Accounting, payroll, HR, and admin outsourcing services for your Japanese subsidiary - HTM Tokyo

Payroll in Japan Calculator - Monthly Payroll

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The Payroll Calculator estimates net salary payment across 2 scenarios.

Monthly payroll calculations in Japan include monthly salary, overtime, commuting and other allowances, social insurance contributions and taxes. Job status, age, prefecture and work industry affects social insurance and dependents affect income taxes.

HTM provides comprehensive payroll services for foreign companies in Japan, including human resources data management, tax adjustments, payment to employees and reporting.

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    Status affects social insurance rates. Directors are not included in labor insurance, which comprises of unemployment and accident insurance.
    An example of an additional pension deducted is defined contribution plan (Japanese 401K)
    Commuting via train/bus is non-taxable up to a limit of JPY100,000. Commuting via car/bicycle has a non-taxable limit of allowance which varies with the commuting distance
    Only applicable for car/bike
    Employees aged 39 or below are not applicable for long-term insurance. Employees aged 65 or older are not applicable for long-term care insurance and employment insurance
    Different prefectures have different health insurance rates
    Type of industry affects long-term care insurance and employment insurance rates. Insurance rates are higher in a work industry that entails higher risk
    Specification of industry with higher risk will command a higher accident insurance rate
    The greater the number of dependents, the lesser the national tax withholding and inhabitant tax amount
    Monthly inhabitant tax is billed by the city/ward office where the resident card is registered. It is based on prior year’s income. If the amount is unknown, enter "0". The calculator will do an estimate based on 10% of this month's taxable base.
                 
                 
             
                 
               
    Health insurance standard salary is the segmented amount of monthly salary used to simplify calculation of health insurance benefits (base salary + OT + allowances)
    Pension insurance standard salary is the segmented amount of monthly salary used to simplify calculation of pension insurance benefits (base salary + OT + allowances)
    Health insurance entitles employees to only 30% of the payment of usage of medical facilities in Japan. The rate varies slightly with prefecture and is approximately 10%. Costs are borne 50/50 by the employee and the company
    Long-term care insurance is necessary for the support of the independent lives of citizens who require living assistance due to aging-related diseases. The rate is 1.58% as of April 2015 and it is borne 50/50 by the employee and the company
    Pension insurance is paid in lieu of pensions paid to people aged 65 and above. The rate is 18.182% as of September 2016 and it is borne 50/50 by the employee and the company
    Employment insurance provides benefits to employees if they become unemployed. It varies with the type of industry and is borne by both the employee and company
    Child care insurance is the contribution to the government child care program and borne only by the company
    Accident insurance for work related injury is borne only by the company
    Asbestos insurance is the contribution to the government program for asbestos victims and borne only by the company
                   
    Earned income deduction is a deduction from employment income when calculating income and local taxes. It is based on the total income amount
                 
                 
    - B*5.105%
    B*10.210% - 8,296
    B*20.420% - 36,374
    B*23.483% - 54,113
    B*33.693% - 130,688
    B*40.840% - 237,893
    B*45.945% - 408,061
     
     
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    These payroll calculators are not intended nor are they a substitute for professional advice. These payroll calculations are complex and qualified professional payroll advice should be obtained prior to taking any action.

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