Commuting Allowance for Multiple Jobs

Global Payroll for Japan supports multiple jobs functionality. For employees with multiple jobs, the commuting allowance is calculated for each job, not for each employee. Likewise, the monthly nontaxable limit is applied for each job, not for each employee, as is described in the following examples.

Standard Example

A commuting allowance of 140,000 JPY is paid for employee Yuko Yoneda, who has one employment record number. The system will apply the monthly nontaxable limit to the employment record number and deduce that 100,000 JPY is nontaxable and 40,000 JPY is taxable.

Multiple Jobs Example

Kimi Kubota has two employment records, 1 and 2. A commuting allowance of 60,000 JPY is paid for employment record number 1. A commuting allowance of 80,000 JPY is paid for employment record number 2. The system will apply the monthly nontaxable limit to each employment record number and deduce that allowances are nontaxable. Notice that Kimi Kubota receives the same commuting allowance as Yuko Toneda in the preceding example. Kimi Kubota's allowances are nontaxable because each individual payment never exceeds the nontaxable limit.