Services
Payroll Services
Providing all-around bilingual support within a highly secured information management environment
Payroll processing is a comprehensive and detailed operation which involves regulatory compliance with tax laws, labor laws, and more. This is why payroll outsourcing is a very effective solution for achieving your business objectives. Social insurance services, which are closely linked with payroll services, are provided by APO-Social Insurance Consultants Corporation with our one-stop service concept.
- Monthly payroll and bonus processing with e-payslips
- Payment of payroll, taxes, and social insurance
- Year-end tax adjustments
- Payroll accounting
- Expatriate payroll with gross-up calculation
- Social insurance administration
- Resident tax administration
- Various statutory payroll tax and social insurance reports
- Advice on payroll tax, work rules and labor management, and more
- Employees’ helpdesk service
Information Security
In keeping with our dedication to maintaining complete information security, APO has achieved ISMS (ISO27001) certification in 2007 and ISMS Cloud Security (ISO27017) certification in April 2020.
Information Security and Internal Controls
In addition to maintaining a complete information security system, we have established internal controls for payroll operations and general controls across our IT infrastructure. We receive annual reports from our auditing firm confirming the appropriateness of our internal controls’ design and effectiveness, in accordance with the standards for assurance engagements set forth by the American Institute of Certified Public Accountants, the Japanese Institute of Certified Public Accountants, and International Standard on Assurance Engagements (ISAE) No. 3402—the “Assurance Report on Internal Controls over Fiduciary Services.”
Case Studies
Salary Start-Up for a Representative Office in Japan
We assisted an IT-related company headquartered in North America that had established a representative office to service its Japanese clients. Upon setting up the Japan office, the human resources manager at headquarters asked a variety of questions. It is difficult for HR personnel overseas to understand the unique rules and regulations in Japan—such as the tax calculation system, year-end adjustments, social insurance and labor insurance requirements, and regulations regarding overtime work—but thanks to detailed and timely explanations from our team of experts, the start-up went smoothly. Currently, our bilingual staff, who are well versed in Japanese tax laws, social insurance, and labor issues, provide daily back-office support in cooperation with their headquarters overseas so that expatriates can focus on their core business.
Outsourcing of Special Payroll for Expatriates
We helped the Japanese subsidiary of a foreign company that is required to perform special payroll calculations related to foreign expatriates who are seconded to overseas-affiliated companies. In the tax treatment of company housing rent, the amount to be borne by employees and executives (so-called “legal rent”) is calculated from the assessed value of fixed property tax. When an employee is posted overseas, we calculate the annual taxation of departure and non-resident payroll after departure. Furthermore, when an employee is paid a salary from Japan after being posted overseas, we estimate the annual amount of income tax and inhabitant tax to be paid by the employee as if they were in Japan and deduct the amount of annual tax from their salary to calculate the total salary amount. We are continuing to provide this subsidiary with highly specialized services that leverage APO’s strengths, such as grossing up the amount of tax owed.
