8+ 所得補償保険所得税 For You

所得補償保険ってどんな保険？｜保険を比較･見直し･相談･学ぶ【Will Navi】 from www.nissen-life.co.jp

Introduction

In Japan, Sochu Hoken or income compensation insurance is a mandatory insurance policy taken out by employers to protect their employees in the event of an accident or illness that results in lost wages. In this article, we will explore the ins and outs of Sochu Hoken and how it impacts income tax.

What is Sochu Hoken?

Sochu Hoken is a type of insurance policy that provides financial support to employees who suffer from illness or injury and are unable to work. This insurance covers up to 80% of an employee's lost wages for up to one year. It is mandatory for all employers to take out this policy for their employees.

How Does Sochu Hoken Impact Income Tax?

Sochu Hoken premiums paid by an employer are tax-deductible. This means that the amount of money that an employer pays for Sochu Hoken can be deducted from their taxable income. Additionally, any benefits paid out to an employee are considered taxable income and must be reported when filing income tax returns.

Example:

If an employer pays 100,000 yen per year for Sochu Hoken and pays out 50,000 yen in benefits to an employee, the employer can deduct the 100,000 yen from their taxable income. The employee must report the 50,000 yen as taxable income.

Who is Covered by Sochu Hoken?

All employees in Japan who work more than 75 hours per month are covered by Sochu Hoken. This includes full-time employees, part-time employees, and contract workers.

What Does Sochu Hoken Cover?

Sochu Hoken covers the following:

Illness
Injury
Maternity leave
Childcare leave
Family care leave

How to Enroll in Sochu Hoken?

Employers are responsible for enrolling their employees in Sochu Hoken. Employees do not need to do anything to enroll in the program.

Conclusion

Sochu Hoken is an important insurance policy that provides financial support to employees who suffer from illness or injury. It is mandatory for all employers to take out this policy for their employees. Sochu Hoken premiums paid by employers are tax-deductible, and any benefits paid out to employees are considered taxable income.