Global Payroll for Japan Business Processes

Global Payroll for Japan supports the following business processes:

• Salary and Bonus.

  Global Payroll for Japan provides the necessary elements to calculate earnings and deductions for salary and bonus for four pay types—monthly exempt, monthly non-exempt, daily, and hourly. Map your Global Payroll for Japan system to the base pay compensation rate codes in employees' compensation packages, and enter bonus amounts through positive input. Include commuting allowance in monthly payroll, adjust salaries for overtime and absence, and deduct social insurance and labor insurance premiums, income tax, and inhabitant tax as required by law.

• Time Data.

  Flexible rules enable tracking time data for the purpose of calculating salaries and tracking paid time off (PTO). Use variables for processing workdays, overtime, holidays, tardiness, absence, PTO, sick leave, and special leave. Use delivered formulas to track PTO entitlements, takes, and balances. Define processing of PTO that is carried over from the previous year according to your organization's practices.

• Termination processing.

  Global Payroll for Japan delivers rules and procedures that support the automatic calculation of year-end adjustment (YEA) for terminated employees.

• Commuting Allowance.

  Global Payroll for Japan provides the elements that are necessary to calculate and track payments of cash, non-cash, taxable, and nontaxable commuting allowances in frequencies of one day, one month, three months, and six months. The commuting allowance can be defined by total amount or by commuting route. The system provides a default value for the monthly maximum nontaxable commuting allowance. You can define the maximum nontaxable toll compensation for each employee and input the value of each employee's commuting allowance components. The system generates payment in the appropriate month and also tracks the value of the commuting allowance for calculating monthly remuneration.

• Retirement Allowance.

  With Global Payroll for Japan, you can enter an employee's retirement allowance and have the system automatically calculate and deduct the related income tax and inhabitant tax (prefecture tax and municipality tax ) on retirement earnings. The system can also generate a withholding tax report and payslips for retirement allowances.

• Social Insurance.

  Global Payroll for Japan provides variables, formulas, earnings and deductions, and other rules to calculate and track all aspects of social insurance premiums. The system calculates health insurance premiums, pension insurance premiums, and nursing care insurance premiums. It also calculates and tracks average monthly remuneration to support the regular decision process and to identify employees who are subject to occasional revision. A set of social insurance reports helps you complete your social insurance business process.

• Labor Insurance.

  Global Payroll for Japan calculates the employee contribution for employment insurance premiums by using the appropriate premium rate for the industry type based on the employee's total wages. The system also tracks short time labor insured workers, determines exemption from employment insurance, and supports labor insurance reporting.

• Inhabitant Tax.

  Global Payroll for Japan provides rules, pages, processes, and reports that you use to prepare wage payment reports and summaries for municipalities, load inhabitant tax amounts received from the municipalities, deduct inhabitant tax amounts from monthly salary, and prepare monthly inhabitant tax reports for municipalities.

• Income Tax.

  Global Payroll for Japan provides rules to calculate and deduct income tax from both salary and bonus and to adjust income tax on the final payment of the year. Use the Withholding Tax Register report to meet the statutory monthly reporting requirement.

• Zaikei Deductions.

  Global Payroll for Japan provides delivered elements to support funding Zaikei savings accounts.

• Year-End Adjustment.

  The delivered rules satisfy Japanese statutory and business requirements for year-end adjustment of the final salary or bonus payment and for independent year-end adjustment, as needed. After year-end adjustments are complete, and you prepare your data tables, you can generate the necessary reports to complete the year-end adjustment business process.

• Banking.

  Global Payroll for Japan supports electronic transfers from multiple company accounts to multiple employee accounts. For each employee, you can define the distribution amounts to multiple banks separately for salary, bonus, independent year-end adjustment, and retirement allowance. The system provides the direct deposit file in a common format that is used by all banks in Japan.

• Payslips.

  Global Payroll for Japan enables you to print payslips for monthly salaries, bonuses, independent year-end adjustment, and retirement allowance. Because the format of payslips varies greatly from one company to another, the system provides one format as an example. The system also provides a template that enables you to configure the format to accommodate the payslip style that your organization uses.