A Japanese company’s payroll and legal calendar involves several key tasks throughout the year.1 Here’s a general overview, keeping in mind that specific dates can vary slightly and it’s always best to consult with a professional for your specific situation:
Monthly
Payroll Processing
This is a core monthly task. It includes calculating salaries, deducting income tax (withholding tax), social insurance premiums (health insurance, pension, nursing care insurance if applicable), and other deductions (e.g., employee savings, union dues). Payslips are typically issued to employees.2
Withholding Tax Payment
The income tax withheld from employee salaries is remitted to the tax office, usually by the 10th of the following month.3
Social Insurance Premium Payment
Premiums for health insurance and pension are paid to the social insurance office, also typically by the end of the following month.
Quarterly
Consumption Tax Reporting and Payment
Businesses that are subject to consumption tax file a return and pay the tax quarterly. The deadlines vary depending on the company’s fiscal year.
Annual
Year-End Tax Adjustment (Nenmatsu Chosei)
At the end of the year, companies perform a year-end tax adjustment to reconcile the total income tax withheld from employees with their actual tax liability.4 Any overpayment is refunded to the employee, and any underpayment is collected.
Tax Return Filing
Companies must file their corporate tax return and pay any corporate tax due.5 The deadline is usually two months after the end of the company’s fiscal year.6
Labor Insurance Renewal
Companies renew their workers’ compensation insurance and employment insurance annually. This often involves calculating the total wages paid during the year and paying the premiums.
Health Checkups
Companies are required to conduct annual health checkups for their employees.7
Statutory Reports
Various statutory reports are due annually, including reports on withholding tax, salary payments, and social insurance.8
Other Important Considerations
Labor Laws
Japan has strict labor laws regarding working hours, overtime, and leave.9 Companies must comply with these laws and maintain proper records.10
Social Insurance
Enrollment in social insurance (health insurance and pension) is mandatory for most employees.11
Legal Compliance
Companies must comply with various other laws and regulations, including company law, tax law, and labor law.
It’s important to note that this is a simplified overview. The specific requirements and deadlines can vary depending on the size and type of company, as well as its fiscal year. It is always best to consult with a tax accountant or other professional for specific guidance. Oedo Gyoseishoshi Jimusho, as part of the Oedo Group, can provide support with these legal and administrative procedures.
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