The services related to payroll in Japan include managing all of the aspects related to the compensation of a company’s employees. They are calculating the wages, according to the salary scale, delivering the payment to the employees, calculating bonuses and any other due amounts to the company’s staff.
Our payroll Japan experts assist companies in need of professional services in this area. Many business choose to work with a third-party when handling payroll and this is due to the fact that this choice allows them to access professional-grade services at the same or lower costs compared to having an internal payroll and human resources department. For small and medium companies, handling payroll internally may not even be possible, this is why outsourcing is a convenient solution.
Our team of company formation experts in Japan assist investors who wish to not only open a company but also those who are in need of specialized services once their business has started its activities.
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What services do you provide for payroll in Japan?
Our payroll services are tailored according to the size of the business and its number of employees. We can help you with:
- Calculating wages, bonuses and premiums when applicable;
- Calculating the social security contributions as these are withheld at source in Japan;
- Maintaining the electronic payroll and social security contribution records;
- Sensing the pay slips to employees;
- Calculating employee attendance, if needed;
- Providing the employees with documents and certificates, as needed.
Our payroll Japan experts can also give you information on whether or not certain tax incentives can apply in your case.
When investors open a company in Japan, they will need to consider their human capital, an important resource that will have a significant impact on the evolution of their business. This means now only looking for suitable candidates for the open job positions, it also means properly managing all employee-related matters.
In Japan, the Labor Standards Bureau is the one tasked with supervising companies in terms of lawful working conditions. The Bureau is part of the Ministry of Health, Labor and Welfare.
What are the benefits of a payroll Japan outsourced service?
We list the following:
- A streamlined process: the steps and activities needed to monitor the payment of employees is easier when working with a team that uses tools and software for this purpose;
- Time benefits: you save the time needed to calculate the wages, any bonuses and for filing the employee social security contributions; you can direct the saved time towards other activities that will benefit the business;
- Correct tax submissions: when working wit a team of payroll and accounting specialists, such as our own, you will rest assured that the tax submissions are filed according to the conditions and the terms in force;
- Good employee management: you will know that the worked hours are correctly monitored and that the employees are paid correctly, on time.
You can reach out to us for more information about our payroll service packages.
What are the main tax duties regarding employees in Japan?
The payroll Japan tax system is based on the fact that the employer withholds the national and local social security contributions at source. The following tax rates are relevant:
- 0.6% of the total annual wage paid by the employer as part of the employment insurance;
- 0.3% of the annual wage paid by the employer for the worker’s accident compensation insurance;
- 4.935% of the total annual wage paid by the employer for health insurance and nursing care insurance; the value of thin contribution is 5.83% when the employee is aged 40 or over;
- 9.15% payable by the employer for the employees’ pension insurance;
- 0.36% payable by the employer for child benefits contribution.
The total percentage of the total annual wage payable by the employer in Japan amounts to 15.345% or 16.24% if the employee is aged 40 or over. The employees also pay their part of the contribution. For employees who are at risk of asbestos-induced diseases, 0.002% is added to the accident compensation insurance.
You can reach out to our accountant in Japan for complete information about the tax requirements, tax filing dates, applicable exemptions and incentives.
When you choose to work with our agents specializing in payroll in Japan you have access to a team of dedicated professionals.
Contact our Japan company formation agents to find out more about our payroll solutions, as well as other services.
We also assist branches in Japan.