MY
Number
Under
the Social Security and Tax Number System, mayors issue an individual number to
each and every person holding a resident record who resides in their
municipalities. Central government organizations and local governments will use
the Individual Numbers to efficiently manage information by tying them to
personal information they have on individuals in the areas of social security
administration, taxation and disaster response. From a payroll perspective,
Residents will be asked to provide their Individual Number on application forms
and other documents needed for procedures for the National Pension,
Unemployment Insurance, Medical Insurance and tax procedures such as filing of
tax returns.
Some
Benefits:
· It will improve public convenience by reducing the number of
accompanying documents needed for administrative procedures related to social
security and taxation
· It will help design new and better social security schemes through
more precise ascertainment of residents' income
Whether
you are operating in, or considering entry into the Japanese market, it’s
essential to understand ‘How MY number affects HR and Payroll’.
From
a payroll viewpoint, MY Number has a significant impact on services, especially
on how year-end payroll or tax adjustment is to be executed. Companies are
required to modify their payroll systems and facilities to make sure their
employees’ data is secure and tightly controlled. For companies hiring payroll
service providers, it is necessary to amend service agreements in order to
allow them access and use of MY Number when supporting payroll and year-end
activities.
It
will become easier for municipalities to obtain information related to income
of local residents for procedures to distribute child care benefits. This will
cut both administrative work and paperwork for applicants.
Year System
in Japan
There
are four era in Japan i.e.
·
Meiji Era (1) (明治)or(明)à (1868/1/25 –
1912/7/29)
·
Taisho Era (3) (大正)or(大)à (1912/7/30 –
1926/12/24)
·
Showa Era (5) (昭和)or(昭)à 926/12/25 –
1989/1/6)
·
Heisei Era (7) (平成)or(平) à (1989/1/7 –
Current)
So,
from 1868/1/25 till 1926/7/29, we have Meiji Era. It means Year 1868 is known
as Meiji 1, 1869 as Meiji 2 and so on.
Please
note that year 1912 (till 1912/7/29) is Meiji 45 and Taisho 1 from 1912/7/30
onwards till 1912 end. Year 2017 is Heisei 29.
In
Japan Reporting, we have numbers 1, 3, 5 and 7, which represent respective era
marked against numbers above.
In
next post, we will be discussing about Employee Declarations required for
calculating tax on individuals by employer.
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