Repeat Year-End Adjustment (After Jan 31)
When an employee’s dependents data has been changed after YEA was performed and the withholding tax statements have been submitted to related tax offices, you use this process to correct year-end adjustment (YEA) results and legal statements.
Prerequisites
You have performed year end adjustment.
You perform Repeat YEA (after Jan 31) only to the employees who have a tax collection.
Year-end adjustment recalculation function is designed to be performed when the status of payroll control record for a payroll area is outside of Release Payroll to Exit Payroll.
Process
You correct employees' master data and YEA information.
Before performing year-end adjustment correction, master data such as Family and Related Person National Features Japan (infotype 0021) , Personnel Tax Status Information (0145) , and Y. E. A. Information (Infotype 0146) of employees who need YEA result correction must be checked and corrected.
You check the status of payroll control record of a payroll area.
We recommend that you ensure payroll control record status is outside of Release Payroll to Exit Payroll.
You start repeat year-end adjustment (after Jan 31).
You call up payroll program and select the payroll reason Repeat YEA after Jan 31(0016) and off-cycle payroll type B for year-end adjustment recalculation.
If there is a tax refund calculated during the YEA correction, the system terminates the processing of YEA correction and display an information message.
You end repeat year-end adjustment .
You can only complete Year End Adjustment Correction when the payroll has run successfully for all target employees who need correction in the selected payroll area. This means that payroll is completed for all of the personnel numbers in the payroll area, including the rejected personnel numbers, and the payroll period is complete.
You run YEA- related reports, such as Withholding Tax Statement for Employment Income (RPCEADJ0).
As the closing of Year End Adjustment, you need to print the related legal forms and statements.
You run regular payroll for the next payroll period
If the newly calculated YEA result is different from the original YEA result, the system carries forward the difference to the next payroll accounting, and the company deducts the tax collection amount from the payroll for the next payroll period.