Once you hire employees, you need to run payroll and pay withholding tax every month, carry out the year-end adjustment, and file statutory reports in January. With foreign employees, dependent deductions and residence status also need attention.
We can help if you
- are hiring your first employee
- have employees whose families live abroad
- pay salary to directors or employees living abroad
- always struggle with year-end adjustment and statutory reports
What we handle
- Monthly payroll: we calculate net pay after social insurance, withholding tax and inhabitant tax, and prepare payslips.
- Withholding tax payments: we prepare payment slips and remind you of deadlines (companies with fewer than 10 employees can pay twice a year).
- Year-end adjustment: we collect employee forms, settle the year's tax and issue withholding slips.
- Statutory reports: we file reports with the tax office and municipalities.
Points for foreign employees
Dependents living abroad
To claim a dependent deduction for family abroad, employees need documents proving the relationship and proving that they send money for living costs. Since 2023, dependents abroad aged 30 to 69 are generally not eligible, except students, people with disabilities, and those who receive at least 380,000 yen a year.
Salaries paid to non-residents
Salary paid to a non-resident for work in Japan is generally subject to 20.42% withholding. For directors, remuneration from a Japanese company may be taxed in Japan even for work done abroad. Tax treaties can change the treatment.
Joining and leaving mid-year
For employees who arrive in or leave Japan during the year, the withholding method changes from the date they become a resident or non-resident. A year-end adjustment may be needed before an employee leaves Japan.
How we help
- Set up payrollWe confirm pay dates, allowances and social insurance enrollment.
- Monthly calculationYou send attendance and changes, and we calculate payroll and send payslips.
- Year-end proceduresWe handle the year-end adjustment and statutory reports.
Social insurance procedures are handled together with a licensed labor and social security attorney (sharoshi).
FAQ
Can we use your service with only one employee?
Yes, from one employee. We also handle director-only companies, including director remuneration and withholding tax.
This page provides general information only. The actual treatment depends on your individual circumstances. Please consult a professional before making decisions.