This guide explains how to reconcile employer contribution amounts for social insurance premiums.
What are employer social insurance contributions (= employer burden)?
For social insurance premiums such as National Pension, Health (Long-term Care) Insurance, Employment Insurance, and Industrial Accident Compensation Insurance, the premiums are split between the company and the employee.
National Pension: split equally between the company and the employee
Health (Long-term Care) Insurance: split equally between the company and the employee
Employment Insurance: consists of two types — unemployment benefits and employment stability/vocational skills development
Unemployment Benefits: split equally between the company and the employee
Employment Stability and Vocational Skills Development Program: borne by the company only
Industrial Accident Compensation Insurance: borne by the company only
Payroll Reconciliation – Employment Insurance Employment Stability and Vocational Skills Development Premium Reconciliation
While the National Pension and Health (Long-term Care) Insurance contributions are the same amount for both the company and the employee, the Employment Insurance Employment Stability and Vocational Skills Development premium is an amount borne solely by the company. To clearly display the employer contribution, a separate column has been added during reconciliation.
The Employment Stability and Vocational Skills Development premium is basically automatically calculated based on the employment insurance rate.
However, since it is back-calculated from the employee\'s contribution without changing the standard monthly remuneration, a small discrepancy may occur between the calculated amount and the actual billed employment insurance premium due to rounding. In such cases, please manually enter the amount to correct the premium.
From the left menu, click [Payroll Reconciliation] → [Start Reconciliation], and check [Employment Insurance] in the [Deduction Items] step as shown below.
(👈🏻 Click) When reconciling using the standard monthly remuneration method
(👈🏻 Click) When reconciling using the standard monthly remuneration method
(👈🏻 Click) When reconciling using the public corporation notice amount method
(👈🏻 Click) When reconciling using the public corporation notice amount method
(👈🏻 Click) When reconciling using the insurance rate (rate) method
(👈🏻 Click) When reconciling using the insurance rate (rate) method
(👈🏻 Click) When Employment Insurance and Employment Insurance year-end adjustment have been added separately under Other Deductions
(👈🏻 Click) When Employment Insurance and Employment Insurance year-end adjustment have been added separately under Other Deductions
In the [Reconciliation Review] step, you can check the details as shown below.
(👈🏻 Click) When reconciling using the standard monthly remuneration method
(👈🏻 Click) When reconciling using the standard monthly remuneration method
(👈🏻 Click) When reconciling using the public corporation notice amount method
(👈🏻 Click) When reconciling using the public corporation notice amount method
(👈🏻 Click) When reconciling using the insurance rate (rate) method
(👈🏻 Click) When reconciling using the insurance rate (rate) method
(👈🏻 Click) When Employment Insurance and Employment Insurance year-end adjustment have been added separately under Other Deductions
(👈🏻 Click) When Employment Insurance and Employment Insurance year-end adjustment have been added separately under Other Deductions
Social Insurance – Adding Industrial Accident Compensation Insurance Notice Details
Since industrial accident compensation insurance premiums are entirely borne by the company with no employee contribution, please upload the amount from the
[Social Insurance] menu rather than through payroll reconciliation.
From the left menu, go to [Payroll Reconciliation] → [Social Insurance] → [Industrial Accident Insurance Notice Details] tab and click [File Upload].
Be sure to enter the attribution month and workplace management number, then upload the EDI file downloaded from the public corporation.
After uploading the file, you can use the checkboxes to delete records by individual member or by uploaded file.
Payroll Summary Table Download
You can view at a glance both the employee contributions deducted during payroll reconciliation and the employer contributions including industrial accident insurance premiums.
From the left menu, click [Payroll Reconciliation] → [Past Reconciliation History] tab, then click [Download Payroll Summary Table] in the upper right.
After searching by [Attribution Month] or [Payment Month], you can select and download the payroll ledger details and industrial accident insurance notice details.
In the [Social Insurance Premiums] sheet of the downloaded Excel file, you can view both employee contributions and employer contributions!
FAQ
Are employer social insurance contributions also calculated for transferred payroll reconciliations?
Are employer social insurance contributions also calculated for transferred payroll reconciliations?
The employer social insurance contribution is back-calculated based on the employee (member) contribution entered at the time of payroll transfer. In the payroll summary table, the corresponding amounts are combined and displayed together.
An error occurs when uploading the industrial accident insurance notice details EDI file and the upload fails.
An error occurs when uploading the industrial accident insurance notice details EDI file and the upload fails.
If you attempted to upload the notice details file but encountered an error and the upload failed, please check the following.
Please verify that the resident registration number entered in each member\'s profile is correctly mapped to the resident registration number in the Excel file.
Please check that the employee ID is entered in the basic information section of the member\'s profile. For payroll reconciliation, entering the employee ID, resident registration number, wage contract information, and payroll payment information is mandatory!
Even if you do not use employee IDs internally, if you plan to use the flex payroll reconciliation feature, please enter an arbitrary employee ID.
