Payroll in Japan
You have many things to do when you have employees. Payroll is definitely the best way to appreciate their hard work.
Also, you need payroll even when you are the only person who works for your company (you are the CEO). Your company pays your salary (You must be separated from your company).
Key dates related to payroll
31st January – Last day to submit the ‘Income tax withholding slip’ and ‘Salary payment report’ for the previous year.
May – Receive a notification of the individual inhabitant tax for the period from June to May.
10th July – Last day to submit the ‘Labour insurance premium annual report’ and pay the labour insurance premium.
10th July – Last day to submit the ‘Social insurance (health and pension insurances) annual report’.
August (or September) – Receive a notification of the social insurance premiums for the period from September to August
December – The ‘Year-end adjustment’ is made.
Note: Withholding tax and individual inhabitant tax must be paid by the tenth of every month for the previous month. Also, social insurances (health insurance, pension insurance, long-term care insurance) premiums must be paid by the end of every month.
Withholding tax table for monthly salary 2018
One of the basic things about payroll is doing monthly salary. Probably you (CEO) can determine how much the company pays salaries. But you cannot control the taxes deducted from the salary as the tax law tell you. Actually, there are other things you have to cover to complete this task. For example, you need to know about social insurance premiums which are also deducted from the salary. Social insurances generally include health insurance, pension insurance, and labour insurance. But the premiums are not very simple because the amounts depend on several factors such as the place your office is located.
Compared to the social insurances, withholding tax for monthly salary would be simple as the tax table shows how much. You can download the table. This is the excel version.
If your are interested in other tables (daily payment, bonus, etc.), you can go to http://www.nta.go.jp/publication/pamph/gensen/zeigakuhyo2017/01.htm
Withholding tax table for monthly salary 2019
Withholding tax table for monthly salary 2020
Social insurance forms with English guide for new companies
When you set up a company and start paying salary, your company has to enroll in social insurance (health insurance and pension).
You can download forms on the pension website below.
If you don’t read Japanese and want English version, you can download excel files below: