Regular Year End Adjustment Calculation

Use

This function calculates an employee's annual taxable income amount and its corresponding definitive annual income tax amount, then by comparing those amounts with the gross income tax amounts withheld during the year, determines the amount difference which is returned to or collected from the employee.

This amount difference is paid or deducted during the present payroll.

Prerequisites

This function can be run only in parallel with Monthly Payroll or Shoyo Payroll. Thus, the year when the payroll Year End Adjustment period is to be executed must be defined in the customizing set up. For more information, see Set Up Processing Scenario of Y.E.A. Calculationin Implementation Guide (IMG) for Payroll Japan .

Payroll, which this functions run in parallel with, must be the last payment in a tax year for a personnel in process.

Features

Regular Year End Adjustment covers full functionality of monthly payroll and/or Shoyo payroll. The following information entered in employees' master data ( Y. E. A. Information (Infotype 0146) ) is taken into account during payroll calculation.

  • Deduction for Life Insurance Premium

    Deduction for Casualty Insurance Premium

  • Deduction for Pension Insurance Premium

  • Exemption for a Spouse's Income

  • Credit for Acquisition of a House

  • Other Adjustment type wages if entered

Activities

Processes for performing Regular Year End Adjustment depend on the type of Year End Adjustment payroll run that are to be executed with.