Payroll Calculation and Social Insurance
SANSEI administers payroll for international and domestic organizations of all types and sizes. We handle and advise for all payroll processing needs, and oversee for all regulations, earnings, deductions, and tax issues.
Social Insurance Application
The four primary employee insurance programs in Japan are: Health Insurance, Welfare Pension Insurance, Workmen’s Accident Compensation Insurance, and Employment Insurance. We assist clients with compliance by providing these services:
- Consulting on local benefits packages for expatriates
- Initial company filing to Social Insurance Agency
- Reporting to Social Insurance Agency and Public Security Office on newly hired or terminating employees
- Computation of labor insurance premiums and annual report
- Annual reporting to Social Insurance Agency on remuneration for months May to July of each year – period under which standard remuneration for social insurance is determined each October
Payroll Calculation · Foreign Capital-affiliated Firms
SANSEI payroll services involve monthly calculations, company applications for newly established or transferred social insurance, and monthly reports for employee social insurance coverage. In addition to ongoing payroll issuance, there are annual tasks which include yearend adjustments, notification of base amounts for calculation of social insurance, and the statement for labor insurance.
For added service features, we provide written English advisory to foreign personnel in Japan for all payroll calculation and social insurance processing services. And as needed for client administration, we perform payroll calculation using gross-up method as well as calculations for company certified rents. We also prepare income tax statements for employees returning to home countries and manage corresponding tax payments.
SANSEI payroll processing services features include:
- Initial setup: Japanese payroll system installation, tax offices initial reporting, social insurance registrations
- Monthly services: payroll computations, social insurance and income tax deductions, summary schedules and payment vouchers, corresponding official reports
- Biannual services: monthly service procedures (see previous), bonus payments reports for social insurance
- All cash transfer arrangements
- Annual services: monthly and biannual procedures (see left), yearend income tax adjustments, annual withholding certificates summary to tax offices, municipal offices payroll reports, social insurance offices reports, labor insurance premiums and annual report
- Acting as company representative to social insurance offices
- Retirement procedures, special bonuses, standard remuneration reports, sick leave applications and other special reports, new hires and terminations reports
Consultation for Personnel Matters
Various questions can arise regarding staffing. The dismissal of staff in Japan, for example, can be a challenge. Foreign capital-affiliated companies in Japan often depend on the overseas main office to perform such a duty. Still, controversy can arise with Japan staff if this type of personnel adjustment is made.
We share our broad experience and guide the client in resolution of these types of personnel issues. In cases of staff dismissal, for instance, we offer advice for validating grounds and developing proper documentation.
Resolution of Recruiting Issues
Management-labor negotiations are typically overseen by the personnel department of the overseas main office, while SANSEI is not always involved in liaison. We do, however, provide invaluable advisory on Japanese labor regulations to the personnel department.
