Managing Social Insurance

This chapter provides an overview of social insurance rules, lists prerequisites, and discusses how to:

• View delivered earnings and deductions for social insurance.

• Prepare employee social insurance payee data.

• Prepare for Monthly Standard Remuneration Reports.

• Check social insurance calculations.

• Run social insurance reports.

• Create social insurance report data files.

• Prepare for social insurance premium payment.

Understanding Social Insurance Rules

This section discusses:

• Standard remuneration calculations.

• Premium calculations.

Standard Remuneration Calculations

This section discusses the rules and elements used to calculate:

• Monthly remuneration.

• Monthly standard remuneration and grades.

• Eligibility for regular decision or occasional revision.

• Retroactive increase or decrease in fixed wages.

Monthly Remuneration

The system is delivered with rules and elements that support monthly remuneration calculations. Some of the highlights are:

• Accumulators track cash and non-cash earnings that are subject to the social insurance premium and monthly fluctuation in the fixed wage portion of salary.

• Variables, formulas, and accumulators track and evaluate the base days for payment in each month for each pay type.

• Formulas calculate average monthly remuneration for appraisal months during which the employee worked sufficient base days.

Monthly Standard Remuneration and Grades

PeopleSoft delivers and maintains the Monthly Standard Remuneration table. View the values and grades in this table on the SI Standard Remun (social insurance standard remuneration) page.

Eligibility for Regular Decision or Occasional Revision

The system uses four subject indicators to track eligibility for occasional revision or regular decision during a salary pay run:

The system uses these subject indicators to determine which calculations to perform and which employees to select for reports.

Retroactive Increase or Decrease in Fixed Wages

When an employee has a retroactive increase or decrease in fixed wages, the system calculates the adjusted average monthly remuneration during the appraisal period if enough base days are in the month of retroactive payment. Eligibility for occasional revision is determined based on the adjusted average monthly remuneration.

Premium Calculations

This section provides important information that you should keep in mind about how the system determines:

• Premium calculations from salary.

• Premium calculations from bonus.

• Premium deductions for enrollments and terminations.

• Employer contributions.

Premium Calculations from Salary

The social insurance premiums for monthly salaries are calculated based on the monthly standard remuneration as of the end of the month, then deducted from the salaries that are paid in the following month.

The social insurance premiums that are deducted from salaries are calculated based on the values of the following data as of the end date of the month previous to the month in which payment is made:

• Employee’s monthly standard remuneration.

• Standard Remuneration Grade table.

• Premium rates that are set up for the establishment on the SI Premium Rates page.

• The employee's social insurance data that is entered on the Social Insurance Data page.

This means that for premiums deducted in May, the system uses values with an effective date as of April 30 of the same year. Make sure that the data that is effective at the end of a month is the data that you want to use for calculating premiums that are deducted in the following month.

Note. The social insurance premiums are calculated based only on the monthly standard remuneration as of the end of the month; the actual salary payment in that month does not affect the premiums at all.

Premium Calculations from Bonus

The social insurance premiums that are deducted from bonuses are calculated based on the values of premium rates that are set up for the establishment on the SI Premium Rates page with the effective date as of the end of the month when the bonus is paid. The standard bonus remuneration that is used for the calculation is the actual gross bonus amount truncated to the nearest thousand yen. The standard bonus remuneration is subject to caps for health insurance and employees pension insurance.

Premium Deductions for Enrollments and Terminations

The system checks the employee's social insurance data to determine whether an enrollment or termination change reason exists in the month of payment or the previous month. If an enrollment or termination change reason exists, the system calculates the appropriate deduction from salaries.

Note that the social insurance termination data must be entered before the payee's last payments are processed.

For example, an employee's last day is May 10 and the pay period of her last payment is from April 16 through May 15. The payroll is processed on May 20. In this example, before her last payment is processed on May 20, you must enter her social insurance termination data with an effective date of May 11.

Employer Contributions

The system includes the payer social insurance flag variable (SC VR CALC ER FLG), which indicates if the employer contributions are calculated. If this flag is selected, the system calculates the following premiums for employers and employees:

• Health insurance.

  The system calculates the employer contribution of health insurance as variable SC VR HEL CO and saves the data in the writable array GPJP WA SCRPT.

• Nursing care insurance.

  The system calculates the employer contribution of nursing case insurance as variable SC VR NUR CO and saves the data in the writable array GPJP WA SCRPT.

• Pension insurance.

  The system calculates the employer contribution of pension insurance as variable SC VR PEN CO and saves the data in the writable array GPJP WA SCRPT.

• Pension fund.

  The system calculates the employer contribution of pension fund as variable SC VR FND CO and saves the data in the writable array GPJP WA SCRPT.

You can set contribution rates for health, nursing care, pension, and pension fund insurance premiums on the SI Premium Rates page.

See Setting Up Social Insurance Premium Rates.

In addition, the system calculates the contribution for child benefit. This contribution is based on the total pension remuneration and is calculated as part of the Social Insurance Check report.

See Also

Setting Up for Social Insurance Processing

Entering and Updating Employee Social Insurance Data

Processing Terminations

Viewing Delivered Earnings and Deductions for Social Insurance

Global Payroll for Japan delivers the following deductions to calculate and track social insurance premiums:

Global Payroll for Japan delivers to the following earnings to track monthly remuneration:

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Japan. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook.

See Also

Viewing Delivered Elements and System Data

Prerequisites

You must do the following tasks before you can calculate social insurance premiums:

• Set up social insurance establishments.

• Set up social insurance premium rates.

See Also

Setting Up for Social Insurance Processing

Preparing Employee Social Insurance Payee Data

This section provides an overview of preparing employee social insurance data and discusses how to:

• Enter and update employee social insurance data.

• Manage social insurance dependent data.

Overview of Preparing Employee Social Insurance Data

Enter or update an employee’s monthly remuneration amount and other social insurance personal information on the Social Insurance Data page. Manually enter this information when you initially set up the system and when you enroll a new employee. The system automatically updates the monthly remuneration amount when you run the Update SI Monthly Remun process (GPJP_UPD_REM). You can then edit the data.

Understanding Effective Dates

The following list explains the effective date for occasional revision and regular decision that is entered by the Monthly Remuneration Update process:

• Occasional revision.

  The effective date of the revised monthly standard remuneration and grade is the first day of the month after the payroll month for which the eligibility for occasional revision is established.

  For example, if the payee becomes eligible for occasional revision when you run the occasional revision processing after finalizing May payroll, the effective date of the revised monthly standard remuneration grade is June 1. The social insurance premiums for June, which are calculated with the new grade, are deducted from the payee’s salary in the July payroll.

• Regular decision.

  The effective date of the revised monthly standard remuneration and grade is September 1. The social insurance premiums for September, which are calculated with the new grade, are deducted from the payee’s salary in the October payroll.

Calculating Standard Remuneration and Premiums for Multiple Jobs

When an employee receives salaries from multiple jobs, monthly remuneration is calculated by adding the salaries paid from all jobs. Monthly standard remuneration is calculated by the Occasional Revision or Regular Decision processes based on the monthly remunerations for the appraisal months. Social insurance from salary is calculated based on the monthly standard remuneration and deducted from the salary that is paid from the employment record number that the user assigned on the Social Insurance Data page.

When an employee receives bonuses from multiple jobs, the standard bonus is calculated by adding the bonuses paid from all jobs. Then, social insurance from the bonus is calculated based on the standard bonus, and deducted from the bonus that is paid from the employment record number that the user assigned on the Social Insurance Data page.

The following table shows an example of an employee who has two employment records:

The following steps describe how to calculate social insurance when salaries are paid from more than one job:

1. Create five user-defined earnings elements (these are not delivered by PeopleSoft):

   • Separately Paid Cash Remuneration (Salary)—This should be accumulated to the Total Amount of Cash Remuneration (Salary) (ER AC CASH REM SAL) accumulator.

   • Separately Paid Non-Cash Remuneration (Salary)—This should be accumulated to the Total Amount of Non-Cash Remuneration (Salary) (ER AC NCSH REM SAL) accumulator.

   • Separately Paid Fixed Wage—This should be accumulated to the Total Amount of Fixed Wage (ER AC FIX WAGE SAL) accumulator.

   • Separately Paid Cash Remuneration (Bonus)—This should be accumulated to the Total Amount of Cash Remuneration (Bonus) (ER AC CASH REM BON) accumulator.

   • Separately Paid Non-Cash Remuneration (Bonus)—This should be accumulated to the Total Amount of Non-Cash Remuneration (Bonus) (ER AC NCASH REM BO) accumulator.

2. Add the earnings that you set up in step 1 into the Process List and the Element Group.

3. Use positive input to enter remunerations paid from Employment Record Number 1 into the corresponding earnings in Employment Record Number 0.

   The combined Social Insurance Premium for Employment Record Numbers 0 and 1 is calculated by the payroll process for Employment Record Number 0.

Pages Used to Prepare Employee Social Insurance Data

See Also

Defining Calculation Elements

Entering and Updating Employee Social Insurance Data

Access the Social Insurance Data page.

Effective Date	Enter the date on which this page's information takes effect. By using an effective date prior to the date upon which the payroll system was global payroll, the system enables you to enter informational data that will not be included in any global payroll calculation. In this case, the system doesn't validate the consistency between the employment record number on the Social Insurance Data page and the pay system flag on the Job table.
Empl Rcd Nbr (employment record number)	Enter the employment record number to which the system will apply the social insurance deduction. You can link the social insurance data only to the employment record number whose current pay system flag on the Job table is Global Payroll.
Eligibility Enrollment Date	Enter the date on which the employee is eligible for enrollment in the social insurance establishment. The system does not use this field. Instead, the system considers the effective date of the change reason of new enrollment or re-enrollment as the eligibility enrollment date.
Change Reason	Enter the value used to track the Enrollment/Termination status of social insurance. Values are: New enrollment. The system uses the effective date as the enrollment date for eligibility into the social insurance establishment for social insurance deductions. The SI Create Other Report File process picks up the rows with this Change Reason when it creates the Enrollment Report. Re-enrollment. The system uses the effective date as the enrollment date for eligibility into the social insurance establishment for social insurance deductions. The SI Create Other Report File process picks up the rows with this Change Reason when it creates the Enrollment Report. Loss by Death. The system uses the effective date as the termination date for eligibility into the social insurance establishment. The SI Create Other Report File process picks up the rows with this Change Reason when it creates the Termination Report. Loss by Age. The system uses the effective date as the termination date for eligibility into the social insurance establishment. The SI Create Other Report File process picks up the rows with this Change Reason when it creates the Termination Report. Loss by Other Reason. The system uses the effective date as the termination date for eligibility into the social insurance establishment. The SI Create Other Report File process picks up the rows with this Change Reason when it creates the Termination Report. Occasional Revision: This value is set by the Update Social Insurance Monthly Remuneration process when the payee is subject to occasional revision. Regular Decision: This value is set by the Update Social Insurance Monthly Remuneration process when the employee is subject to regular decision. Other: Use this value when changing social insurance data. For example, you can create a new effective-dated row to change the health insurance card number or pension fund number Excluded: Excluded from social insurance premium deduction. Use this value to specify the employment record from which you do not want to deduct the social insurance premium if the payee meets both of the following conditions: The employment record number was changed in the middle of a month. The payee stayed in the same social insurance establishment. If you do not select an employment record, the system will deduct social insurance premiums from multiple employment records. You should create the data with the Effective Date set to the end date of the month previous to the month when the Employment Record changes.
SI Establishment Number (social insurance establishment number)	The system calculates the employee’s premiums using the rates that you defined for the establishment you select here.
Maternity Leave	Select if the employee is on maternity leave. Social insurance premiums are not deducted for employees on maternity leave.
Part-time	Select if the employee works part-time. The system uses this value when calculating total monthly remuneration in the regular decision process and when creating the Monthly Standard Remuneration Regular report.
Amount of Monthly Remun (amount of monthly remuneration)	When the Change Reason is New Enrollment, Re-enrollment, or New Enrollment after Loss the system calculates this value as the sum of the monthly cash and non-cash remuneration. The system updates this value when you run the Monthly Remuneration Update process. If the employee had a retroactive pay adjustment during the calculation period, the system enters the adjusted average monthly remuneration. The system determines the employee’s monthly standard remuneration and standard remuneration grades based on this value.
Monthly Cash Remun (monthly cash remuneration)	Enter the expected monthly cash remuneration when the payee is enrolled. The system uses this field to generate the Amount of Monthly Remun. This field becomes visible only when the Change Reason is New Enrollment or Re-enrollment.
Monthly Non-Cash Remun (monthly non-cash remuneration)	Enter the expected monthly non-cash remuneration when the payee is enrolled. The system uses this field to generate the Amount of Monthly Remun. This field becomes visible only when the Change Reason is New Enrollment or Re-enrollment.

Standard Remuneration and Grades

Displays the monthly standard remuneration and the standard remuneration grade based on the value in the Amount of Monthly Remun field for the effective date.

These values are display only and are not saved to a table.

Nursing Care Insurance

Pension Insurance

Updating Last Action

The system completes the following fields depending on how the data is entered or updated:

Managing Social Insurance Dependent Data

Access the Social Insurance Dependent Data page.

Select Insurant of Health Insurance if the dependent is included in the employee's health insurance plan.

Preparing for Monthly Standard Remuneration Reports

This section provides an overview of monthly standard remuneration reports and discusses how to:

• Run the Monthly Remuneration Load Process.

• View and Edit Monthly Remuneration Calculations.

• Update Employee Social Insurance Data.

Understanding Monthly Standard Remuneration Reports

The Monthly Remuneration Load process (GPJP_LD_REM) gathers information from Human Resources and Global Payroll tables and updates the Monthly Remuneration Results table (GPJP_MTHRMN_TBL). That table is the data source for one page and three monthly remuneration reports that are delivered by PeopleSoft. You can create your own Structured Query Reports (SQRs), application messages, or electronic data files that access data on the Monthly Remuneration Results table.

Here’s how you prepare for monthly remuneration reporting:

1. Finalize the salary payroll run.

2. Run the Monthly Remuneration Load Application Engine process (GPJP_LD_REM).

3. View and correct results of the monthly remuneration calculations on the SI Monthly Remuneration Results page.

4. Run the following monthly standard remuneration reports:

   • Monthly Standard Remuneration Revised report.

   • Monthly Standard Remuneration Regular report (for June payroll only).

   • Monthly Standard Remuneration (summary) report (for June payroll only).

5. Run the Monthly Remuneration Update Application Engine process (GPJP_UPD_REM).

Pages Used to Prepare for Monthly Standard Remuneration Reports

Running the Monthly Remuneration Load Process

Access the Load SI Monthly Remun page.

The Monthly Remuneration Load process loads the Monthly Remuneration Results table (GPJP_MTHRMN_TBL).

The payroll must be finalized for the calendar group ID that you select; otherwise, the system issues an error message. The process uses the payment dates to determine for which month the calendar group applies. The following table lists the eligibility subject indicators for which the process loads data according to the month of the calendar group ID:

Viewing and Editing Monthly Remuneration Calculations

Access the SI Monthly Remun Results page.

An application engine will populate the fields on this page. You can edit many of them if needed.

Remuneration in Assessment Months

View or update the amount of cash and non-cash pay that is subject to social insurance premium for each month.

Revised Monthly Remuneration

You can manually update the Total Amount, Average, and Revised (HIS and EPI) values in this group box. The system does not automatically recalculate the values of these fields even when you change the value in the Monthly Cash Remun or Monthly Non-Cash Remun fields. When you save the page, a warning message advises you to manually update these fields if values have changed.

Remarks

Fixed Wages Change

The system completes the following fields depending on how the data is entered or updated:

See Also

Understanding Social Insurance Rules

Updating Employee Social Insurance Data

Access the Update SI Monthly Remun page.

Run the Monthly Remuneration Update process to update the amount of monthly remuneration on the Social Insurance Data page for employees whose subject indicator is Occasional Revision or Regular Decision. Use the Selection Criteria field to select the monthly remuneration result data to be printed on the report.

This process uses the same run control page as the Monthly Remuneration Load process.

See Also

Running the Monthly Remuneration Load Process

Checking Social Insurance Calculations

This section provides an overview of social insurance calculation checks and discusses how to:

• Create the SI Premium Summary report.

• Create the SI Premium Inquiry report.

Understanding Social Insurance Calculation Checks

Global Payroll for Japan calculates social insurance premiums and creates the employee and employer deductions. The social insurance provider also calculates these premiums independently. The social insurance check report enables you to compare these values. To do so, you:

1. Receive the premium payment documents from the provider.

   The provider should send a payment notification, detail statement, and a change statement for the previous month.

2. Compare the provider's data with your calculations using the SI Premium Summary report and the SI Premium Inquiry report.

   The SI Premium Summary report lists the following information for an establishment ID: employee and employer premium amounts for salary and bonus payments and the number of insurants by grade.

   The SI Premium Inquiry report lists, by establishment ID, those payees whose premiums have changed in the month.

Pages Used to View Premium Reports

Creating the SI Premium Summary Report

Access the SI Premium Summary Rpt JPN page.

Report Request Parameter(s)

Select the object year, month, and SI establishment for which you want to run the report. For example, if you would like to print the summary for the premium that is deducted and paid to the social insurance provider in March, you should select 03 for the Month.

Creating the Social Insurance Premium Inquiry Report

Access the SI Premium Inquiry Rpt JPN page.

Object Year and Month

Enter the month and year for which you want to run the report. For example, to report the difference between the premiums that are deducted and paid to the social insurance provider in February and March, you should select 03 for the Month.

Report Request Parameter(s)

Select an option to find the payees whose corresponding premiums have changed in the current month. Select multiple options to search for payees whose premiums have changed for all of the corresponding premiums. For example, if Health Insurance and Nursing Care Insurance are selected, the system lists the payees whose health insurance premium and nursing care premium have changed between the previous and current months.

If you do not select a parameter the report will display the social insurance premiums of all the payees, even when the premiums are unchanged.

Running Social Insurance Reports

This section provides an overview of social insurance reports and lists the pages used to run them.

Understanding Social Insurance Reports

You can print the following reports:

• Monthly Standard Remuneration Revised report (GPJPSC01), which you submit monthly.

• Monthly Standard Remuneration Regular report (GPJPSC02), which you submit annually.

• A summary of monthly standard remuneration (GPJPSC03) that you can use to complete the Monthly Standard Remuneration Summary report.

• Bonus Payment Detail report (GPJPSC05).

• Bonus Payment Summary report (GPJPSC06).

• PI 70 Years Old Employees report (GPJPSC04), which you use to review and update the Eligibility for Voluntary Enrollment for Elderly field on the Social Insurance Data page.

The monthly standard remuneration reports are provided in the format for the Tokyo municipality. You can modify the format as required.

The following topics provide more details about these reports.

Monthly Standard Remuneration Revised Report

Submit this report to the social insurance provider after each salary pay run in which employees exist who are subject to occasional revision. The report lists the following information for all employees whose subject indicator is Occasional Revision (fixed wages increased or decreased two months ago resulting in a change of standard remuneration grade by two grades or more):

• Health card number, name, birth date, and type.

• Base days, cash, non-cash, and sum of remuneration for each of the three months in the assessment period.

• Total of monthly remuneration, as well as current and revised standard remuneration for health insurance and pension insurance.

• Amount of retroactive pay, difference of fixed wages, and effective month.

Monthly Standard Remuneration Regular Report

Submit this report to the social insurance provider annually by the tenth of July. The report lists the following information for employees whose subject indicator is Regular Decision:

• Health card number, name, birth date, and type.

• Base days, cash, non-cash, and sum of remuneration for April, May, and June of the current year.

• Total of monthly remuneration, as well as current and revised standard remuneration for health insurance and pension insurance.

• Amount of retroactive pay, difference of fixed wages, and effective month.

Summary of Monthly Standard Remuneration Report

Use the information in this report to complete the Monthly Standard Remuneration Summary report that you submit annually to the social insurance provider with the Monthly Standard Remuneration Regular report. This report lists the following information for each establishment:

• The number of employees who became insured between June 1 and July 1.

• The number of employees submitting the Monthly Standard Remuneration Regular report.

• The number of employees who are subject to occasional revision in July.

• The health card number and name of each employee who might be subject to occasional revision in August and September.

Social Insurance Bonus Payment Detail Report

Submit this report each time a bonus is paid. This report lists:

• Health insurance card number, birth date, name, and type.

• The cash bonus amount.

• The non-cash bonus amount.

• The total bonus amount.

Social Insurance Bonus Payment Summary Report

Submit this report each time a bonus is paid. For each establishment number, this report lists:

• The number of bonus payees.

• The total amount of the bonus.

• The number of insured employees.

PI 70 Years Old Employees Report

The report lists employees who became ineligible for Employees’ Pension Insurance premium due to reaching the age of 70, along with their names, employee IDs, genders, supervisor levels, and whether they are eligible for voluntary enrollment. It also lists, for each establishment number and department number if you specified these parameters, the total number of employees who became ineligible and the total number eligible for voluntary enrollment.

The report determines which employees are age 70 or over as of the date that you enter as the object date on the run control page.

Pages Used to Run Social Insurance Reports

Creating Social Insurance Report Data Files

This section provides an overview of social insurance report data files and discusses how to:

• Create remuneration report files.

• Create bonus report files.

• Create the enrollment, termination, and address change report files.

Understanding Report Data Files

In addition to the printed reports listed previously, you can also submit some social insurance reports electronically. You can create the following files for the following reports:

• Monthly Standard Remuneration Revised report.

• Monthly Standard Remuneration Regular report.

• Bonus Payment report.

• Enrollment report.

• Termination report.

• Address change report.

Three processes, and therefore three run control pages, are used to create these files:

• Remuneration report file creation.

• Bonus report file creation.

• Other report file creation.

Each of these processes has the same basic structure. First, they select the report data from the appropriate tables. Next, the system validates the content and the format of the report files. Last, the system places the data to a file.

If errors are found during the validation step, the system creates a detailed log file for each error that is detected. The error file includes the record row number, employee ID, health insurance card number, name, report type, field name containing the error, and an error description. The error file name follows the format gpjp_sc_det_log_process instance number.csv.

When the data is placed in the file, commas are replaced with spaces. When creating the file handle, you should not use the extension .csv.

Remuneration Report Files

The process that is used to create both the Monthly Standard Remuneration Report (Regular) and the Monthly Standard Remuneration Calculation Report (Revised) selects rows from the Monthly Remuneration Results Record (GPJP_MTHRMN_TBL), whose object date (GPJP_OBJECT_DATE) and social insurance establishment (GPJP_TAX_ESTAB) match the values on the SI Create Remun Rpt File JPN page. The selected rows are extracted and used to create the report file.

Additionally, for the Monthly Standard Remun Calc Report (Revised), the process selects rows where the subject indicator (GPJP_SUBJECT_IND) is occasional revision. For the Monthly Standard Remun Calc Report (Regular), the process selects rows where GPJP_SUBJECT_IND is regular decision.

Note. Prior to creating the remuneration report files, you must run the load social insurance monthly remuneration process.

Bonus Report Files

The process used to create the bonus report file selects data from the Global Payroll result table (GPJP_WA_PIN) for the payees who are insured as of the end of the bonus payment month. The selected rows are extracted and used to create the report file.

Other Report Files

The process that is used to create the enrollment report, termination report, and address change report files selects data from the employee social insurance payee table (GPJP_SC_PYE_DTA) where the effective date is within the period and the SI establishment is equal to the value that is selected on the SI Create Other Report File page.

In addition, the change reason should match the following criteria for each file:

To create the Address Change report data file, the system looks for the following conditions:

• An active row is on the Address table (ADDRESSES) whose effective date is between the period that is specified on the SI Create Other Report File page and the address type is Home.

• For the effective date of the active row used above, an effective row is on the social insurance payee table whose change reason is not Excluded.

• No row is on the social insurance payee table whose effective date is equal to the address row listed previously whose change reason is New Enrollment or Re-enrollment.

Pages Used to Create Social Insurance Report Data Files

Creating Remuneration Report Files

Access the SI Create Remuneration Report File page.

Report Selection

Select which report data to use when creating the file.

File Output Location

Creating Bonus Report Files

Access the SI Create Bonus Report File page.

File Output Location

Creating the Enrollment, Termination, and Address Change Report Files

Access the SI Create Other Report File page.

Report Selection

Select which report data to use when creating the file.

File Output Location

Preparing for Social Insurance Premium Payment

Use the Global Payroll generic reporting functionality to prepare a report of earnings and deductions that you can use to review the amount of social insurance premium to be submitted to the insurance provider each month.

See Also

Running Generic Global Payroll Reports for Japan