HR & Tax
The Japanese sales subsidiary of a Chinese manufacturer. Taking on HR and tax meant first checking and correcting the May and June payroll against each scheme in turn, then completing the withholding tax payment for January to June 2026 within the statutory deadline, under the special provision for due dates for withholding income tax.
Client
Published without the client's name at their request. The figures and dates shown are published with their permission.
2months
Of payroll reviewed and finalised
4schemes
Recalculated on their own separate bases
58days
From instruction to the payment being made
The withholding tax calculation rests on the payroll figures, so the order cannot be reversed.
Health insurance and employees' pension contributions are calculated not from what is actually paid but from the standard monthly remuneration on the determination notice issued by the pension office. Taking the work on meant checking, case by case, which document each figure had come from.
Withholding income tax, health insurance, employees' pension and employment insurance each rest on a different basis and change their rates at different times. One calculation cannot carry all four.
The payment covers both May and June, so both months had to be corrected and signed off by the client before it could be made.
How finely to check, and what to close at a time. We settled those two things first.
Payroll items were separated by scheme and checked against the document each one rests on and the rate applying this year.
Collect, check, raise, correct, confirm — run through once per month, so nothing was left to be checked in bulk just before payment.
Closing the payroll month by month is what made the statutory deadline reachable.
12 May 2026
Monthly payroll review and the first-half withholding tax payment taken on.
4 June 2026
Items needing confirmation identified, on both the basis of calculation and the rates applied.
5–7 June 2026
The reasoning and the basis for each figure explained, and a standard set for how payslips are produced.
8 June 2026
Final version received and the May payroll settled.
5–7 July 2026
The standard set in May applied, with support through producing the June payroll.
8 July 2026
Both months complete, and the statement ready to prepare.
9 July 2026
The Statement of Collected Income Tax for January to June 2026 submitted, and the tax remitted on the client's behalf.
The basis of calculation and the rates applied were checked for May and June, producing a confirmed set of payroll figures the tax work could rest on.
On those figures, the Statement of Collected Income Tax for January to June 2026 was submitted and the tax remitted within the statutory deadline.
Setting out the source document, rate and treatment for each scheme means the same questions do not have to be asked again.
Because the withholding calculation rests on payroll figures, going back to the basis of each one at the start of an engagement is what makes the deadline reachable.
Withholding income tax, health insurance, employees' pension and employment insurance differ in both their basis and when their rates change. Splitting the checklist by scheme is the practical way to stop something being missed.
Close the payroll monthly and the paperwork will not pile up before a half-year or year-end deadline.
There is no charge for an initial consultation. We can work in English, Japanese or Chinese, around where your business currently stands.
