Understanding Retirement Allowance Processing

Upon retirement, payees may be eligible for a retirement allowance based on years of service, base pay, the reason for termination, or other criteria, according to your organization's policies. 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.

This section discusses:

• Delivered elements for retirement allowances.

• Viewing delivered elements.

• Deduction processing rules.

• Retirement allowance setup and processing.