PeopleSoft Global Payroll for Japan 9.1 PeopleBook

Preparing Year-End Adjustment

This chapter provides an overview of year-end adjustment (YEA) and discusses how to:

Print the Dependent Deduction report and the Insurance and Spouse Special Deduction report.
Enter deduction data for the Year-End Adjustment (YEA).
Prepare for YEA reporting.
Run Year-End reports.

Understanding YEA

Global Payroll for Japan provides rules that satisfy statutory and business requirements for calculating and reporting YEA on the final salary or bonus payment. In addition, it provides rules for calculating and reporting independent YEA when an event that affects a payee's annual income tax occurs after the YEA adjustment.

When you run the YEA process on the final salary or bonus, the system calculates for each payee the difference between income tax that is withheld and the income tax on actual earnings and settles this tax difference in the final payment of the year. For independent YEA processing, where the tax difference represents an underpayment of income tax, the system carries over the tax difference as a deduction to be taken in the first payment of the following object year. If the tax difference represents excess withholding of income tax, the excess amount is refunded to the payee at year end. You can carry over this amount to the next year.

This section discusses:

Delivered YEA elements.
Viewing delivered elements.
Tax difference carryover for independent YEA.
YEA reports.
Self-service YEA data collection.
YEA data collection through printed reports.

Delivered YEA Elements

Global Payroll for Japan delivers these elements for processing year-end adjustments:

Deduction elements YE TAX DIF and YE TXDIF CY.

YE TAX DIF represents the tax difference amount that the system calculates during YEA processing. YE TX DIF CY represents the tax amount difference that is carried over to the next year for employees who are subject to independent YEA processing.
Process lists, JPRADJSAL, JPRADJBON, and JPRADJIND.

Use the applicable payroll process list to run the YEA process for salary or bonus, or for independent YEA adjustments.

Viewing Delivered Elements

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

See Also

Viewing Delivered Elements

Tax Difference Carryover for Independent YEA

When the tax difference that is calculated for an independent YEA represents an underpayment of income tax, the system uses the deduction element, YE TXDIF CY, to carry over the difference to the next object year. When you run the regular payroll process for January (using process list JPRSAL), the system deducts the amount from the payee's earnings. If the tax difference is greater than the payee's earnings in January or cannot be deducted from the January salary, the tax difference is carried over to the next month, until the deduction is taken.

By default, refunds are not carried forward but are paid to employees in the last payment of the year. To carry over refunds, set the value of variable YE VR CYOVR FLG to 1 (one).

The system reports the tax difference that is carried over on the YEA payslips, the Withholding Tax Register report, and the Tax Difference Carried Over from the Previous Year report.

YEA Reports

After year-end adjustments are complete and you prepare your data tables, you can generate these reports to complete the YEA business process:

Withholding Tax report (GPJPYE01).
Withholding Tax/Wage Payment report (GPJPYE01).
Legal Payment Summary report (GPJPYE02).
Wage Payment Summary report (GPJPYE03).
Tax Difference Carried Over from the Previous Year report (GPJPYE06).

Self-Service YEA Data Collection

Global Payroll for Japan supports both a paper exchange method and a self-service method for collecting YEA data from employees.

If your organization licenses PeopleSoft ePay and PeopleSoft eProfile, you can collect YEA data from employees through self-service pages. The process for collecting and reviewing self-service YEA data includes these steps:

The payroll administrator specifies the time period in which employees can update data through the self-service transaction.
Employees access a main YEA Information page in ePay.

From that page, they access other pages where they can review and update this YEA data:
- Employee tax information, such as head of household and disability information.
- Employee personal data information, such as name, address, and birth date. (Available only if your organization also licenses eProfile.)
- Dependent tax information, such as relationship and disability types.
- Life insurance and personal pension insurance information.
- Nonlife insurance, social insurance, and small enterprise mutual aid insurance information.
- Spouse special deduction information.
- Housing loan special deduction information.
Payroll administrators review the data and accept it or notify the employee to revise it.
(Optional) The payroll administrator prints the Dependent Deduction report and Insurance and Spouse Special Deduction report for record-keeping purposes.

YEA Data Collection Through Printed Reports

Payroll administrators perform the following steps to collect YEA data using printed reports:

Print and distribute the following two forms on which employees manually enter their YEA data:
- Dependent Deduction report.
- Insurance and Spouse Special Deduction report.
Collect the completed forms from employees.

Use these forms to enter data into Global Payroll for Japan income tax and YEA tables.

Retain the completed forms for record-keeping purposes.

Printing the Dependent Deduction Report and Insurance and Spouse Special Deduction Reports

This section provides an overview of the Dependent Deduction report and Insurance and Spouse Special Deduction reports, lists common elements, and discusses how to:

Run the Dependent Deduction report.
Run the Insurance and Spouse Special Deduction report.

Understanding Dependent Deduction and Insurance and Spouse Deduction Reports

The data collection method that you use determines when you run these reports and what they contain.

Data Collection Through Printed Reports

Use these reports to collect the data that you later enter into the system manually:

Dependent Deduction report.

This report prints the current employee and dependent information, which the employee can modify if a correction or update is needed.
Insurance and Spouse Special Deduction report.

This report prints the basic employee information only.

For record-keeping purposes, you can retain the reports that are submitted by employees.

Self-Service Data Collection

With self-service data collection, you can print the reports for record-keeping purposes after employees have updated their data. The reports gather data from the tables on which the self-service data is stored in the system.

Common Elements Used in This Section

Print Options	Select the Print Bus (business) Unit and Location check box to print the business unit and location on the report. This information appears at the bottom of the report.
Sort Order	Select the sort order in which you want the report to print. Options include Business Unit, Location Code, Department, and Supervisor Level ID.

Pages Used to Print the Dependent Deduction and Insurance and Spouse Special Deduction Reports

Page Name	Definition Name	Navigation	Usage
Report YEA Dependent Ded JPN (report year-end adjustment dependent deduction Japan)	GPJP_RC_YEA04	Global Payroll & Absence Mgmt, Year-End Processing, Report YEA Dependent Ded JPN, Report YEA Dependent Ded JPN	Run the Dependent Report YEA (GPJPYE04). For manual data collection, print the report and distribute it to employees for review and update. For self-service data collection, print the report for record-keeping purposes after employees have updated their data in the ePay and eProfile transactions.
Report YEA Ins and Spous JPN (report year-end adjustment insurance and spouse Japan )	GPJP_RC_YEA05	Global Payroll & Absence Mgmt, Year-End Processing, Report YEA Ins and Spouse JPN, Report YEA Ins and Spous JPN	Run the YEA - Ins and Spouse report (GPJPYE05). For manual data collection, print the report and distribute it to employees for review and update. For self-service data collection, print the report for record-keeping purposes after employees have updated their data in the ePay transaction.
Payee List	GPJP_RC_YEA_SEC	Click the Payee List link on the Report YEA Dependent Ded JPN page or the Report YEA Ins and Spous JPN page.	Select individual employees to report. Do not use this page in conjunction with other employee selection criteria.

Running the Dependent Deduction Report

Access the Report YEA Dependent Ded JPN page (Global Payroll & Absence Mgmt, Year-End Processing, Report YEA Dependent Ded JPN, Report YEA Dependent Ded JPN).

Object Year

This field determines the date for which report data is retrieved. The Dependent Deduction report is based on information as of the last day of the object year. So if you enter 2004 in this field, the report is based on data that was in effect on December 31, 2004.

The exception to this rule is the payee's address, which is retrieved as of the first date of the object year. So if the object year is 2004, the as of date for the address is January 1, 2004.

Running the Insurance and Spouse Special Deduction Report

Access the Report YEA Ins and Spous JPN page (Global Payroll & Absence Mgmt, Year-End Processing, Report YEA Ins and Spouse JPN, Report YEA Ins and Spous JPN).

Object Year

If ePay is not installed, this field determines the date for which report data is retrieved. The Insurance and Spouse Special Deduction report is based on information as of the last day of the object year. So if you enter 2004 in this field, the report is based on data that was in effect on December 31, 2004.

If ePay is installed, the system uses the date that is entered in the As of Date field on the Year End Adjustment Self Service Setup page to retrieve data for the report.

YEA Status

This group box appears only if ePay is installed. Select the appropriate status for the year-end adjustment: Submitted, Approved, or Sent to Payroll.

Entering Deduction Data for the Year-End Adjustment (YEA)

This section provides overviews of deduction data entry for YEA and manual adjustments to YEA data for multiple jobs and discusses how to:

Load self-service deduction data.
Enter YEA deduction data and editing YEA type.
Enter prior employment data.
Enter employee tax deduction data that is collected by reports.
Enter dependent tax deduction data that is collected by reports.

Understanding Deduction Data Entry for YEA

Before processing the YEA reports, you must enter deduction information for YEA into the GPJP_YEA_PYEADJ table and ensure that data in the GPJP_IT_PYE_TAX and GPJP_IT_DEP_TAX tables is up-to-date.

Much of this data is collected through either the self-service or the manual method of YEA data collection. The method of entering the data differs according to the collection method.

Note. Even if you use data that is collected through the self-service pages, you must still access the YEA Adj Data (year-end adjustment data) page if you need to edit the employee's YEA type. You must also access the Prior Employment page to enter prior employment data.

This table lists how the tables for each method of data collection are updated:

Data and Payroll Table That Is Loaded	Self-Service Method	Manual Method
Employee tax deduction data on (GPJP_IT_PYE_TAX)	Automatically updated when the employee saves information that is entered on the Employee Tax Information self-service page.	Collected on the Dependent Deduction report and manually entered on the Maintain Income Tax Data JPN page (GPJP_IT_PYE_TAX).
Dependent tax deduction data on (GPJP_IT_DEP_TAX)	Automatically updated when the employee saves information that is entered on the Edit Dependent Tax Information self-service page.	Collected on the Dependent Deduction report and manually entered on the Maintain Dep Tax Data JPN page (GPJP_IT_DEP_TAX).
Insurance, spouse, and housing loan special deduction data on (GPJP_YEA_PYEADJ)	Run the Load YEA Self Service Data process (GPJP_YEASSLD), which loads data that is entered by employees on the Employee Personal Information and insurances and deductions self-service pages.	Collected on the Insurance and Spouse Special Deduction report and manually entered on the YEA Data page (GPJP_YEA_PYEADJ).

Tax Withholding and Year-End Adjustment Rule Changes

The Japanese government introduced a new benefit system where parents with children get payment from the government in proportion to the number of their children aged 15 or under. It also started funding high schools so that they can make tuition fees free of charge (public schools) or decrease the fee (private schools with higher fees).

In compensation for these new benefits, income deductions for parents with children aged 15 were repealed, effective January 1st, 2011. As of this same date, parents with children aged 16~18 will enjoy smaller amount of income deduction. That is, children aged 16~18 are no longer classified as Specified Dependent, but are regarded as Ordinary Dependents.

To accomplish this PeopleSoft created a new SQL view called GPJP_IT_DEP_VW. This SQL view joins GPJP_IT_DEP_TAX and DEP_BEN.

In array element IN AR DEPENDENTS the record name was changed from GPJP_IT_DEP_TAX to the GPJP_IT_DEP_VW SQL view. BIRTHDATE was added as the retrieved item. BIRTHDATE was not on this array because there was no reason to evaluate a dependents’ age for tax withholding before this new legal requirement:

Understanding Manual Adjustments to YEA Data for Multiple Jobs

When an employee has multiple jobs, YEA Report Data JPN is loaded for each employment record independently. The data is always loaded using the tax type that was in effect as of the payment date for the year-end adjustment process. When the tax type changes during the year, you may need to make a manual adjustment on the Prior Employment page so that the system bases the year-end adjustment and Withholding Tax report on the proper salary amount.

Example: Employee is Paid from One Employment Record Each Month

As an example, assume that an employee's salaries were paid from Empl Rec Nbr 0 (employment record number 0) for every month except May through August when salaries were paid from Empl Rcd Nbr 1 as shown in this table:

Empl Rcd #

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sept

Oct

Nov

Dec

Kou

Assume that the payment date is December 30. Because the employee's tax type as of this date is Kou, as long as the employee meets other conditions that are required for the year-end adjustment, the adjustment is processed on Empl Rec Nbr 0. The year-end adjustment is based on the salaries that were paid for Empl Rec Nbr 0 from January to April and from September to December, and the Withholding Tax report is printed.

To include salaries that were paid from May to August for Empl Rcd Nbr 1 in the year-end adjustment purposes, you must access the Prior Employment page for Empl Rcd Nbr 0 and enter the salaries and deductions for Empl Rcd Nbr 1 before you run the year-end adjustment process for Empl Rec Nbr 0.

Pages Used to Enter Deduction Data for YEA

Page Name	Definition Name	Navigation	Usage
Load YEA Self Service Data JPN (load year-end adjustment self service data Japan)	GPJP_RC_YEALOAD_SS	Global Payroll & Absence Mgmt, Year-End Processing, Load YEA Self Service Data JPN, Load YEA Self Service Data JPN	Load self-service deduction data. Payroll administrators run the Load YEA Self Service process (GPJP_YEASSLD) to load updated self-service employee personal data, life and nonlife insurance, and spouse and housing loan deduction information into the YEA Adj Data table and the corresponding page (GPJP_YEA_PYEADJ).
Payee List - Load YEA Self Service Data JPN	GPJP_RC_YEA_SEC	Click the Payee List link on the Load YEA Self Service Data JPN page.	Select individual employees to load their data.
YEA Data (year-end data)	GPJP_YEA_PYEADJ	Global Payroll & Absence Mgmt, Payee Data, Taxes, Maintain Year-End Adj Data JPN, YEA Data	Enter deduction data (housing acquisition deduction, insurance, and spouse deduction) and edit YEA type. Indicate whether employees are subject to adjustment.
Prior Employment	GPJP_YEA_PYEPRI	Global Payroll & Absence Mgmt, Payee Data, Taxes, Maintain Year-End Adj Data JPN, Prior Employment	Enter prior employment data, such as income, tax, social insurance premium, and the prior employer's name and address.
Maintain Income Tax Data JPN	GPJP_IT_PYE_TAX	Global Payroll & Absence Mgmt, Payee Data, Taxes, Maintain Income Tax Data JPN, Maintain Income Tax Data JPN	Enter the salary payer number and employee tax deduction information that is collected by report, such as employee type and disability type.
Maintain Dep Tax Data JPN	GPJP_IT_DEP_TAX	Global Payroll & Absence Mgmt, Payee Data, Taxes, Maintain Dep Tax Data JPN, Maintain Dep Tax Data JPN	Enter spouse or dependent deduction information that is collected by the report, such as disability type.

Loading Self-Service Deduction Data

Access the Load YEA Self Service Data JPN page (Global Payroll & Absence Mgmt, Year-End Processing, Load YEA Self Service Data JPN, Load YEA Self Service Data JPN).

See Loading YEA Self-Service Deduction Data.

Entering YEA Deduction Data and Editing YEA Type

Access the YEA Data page (Global Payroll & Absence Mgmt, Payee Data, Taxes, Maintain Year-End Adj Data JPN, YEA Data).

YEA Type (year end adjustment type)

Select a value to indicate whether the employee is subject to income tax adjustment. The default is Subject. Select Not Subject to exclude the employee from the YEA process.

Entering Prior Employment Data

Access the Prior Employment page (Global Payroll & Absence Mgmt, Payee Data, Taxes, Maintain Year-End Adj Data JPN, Prior Employment).

Use this page to enter earning and deduction data from previous employers.

Entering Employee Tax Deduction Data That Is Collected by Report

Access the Maintain Income Tax Data JPN page (Global Payroll & Absence Mgmt, Payee Data, Taxes, Maintain Income Tax Data JPN, Maintain Income Tax Data JPN).

See Also

Preparing for Income Tax Withholding

Entering Dependent Tax Deduction Data That Is Collected by Reports

Access the Maintain Dep Tax Data JPN page (Global Payroll & Absence Mgmt, Payee Data, Taxes, Maintain Dep Tax Data JPN, Maintain Dep Tax Data JPN).

See Also

Preparing for Income Tax Withholding

Preparing for YEA Reporting

This section provides an overview of YEA Report Data JPN preparation and discusses how to:

Update municipality codes and recipient numbers.
Load YEA Report Data JPN.
View and update the YEA data table.

Understanding YEA Report Data JPN Preparation

The Load YEA Table Application Engine process (GPJP_YEALOAD) loads an intermediate table that contains most of the data that is necessary for these reports: withholding tax, wage payment, legal payment summary, and withholding tax register.

Regardless of whether you use the self-service or manual method of collecting data, follow this sequence when preparing to report YEA data:

Update employee addresses if necessary.

If you collect YEA data through self-service transaction, you accomplish this step using the Employee Personal Information page and the Load YEA Self-Service Data process (GPJP_YEASSLD).
Run the Pre-Load Inhabitant Tax process (GPJP_IHMUN1) to preload municipality codes to the Inhabitant Tax table.
Update employee recipient numbers, if necessary, on the Maintain Inhab Tax Data JPN page.
Run the Load YEA Report Data JPN process (GPJP_YEALOAD).
Update the Submit to Tax Agent indicator and edit the summary, if necessary, on the YEA Report Data JPN page.

Pages Used to Prepare for YEA Reporting

Page Name	Definition Name	Navigation	Usage
Pre-load Inhabitant Tax JPN	GPJP_RC_IH_MUN1	Global Payroll & Absence Mgmt, Taxes, Pre-Load Inhabitant Tax JPN, Pre-load Inhabitant Tax JPN	Update the municipality codes and recipient numbers by running the Pre-Load Inhabitant Tax process (GPJP_IHMUN1), which loads the employee, municipality, and recipient numbers for the object year into the Inhabitant Tax table.
Maintain Inhab Tax Data JPN	GPJP_IH_PYE_TAX	Global Payroll & Absence Mgmt, Payee Data, Taxes, Maintain Inhab Tax Data JPN, Maintain Inhab Tax Data JPN	View and correct recipient numbers after running the Pre-Load Inhabitant Tax process.
Load YEA Report Data JPN (load year-end adjustment report data Japan)	GPJP_RC_YEALOAD	Global Payroll & Absence Mgmt, Year-End Processing, Load YEA Report Data JPN, Load YEA Report Data JPN	Load the YEA report data.
Rvw/Update YEA Report Data JPN (review/update year-end adjustment report data Japan)	GPJP_YEA_TABLE	Global Payroll & Absence Mgmt, Year-End Processing, Rvw/Update YEA Report Data JPN, Rvw/Update YEA Report Data JPN	View and update the YEA Data table. View results of the YEA Data Load process and update the Submit to Tax Office indicator and theSummary field.

Updating Municipality Codes and Recipient Numbers

Access the Pre-load Inhabitant Tax JPN page (Global Payroll & Absence Mgmt, Taxes, Pre-Load Inhabitant Tax JPN, Pre-load Inhabitant Tax JPN).

Note. You must update and audit employee addresses and the Postal Codes JPN table before preloading data.

See Setting Up the Inhabitant Tax Table.

Loading YEA Report Data

Access the Load YEA Report Data JPN page (Global Payroll & Absence Mgmt, Year-End Processing, Load YEA Report Data JPN, Load YEA Report Data JPN).

EmplID (employee ID)

If you select an employee ID, the process updates the row of data for the selected employee only.

Note. To load YEA data for terminated employees, access the process through the Termination Processing menu path.

See Also

Processing Terminations

Viewing and Updating the YEA Report Data Table

Access the Rvw/Update YEA Report Data JPN page (Global Payroll & Absence Mgmt, Year-End Processing, Rvw/Update YEA Report Data JPN, Rvw/Update YEA Report Data JPN).

Submit to Tax Office

The system selects this check box if the KOU-type employee's gross income is over 5 million yen or the OTSU-type employee's gross income is over 500,000 yen (formula YE FM SUBMIT). The system does not verify whether the employee is an officer, retired, a disaster victim, or any of the other criteria for determining whether to submit the Withholding Tax report to the tax office.

Summary

The system enters deductible spouse and dependent identification, prior employment data, and the beginning date of residence (for employees who receive the housing acquisition special deduction). You can edit this data.

Because of length limitations, the entire summary might not appear on the printed reports.

Running Year-End Reports

This section discusses how to:

Run the Withholding Tax report.
Run the Withholding Tax/Wage Payment report.
Run the Legal Payment Summary report.

Note. Before running these reports, run the Load YEA Report Data process.

See Also

Processing Terminations

Pages Used to Run Year-End Reports

Page Name	Definition Name	Navigation	Usage
Withholding Tax Report JPN (withholding tax report)	GPJP_RC_YEAWHRPT	Global Payroll & Absence Mgmt, Year-End Processing, Withholding Tax Report JPN, Withholding Tax Report JPN	Run the Withholding Tax report (GPJPYE01).
Wage Payment Rpt JPN (wage payment report)	GPJP_RC_YEAWGRPT	Global Payroll & Absence Mgmt, Year-End Processing, Wage Payment Rpt JPN, Wage Payment Rpt JPN	Run the Withholding Tax/Wage Payment report (GPJPYE01).
Legal Payment Summary Rpt JPN (legal payment summary report Japan)	GPJP_RC_YEA	Global Payroll & Absence Mgmt, Year-End Processing, Legal Payment Summary Rpt JPN, Legal Payment Summary Rpt JPN	Run the Legal Payment Summary report (GPJPYE02).
Wage Payment Summary Rpt JPN (wage payment summary report Japan)	GPJP_RC_YEA	Global Payroll & Absence Mgmt, Year-End Processing, Wage Payment Summary Rpt JPN, Wage Payment Summary Rpt JPN	Run the Wage Payment Summary report (GPJPYE03).
Tax Difference Carry Over JPN	GPJP_RC_IT_TXDIF	Global Payroll and Absence Mgmt, Year-End Processing, Tax Difference Carry Over JPN, Tax Difference Carry Over JPN	Run the Tax Difference Carried Over from the Previous Year report (GPJPYE06).

Running the Withholding Tax Report

Access the Withholding Tax Report JPN page (Global Payroll & Absence Mgmt, Year-End Processing, Withholding Tax Report JPN, Withholding Tax Report JPN).

Employees

All Employees: Select to deliver the report to all employees after YEA has been processed.

Submit to Tax Office Employees:Select if you deliver the report to the tax office. The process will select only the employees whose Submit to Tax Office check box on Rvw/Update YEA Report Data JPN page is selected.

Note. To run the report for terminated employees, use the page from the Termination Processing menu.

Running the Wage Payment Report

Access the Wage Payment Rpt JPN page (Global Payroll & Absence Mgmt, Year-End Processing, Wage Payment Rpt JPN, Wage Payment Rpt JPN).

Deliver this report to municipalities after YEA has been processed. Municipal Code and Recipient Number are optional parameters. Use these to restrict the output.

Running the Legal Payment Summary Report

Access the Legal Payment Summary Rpt JPN page (Global Payroll & Absence Mgmt, Year-End Processing, Legal Payment Summary Rpt JPN, Legal Payment Summary Rpt JPN).

This report displays amounts from the withholding tax reports for salary and bonus, as well as amounts from the retirement allowance withholding tax reports.