Payroll in Japan can get quite complicated with basic wages, overtime and bonuses less deductions for income tax, residents tax, health insurance, over 40 health insurance, pension and labour insurance, not forgetting the employer’s contribution to employees’ health insurance, pension and labour insurance. Then of course you not only do you have to pay employees their net wages, you also have to pay the income tax withheld to the tax office, the residents tax to the local tax office, the health insurance and pension to the health insurance and pension office and labour insurance to the labour office all by the due dates having filled out the correct forms. Finally, at the end of the year you must prepare the end of year tax adjustment and withholding tax certificate. So why would you want to make it harder?
Many employers in Japan outsource the whole payroll function to an external accountant and there are even licenced social insurance consultants (sharoushi) who specialise in this work and are well worth considering if you don’t have the time or inclination.
Certainly when it comes to preparing the annual tax return, nearly all businesses hire a tax accountant to get the job done but surely a business should be able to calculate its employees wages without also having to hire outside help if it so wishes. So here are my tips to help you manage your own payroll:
WorkflowMax is an integrated, online all-in-one project management software program. It handles the whole process from lead to quotes, job management, time-recording, purchase orders, invoicing and reporting all in the cloud. It’s a Xero product and so integrates well with Xero accounting software. Find out more at www.workflowmax.com or ask me for a demonstration.Read More »
Xero online accounting software is now being used by over 400,000 small businesses around the world. If you’re thinking of trying it or want to set up another business on Xero, now is the time to take advantage of a special 60 days free trial.
Just ask me to create a new Xero datafile for you before 31 December 2014 and the first 60 days will be free of all software charges. I can set the file up with my standard chart of accounts or you can go through the set up assistant and set it up yourself.
After that you can start to subscribe at US$12 per month for the Cashbook plan, US$20 per month for the Starter plan, US$30 per month for the Standard plan (most popular) or US$40 per month for the Premium plan.
Visit www.xero.com or ask me for more details.Read More »