The year-end adjustment, which is carried out from around November to the end of January every year, is an operation to ensure that the income tax of salaried employees is paid in the correct amount.
For employees,
- Spouse special deduction application form
- Insurance premium deduction form for salaried workers
- Dependent deduction declaration form for salaried employees
Please fill out the following. In addition to this,
- Life insurance premium deduction certificate
- Withholding tax slip from previous job
We will also ask you to submit other documents.
Even if you find errors in the contents of the documents after you have submitted them, there is no need to panic. Even if you discover any deficiencies in your year-end adjustment documents after they have been submitted, you can have them rewritten to make sure they are accurate.
It would be a good idea to inform your employees that as soon as they notice a mistake, they should report it to the person in charge of year-end adjustment.
Table of contents [ hidden ]
- 1. How to correctly correct year-end adjustment mistakes
- 2. How can I prevent document deficiencies for year-end adjustment?
- 3. Year-end adjustment is a task that affects the entire company! Let’s prepare well
1. How to correctly correct year-end adjustment mistakes
Corrections using correction fluid are not permitted. Draw a double line where you made a mistake and ask them to rewrite the correct information nearby.
Then, put a correction stamp over the double line. Due to the nature of the year-end adjustment documents, we ask that you do not use the Shachihata stamp.
Also, if there are so many mistakes that it becomes difficult to confirm the corrections, you may want to request a new document to be rewritten.
1-1. Year-end adjustment submission deadline is January 31st
Regarding corrections to this year-end adjustment, as long as the deadline set by each company has not passed, you can have it corrected.
The final deadline for year-end adjustments is January 31st, so please ask employees who have any corrections to be made to their documents by that date.
However, making corrections too close to the deadline is not good for the company. Submitting documents just before the deadline can be a huge burden for those in charge of year-end adjustment documents.
When you notice a mistake in a document, be sure to check with your employee and ask them to correct it.
2. How can I prevent document deficiencies for year-end adjustment?
Year-end adjustment documents are filled out every year, but since it only happens once a year, many people get confused about how to fill it out each time.
Also, it can be said that it is unique to the year-end adjustment that there are many terms that are not normally used.
A specific example is annual income and income. When we say income, it is easy to confuse it with the amount of salary, but income is the amount of annual income minus employment income deductions.
You can avoid making mistakes by printing out these information along with sample entries and handing them over.
2-1. Give year-end adjustment documents to employees early
Business gets busy at the end of the year, so prepare your year-end adjustment documents as early as possible. If you are late in delivering documents, submission will be delayed, and your schedule will be pushed back accordingly.
Furthermore, you will also have to check the submission of attached documents, so delays in submission may cause problems in various operations.
Therefore, it is a good idea to encourage your employees to submit documents as early as possible by sending them emails or sending them documents.
2-2. Documents should be checked by multiple people
Don’t just have one person check the year-end adjustment documents you have submitted, but have multiple people check them to ensure there are no mistakes.
Additionally, the year-end adjustment is an area where revisions are made quite frequently. The official website of the National Tax Agency and the year-end adjustment booklet published by the National Tax Agency clearly contain the revised contents, so it is important to always be aware of the changes.
2-3. It is easy to make mistakes when signing up for insurance.
A common mistake in the year-end adjustment documents is that the person has newly enrolled in life insurance or earthquake insurance, which is the first time he or she has purchased the insurance. In addition, this is often seen when there is a change in the family structure, such as marriage, divorce, or childbirth.
When you enroll in new insurance, you will need to make corrections, and the same procedure will be required when there is a change in your family structure.
Similarly, if the year-end adjustment documents were accurate when you submitted them, but you carried out such procedures between the date of submission and December 31st, you will also need to make corrections.
2-4. Don’t forget to check your spouse’s information as well.
There are also cases where mistakes are made when there is a change in the spouse’s annual income. Spouses whose income is below a certain level are considered dependents, and the spousal deduction is a system in which the income tax of the head of the household is reduced.
If the eligible spouse is a salaried employee, the spouse will be eligible for the spousal deduction if their annual income is less than 1,030,000 yen, but if it is more than that, the documents will need to be corrected.
Regarding dependents, errors may occur, such as “I recorded them as dependents even though they were dependents,” or “I recorded them as dependents even though they were already excluded from dependents.”
Incomplete documents for year-end adjustment are documents that may need to be corrected depending on subsequent changes, even if the contents were accurate when submitted. Even after you have submitted your application, you can make corrections until all procedures are completed.
Submitting documents just before the year-end adjustment deadline will cause great damage to the company, so to avoid such a situation, be sure to carefully prepare and submit documents with plenty of time to ensure there are no mistakes. .
2-5. Thoroughly check the attached documents
It is actually possible that there may be a mistake in the description of each document, such as a deduction certificate, that needs to be added to the year-end adjustment documents. In this case, it is necessary to contact the issuer of the exemption certificate and have them change the details to be accurate.
Please note that the reissue procedure will not be completed on the same day. Depending on the type of exemption certificate, it may take 1 to 2 weeks.
2-6. Employees may file their own tax returns
If an employee fails to notice a mistake in the year-end tax filing or is unable to meet the company’s deadline, the employee will have to file their own tax return.
When it comes to filing a tax return, you will have to do all the procedures yourself, and there is a high possibility that it will take more time and effort than rewriting the year-end adjustment documents.
It is important to make employees aware of these risks and have them submit their documents on time.
3. Year-end adjustment is a task that affects the entire company! Let’s prepare well
Year-end adjustment is a major task that affects the entire company.
If you overlook a mistake in the year-end adjustment documents submitted and then complete the year-end adjustment as an organization, it will be considered that you did not properly pay withholding income tax, and the company will be subject to penalties such as unpaid additional tax and late payment. Penalties such as taxes will be imposed.
Even if the cause is due to the documents submitted by the employee, the company will ultimately be penalized in this way, so the responsibility can be said to be significant.
In order to avoid inflicting a penalty on your company that should not have been imposed at all, it is important to carefully check the contents and have them correct any mistakes.
Year-end adjustment is a document that can easily be mistaken if not filled out carefully. You need to prepare it with the awareness that you will definitely pay income tax.
