PwC Outsourcing Service LLC can provide a variety of one-stop services to foreign corporations doing business in Japan, including those related to accounting, payroll and human resources-related administrative work, in cooperation with PwC Tax Japan and PwC Labor and Social Security Attorney Office. In accordance with each client’s request, we can also provide various other services, as well as introduce lawyers, banks, and real estate agents, on an as-needed basis.
In accordance with the salary structure of each company, we will calculate the gross salary, withholding tax, social insurance, and labor insurance, etc. for each employee, from which we will calculate the net salary of each employee and prepare a salary breakdown. Upon the client’s request, we can execute the net salary and bonus allowance payments to the employee’s bank account, and make payment of the withholding tax and inhabitants tax on behalf of the client.
In the event of an employee resignation, we can take appropriate administrative measures to collect withholding tax from the retirement allowance paid to the resigned employee.
We can also provide annual services including the year-end withholding tax adjustment procedures, preparation of a salary and withholding tax statement, as well as the salary payment report for inhabitants tax purposes and its submission to the local tax office, and preparation of a schedule that provides a breakdown of any salary, compensation, and rent paid out during a given fiscal year.
In some cases, the net salary amount of an employee being assigned from an overseas entity (including economic benefits such as company housing and/or utility costs), is determined in advance. In such event, the need arises for a gross-up calculation under which withholding tax paid by the employer is included in the employee’s taxable income. We are able to apply our know-how in conducting such gross-up calculation.