PAYROLL & SOCIAL INSURANCE

Japan’s social and labor insurance policies, which include payroll and pension provisions, can be more complicated than most other countries. Recent years have seen an increase in disputes between employers and employees (both current and former) as a result of issues relating to labor laws. Because of this, it is common for foreign companies to outsource their payroll and social insurance procedures to local specialists when operating in Japan. PKF JAPAN has a team of certified professionals who specialize in delivering payroll and social insurance solutions, known domestically as “Certified Social Insurance and Labor Consultants.” As a one-stop payroll and social insurance support service for Japanese corporations and branches, we provide a quality service that is comparable to other major firms but at a reasonable price.

Human Capital Advisory Services

We provide payroll and social insurance-related advisory services that meet the needs of our clients, commensurate to their size and the current stage of their business. When foreign companies expand their business operations into Japan, handling issues related to human resources and labor management can be complicated and problematic. Our labor management specialists can provide you with helpful advice so you can avoid such problems.

  • Human Resources Advisory Services
    • The international business environment has a continuously evolving and globalizing demographics, with an increasing diversity of workforce management issues. Now that “human” capital has grown in importance and the management of such resources has become a priority, when a foreign corporation expands their business into Japan, we aim to help them address these issues through the optimization of organization structure, the development and utilization of a competent personnel system, and the provision of personnel training and education.

      Management of Personnel Regulations

      We provide support to our clients when it comes to the implementation and maintenance of the internal employment processes in compliance with all personnel-related regulations that apply to their Japanese subsidiaries or branches. The development and continuous improvement of working regulations are vital to any business as these create an environment where employees can be motivated to demonstrate their abilities fully. The increase in individual labor disputes between employees and employers may often result from flaws in the internal work processes and their improper implementation contrary to the relevant regulations. The proper establishment and execution of rules can avoid such problems.

      Human Resources and Wage System Consulting

      A dependable wage system is one way a company can help its employees grow and improve performance. We can help with the development of your company and the growth of its employees through the provision of human resources and wage systems.

      First, we will assess if your personnel and wage systems are functioning efficiently and effectively. Then we will address any issues present in the existing system to create for you an improved personnel evaluation system. After implementing the necessary changes, we will monitor the new system to ensure it is working effectively and yielding the required results with a focus on all feedback received. Our labor and social insurance consultants have extensive experience with the creation and evolution of personnel and wage systems, and they will work with you to help your business improve.

  • Labor Relations Advisory Services
    • When a foreign corporation conducts business in Japan, there is an expectation that it will respect its “human” capital and comply with the provisions in all labor-related laws including the Labor Standards Act, the Industrial Safety and Health Act, the Act on Securing, Etc. of Equal Opportunity and Treatment between Men and Women in Employment, and the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members. Our certified labor and social insurance consultants provide a wide range of services that can help you resolve your labor relations concerns, answer your questions, and help you implement best practices in your company.

      Labor Relations Consulting

      When employing individuals, all employers in Japan must prepare a range of materials including an employment contract, the necessary documents to update their Roster of Workers, set-up the conditions of employment and a method of determining salary, a process for attendance (timekeeping) management, and other internal employment documents in compliance with domestic regulations. PKF JAPAN’s integrated team of certified labor and social insurance consultants, lawyers, and administrative assistants, are all ready to assist you and resolve all of your concerns relating to labor relations.

      Labor Auditing

      We offer a service that focuses on providing an assessment of the effectiveness and completeness of a company’s human resource management. The evaluation can focus on qualitative or quantitative aspects, or it can be a combination of these two elements. The audit service primarily investigates if the company’s current labor-management processes and policies will conform with labor laws, and to understand and create countermeasures against any potential risks relating to the labor management.

  • Payroll Services
    • Our services include fulfilling the outsourcing of your monthly payroll processes, including any bonus calculations, year-end adjustments, and other wage-related procedures using our dedicated payroll staff. Salary management is a vital task that is only required for a short period each month, but it may be a complicated task due to the nature of the calculations of payments and deductions. Also, due to the sensitive nature of the information that is involved, it cannot be undertaken by just anyone. Foreign corporations operating in Japan can benefit from outsourcing such kinds of tasks to Japanese based specialists such as PKF JAPAN. Not only can we pair this outsource service with our payment processing service, but we can also customize our services to meet the needs of both your company in Japan and your parent company overseas ― options include bespoke reporting style or the use of a specific software application.

      About our Payroll Services

      Payroll is a task that may only require a small amount of time, but it is complicated in nature. The regulations that govern labor and social insurance, such as the Labor Standards Act and the Act on the Collection, etc. of Insurance Premiums of Labor Insurance, and related laws as the Income Tax Act, are frequently revised. Monitoring and adjusting to changes to remain compliant with the regulations can place a considerable burden on companies. A thorough understanding of the social and labor insurance system in Japan can also bring benefits to a company through the lowering of premiums. At PKF JAPAN, we manage a range of payroll outsourcing tasks for our clients, freeing them from the burdens of these complicated responsibilities and helping them to work more efficiently. Our services include the following:

      • Draft and review of wage regulations (including wage increases, cuts, bonuses)
      • Timecard compilation and management
      • Salary and bonus calculations
      • Year-end adjustments
      • Preparation of payroll documentation (payslips, salary payout tables (bank), Firm Banking (FB) files)
      • Drafting and improvement of payroll workflow.

Social Insurance Management Services

PKF JAPAN’s payroll staff are thoroughly familiar with Japan’s social insurance requirements, which include health insurance, welfare pension insurance, workers’ compensation insurance, and employment insurance. Our highly experienced team can implement any processes related to the management of social insurance on your behalf. Using cloud software solutions, we can offer you operational efficiencies that allow you to invest your management resources into improving your core business. Together, with our other payroll and payment processing Business Process Outsourcing (BPO) services, we can further help you improve the efficiency of your business.

  • About our Social Insurance Management Services
    • Handling administrative procedures such as social insurance and labor insurance can be time-consuming for managers and employees who are unfamiliar with the process. Having staff members manage general personnel issues may result in the company needing to incur additional costs associated with hiring and training. The retirement of staff in-charge of Human Resource affairs may also cause significant disruption to company operations. Outsourcing your social insurance procedures to our certified team of professionals can reduce the burden of having to manage these procedures yourself. We can also help reduce costs by undertaking a review of your existing workflows and suggesting efficiency and effectiveness improvements.

      We can manage a range of outsourced payroll and social insurance tasks for you, including the following:

      • Social insurance and labor management
      • Application, management, and improvement of processes for employees eligible for social or labor insurance
      • Preparation and submission of documentation related to social insurance and labor insurance.

Preliminary interviews for PAYROLL & SOCIAL INSURANCE SERVICES

Before we offer our services, our team at PKF JAPAN will typically schedule an initial consultation with potential clients to ensure that we fully understand their business, identify the most appropriate options for their individual needs, and allow us to provide an accurate quotation. We may ask you for copies of the following documents to help this process:

  • An overview of your business activities (such as import/export, wholesale/resale, commission services), and your sale and distribution channels. If there are several business activities, we would kindly ask for details of each. We may also ask you to provide support documentation for your business activities, such as a link to your company website.
  • The structure of your company’s business organization: for example, if it a Japanese based subsidiary, a branch office located in Japan, or an individual investment.
  • The date of your fiscal year-end and the establishment of your company or branch office.
  • The number of employees that your company currently employs, including all directors, part-time, and non-regular staff.
  • The cut-off and payment dates for salaries and wages.
  • If you use an existing payroll software application.
  • The method used to monitor employee attendance. (may include timecards, biometrics, self-reporting).
  • The method used for your salary payments if you choose not to use our payment processing services (may include bank transfer, telegraphic transfer).
  • Your amenability to online salary slip confirmation.
  • Your employee bonuses payment method and frequency requirements if applicable.
  • Any requirements for gross-up salary computations for expatriate employees.
  • The details of the point of contact for payroll coordination and HR-related matters.
  • Finally please let us know if you have any other specific requests regarding our HR services.

Service Features

Our PAYROLL & SOCIAL INSURANCE services boast the following four major features:

An ability to provide services to foreign-affiliated companies regardless of their size

PKF JAPAN is home to a core team of certified professionals, including Certified Professional Accountants (CPA), Enrolled Agents (EA), and Tax Advisors who are all certified in Japan, and who have experience of working for the other major accounting firms. We are committed to providing accounting support to companies from across the world when they seek to expand their business into Japan ― either as companies or branches. We provide services to a wide range of clients from multiple industry sectors, from international companies listed overseas to those operating in the global aviation industry.

Aims to increase corporate value through labor management

Labor management plays an essential role in any company as any success will be dependent upon maintaining good relationships with human resources. The reduction of labor risks can enhance a business’s corporate value. Here at PKF JAPAN, we will help you strengthen the management base for your “human” capital and provide advisory services for both a medium and a long-term perspective aimed at improving your corporate value.

Risk-managed payroll based-off consultations with a certified labor and social insurance consultant

While the quick and accurate completion of payroll tasks is vital, the fees charged for the outsourced services should not dictate the quality of the service. At PKF JAPAN, we provide feedback on our client’s management style as well as any risks we acknowledge while doing payroll services for your company, based on the advice of our certified labor and social insurance consultants.

An ability to offer multilingual services and support

Here at PKF JAPAN, we employ bilingual staff who are proficient in the major languages for international business, including English and Chinese. Over recent years we have seen an increase in both foreign business expansions into Japan and the overseas business expansions of Japanese enterprises. In such an evolving business environment, we are proud to be able to offer our labor-related services in both English and Chinese to enhance and expand the support that we can provide to our clients. We can address any concerns you may have relating to complicated international labor issues as well, such as services related to social security agreements.

Meet the Partners

Satoshi-Sekiguchi

Satoshi Sekiguchi

PKF Shiodome Partners

Partner

Jun-Kurozumi

Jun Kurozumi

PKF Shiodome Partners

Partner

Akinari-Tsuchiya

Akinari Tsuchiya

PKF Shiodome Partners

Senior Partner

Masashi-Arai

Masashi Arai

PKF Shiodome Partners

Partner

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