Non-resident Payroll Accounting


This new function supports a series of business processes for the payroll accounting of employees on an overseas assignment. These processes must be performed at the employees' home country (Japan) and cover the period between the employee*s leaving (thus rendering him or her a non-resident) and returning to Japan. In general, payroll for employees on an overseas assignment consists of a domestic payment part and foreign payment part. HR Payroll for Japan covers the former, taking account of Japanese legislation which requires, for example, that a special tax calculation must be used.

Assumptions on employees on an overseas assignment

Proceeding new position at overseas branch office or the factory of domestic corporation and temporary transfer to affiliated company at overseas are assumed.

Payroll accounting in the domestic corporation (Japan) requires employees on an overseas assignment to meet the following two conditions:

In addition to this, the employee must be transferred either to an overseas branch office or factory of the domestic company, or to an affiliated company at overseas. In the former case the employee's workplace changes, thus he or she is not SYUKKO. In the latter case the employee is SYUKKO, but payroll processing cannot be carried out due to his or her working outside Japan.

Function description

Maintenance of attribute information for employees on an overseas assignment

Administrative information (e.g. residence status) can be maintained as well as information that may affect payroll calculation for the employee concerned.

Year end adjustments for domestic tax when leaving Japan

Year end adjustments on taxes can be performed for an employee's wages which were paid between January 1st of the respective year and the date of leaving Japan.

Payroll accounting complying with Japanese legislation

The payroll processing of the domestic payment part for an employee during an overseas assignment is carried out in compliance with the Japanese legal requirements.

Retirement allowance for non-resident employees on an overseas assignment

If an employee is going to retire during or at the end of the overseas assignment and remains a non-resident, taxation of the retirement allowance can be performed.


Specific functions which support the following business procedures are not included in Release 4.0:

Further notes

Please refer to following section of Online Docuement for more detaild function description and operation procedures.

Personnel Administration & Payroll Accounting

--> Payroll --> Procedure of Payroll --> Procedure of Payroll -Japan

--> Topics Specific to Japanese Payroll

--> Non-resident Payroll Accounting