Understanding ZaikeiSavings Plans
Zaikei savings accounts are government-sponsored plans for employees that promote asset formation and accumulation in the form of savings for housing and pensions. Employers deduct a fixed amount from employee earnings (salary and bonuses). Preferential tax treatment may apply to interest earned on Zaikei savings. Employer participation in Zaikei plans is optional, but most provide this benefit to their employees.
Zaikei Account Products and Restrictions
Companies establish contracts with financial institutions to administer Zaikei plans on their behalf. Financial institutions modify their existing products to comply with Zaikei restrictions. These restrictions require that:
New accounts be created only by the company for which the employee works.
Contribution be made only through deductions from salaries and bonuses.
Employee withdrawals be made only through the company for which the employee works.
The account can be closed only by the company for which the employee works.
Understanding Element Assignment by Payee
The deductions from salary and bonuses for Zaikei savings are set up using the Element Assignment By Payee component in Global Payroll. The steps to set up Zaikei deductions and assign them to employees include:
Create a new element category for Zaikei deductions.
Note: You can use this element category for all non-legislative deductions, not solely for Zaikei deductions.
Define a deduction element for each Zaikei financial product that the company offers with the override level set to Payee.
Add the element as a member to accumulators for Zaikei deductions.
Assign the element to the payee.
Enter the effective date and the amount of the deduction for the payee.
Examples Presented
The deduction elements that are used in the examples are delivered sample data. Other elements that are used in the examples are delivered as customary or statutory elements. You should consider the example a template for setting up Zaikei elements for your specific organizational needs. You must set up a deduction element for each Zaikei savings plan that your organization offers to employees. For example, if your organization has contracts with financial institutions A and B, and financial institution A has three Zaikei products and B has four, you will need to set up seven Zaikei deduction elements.
Delivered Sample Data for Zaikei Deductions
Element |
Element Type |
Description |
---|---|---|
ZK GENERAL |
Deduction |
General Zaikei deduction. |
ZK PENSION |
Deduction |
Zaikei deduction for pension savings. |
ZK HOUSING |
Deduction |
Zaikei deduction for housing savings. |
DENL |
Element Category |
Non-legislative deduction element category (for Zaikei elements). |
ZK GC RUN TYPE FLG |
Generation Control |
Run type flag check. |
ZK FM RUN TYPE FLG |
Formula |
Zaikei Run Type check flag (checks the run type of the Process). |
ZK AC SAVINGS |
Zaikei Savings Accumulator |
All Zaikei deduction elements must be members of this accumulator. This accumulator is a member of accumulator ER AC TTL DED SAL (total amount of salary deductions) and accumulator ER AC TTL DED BON so that Zaikei deductions are deducted from gross earnings. |
ZK SE DED |
Zaikei Deduction Section |
Delivered and Customary Zaikei deduction elements must be included in this section. This section is included in these existing process lists:
|
Printing Zaikei Deductions on Payslips and Reports
The amount of Zaikei deductions appears on JSALSLIP and JBONSLIP payslip IDs, for salary and bonus earnings respectively. When the amount is zero, neither the label nor the amount prints on payslips.
A segment accumulator for Zaikei deductions appears on these generic reports:
JGR02 (Accumulator List [Sal])
JGR04 (Accumulator List [Bonus])
JGR05 (Wage Ledger)