How do big companies pay their employees residence tax?

I manage a small company and I had to pay the residence tax for me and the 2 people that worked with me a few weeks ago.

The process was horrible: Tons of payslips, going physically to the bank for payment, setting individual transfers (that my bank, Mizuho, did for me tho), adding up all the quantities…

I was wondering how do X000 employees companies manage this. Sounds hell. Either there is someone (several people?) diligently doing this in each company or there is an easier way…

For context: When you ask your employer to "pay the residence tax for you" is literally the same idea that when you have to do it: The company, not you, receives the payslips from your 区 / 市 and they go to the bank and pay it (I don't recall a barcode to pay it in the combini)

by alvaroga91

8 comments
  1. They hire a payroll company whose entire job is to do this.

    Just like how they’d hire cleaning agencies so they don’t need to maintain a team to clean the floor.

  2. There should have been 12 payslips. That doesn’t change depending on how many employees you have. You can input the information into eltax and then pay online. The numbers will be huge, but the process itself is the same.

    Also, remember that big companies have a big HR department who subsequently deal with the data input for each employee.

    I recommend using eltax next time.

  3. If the company is small medium sized (<1000 workers) they probably outsource to accounting and payroll firms.

    If it is a giant company like Toyota or Mitsubishi holdings, they have their own accounting, payroll and even health insurance.

  4. Best of luck with this. I just had my shitty Eikaiwa tell its 15 employees that we forgot to do “special collection” this year. Please pay it by yourself.
    You are doing a good thing.
    I hate my company! They supposedly were collecting it all this year and they made a mistake also last year that cost me a 3 year visa. Instead I am on a 1 year visa thanks to their laziness. Payment of city taxes has become a key point at immigrations.
    Please don’t be like my shitty Eikaiwa lazy Japanese company.

    Death and taxes are the only two guaranteed things in life.

  5. Companies that organize the payment of city taxes for their employees don’t receive 12 slips of paper to pay monthly. City offices send out all the data, usually on A3 sheets of paper, which hold around 6-10 enployees data and the monthly payment per person – in a long list.

    All this data is imported into the payroll database, per employee, how much needs to be deducted from salary each month, and paid to which municipality (Each ward / city has it’s own code) After each pay day the accounting section will take the payroll data and organize payments to each city, just as they organize income tax payment to central government and cross-check the Shakai Hoken payment that has been automatically deducted from the company’s bank account by the Shakai Hoken agency.

    In short, it’s all automatic.

  6. mine (>1200) outsources to Payroll like the payroll company whose name is also Payroll. They handle everything wage and money related.

    They also get my juuminzei slip which I have to tell them to send it to me, something only made available at pay day for June which is annoying cause I want to know how much I’m paying this year as soon as the slips are sent.

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