and Country Specific, Postal Codes JPN, Postal Codes JPN	Associate municipality codes with postal codes.
File Handles JPN	GPJP_FILE_HANDL	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Reports, File Handles JPN, File Handles JPN	Assign a handle to each external file that you want to import or export.

Associating Municipality Codes with Salary Payers

Access the Municipality Table JPN page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Taxes, Municipality Table JPN, Municipality Table JPN).

Salary Payer Reference Number

Select each income tax establishment associated with this municipality.

Taxpayer Specified Number

Enter the number assigned by the municipality to the salary payer for special collection.

Associate Municipality Codes with Postal Codes

Access the Postal Codes JPN page (Set Up HRMS, Install, Product and Country Specific, Postal Codes JPN, Postal Codes JPN).

Municipal Code

Select the municipal code to associate with this postal code.

Setting Up Payslips

This section provides an overview of payslip setup and discusses how to:

Define payslip positions.
Define payslip templates.
Associate payslip templates with pay groups.

See Also

Generating Payslips

Understanding Payslip Setup

Global Payroll for Japan enables you to set up payslips to accommodate variations that you may need for your organization.

Here's how you set up payslips:

Define the data element positions on your payslip forms by using the Template Positions JPN page.

The PeopleSoft system delivers a list of positions but does not maintain it. You can add positions if necessary.
Define payslip templates on the Templates JPN page.

Specify which element to display in which position on each template.
Assign payslip templates to pay groups and run types on the Link to Pay Group JPN page.

Pages Used to Set Up Payslips

Page Name	Definition Name	Navigation	Usage
Template Positions JPN	GPJP_PP_POSVAL	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Payslips, Template Positions JPN, Template Positions JPN	Define payslip positions. View and define all possible data positions on a payslip form or template by section, row, and column.
Templates JPN	GPJP_PP_TEMPLATE	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Payslips, Templates JPN, Templates JPN	Define templates to use in printing payslips.
Link to Pay Group JPN	GPJP_PP_PAYGROUP	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Payslips, Link to Pay Group JPN, Link to Pay Group JPN	Associate pay groups and run types with payslip templates.

Defining Payslip Positions

Access the Template Positions JPN page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Payslips, Template Positions JPN, Template Positions JPN).

Section

The number of the payslip section. For example, you might have separate sections for time data, earnings, deductions, and payments.

Row

The horizontal row of data within the section. The first row for a section is always 01.

Column

The vertical column of data. For each row, the columns are numbered 01 through 09.

Position

The concatenated section, row, and column. For example, position 010203 represents the position in the third column in the second row of the first section.

Adding Positions

The PeopleSoft system delivers a list of positions. Add positions by entering two-digit numbers in the Section, Row, and Column fields. You must add a row of data for each position. The system completes the Position field after you save the page or click Refresh.

Note. You can delete positions, but to maintain flexibility we recommend that you do not.

Defining Payslip Templates

Access the Templates JPN page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Payslips, Templates JPN, Templates JPN).

Payslip ID

The identifier of the template that you're defining.

Short Description

If you do not enter a short description, the system enters the first 10 characters of the Description field when you save the page.

Template Details

Position	Select the position of a field on your payslip form.
Entry Type	Select the type of element that you want to appear in the position: Earning, Deduction, Accumulator, or Variable. The report displays only the last value of a variable if the system encounters segmentation or slicing. Therefore, you must store any values that you want summed into an accumulator.
Element Name	Select from the elements that are valid for the element type that you selected.
Heading	Specify the label for this data on the payslip. If you do not enter a heading in this field, the system prints the first 10 characters of the element name in this field and on the payslip.

Associating Payslip Templates with Pay Groups

Access the Link to Pay Group JPN page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Payslips, Link to Pay Group JPN, Link to Pay Group JPN).

Pay Group

The pay group that you select when you enter the page. If you want a group of payees to have their own unique payslip templates, you must define them as a unique pay group. The system cannot generate payslips for a pay group if it does not have an entry in this page.

Run Type

Add a row for each run type. The system cannot generate payslips for a run type if it does not have an entry in this page.

Payslip ID

For each run type, select the payslip template to use when printing payslips.

Salary Payer Reference Number	Select each income tax establishment associated with this municipality.
Taxpayer Specified Number	Enter the number assigned by the municipality to the salary payer for special collection.

Section	The number of the payslip section. For example, you might have separate sections for time data, earnings, deductions, and payments.
Row	The horizontal row of data within the section. The first row for a section is always 01.
Column	The vertical column of data. For each row, the columns are numbered 01 through 09.
Position	The concatenated section, row, and column. For example, position 010203 represents the position in the third column in the second row of the first section.

Payslip ID	The identifier of the template that you're defining.
Short Description	If you do not enter a short description, the system enters the first 10 characters of the Description field when you save the page.

Pay Group	The pay group that you select when you enter the page. If you want a group of payees to have their own unique payslip templates, you must define them as a unique pay group. The system cannot generate payslips for a pay group if it does not have an entry in this page.
Run Type	Add a row for each run type. The system cannot generate payslips for a run type if it does not have an entry in this page.
Payslip ID	For each run type, select the payslip template to use when printing payslips.