◆“My Number” Use Will Begin January Next Year

All citizens will receive their My Number (Identification Number) from municipalities starting October this year, and the use of My Number will begin January next year.
Once it begins, companies must handle My Number of employees in occasions such as creating an income tax withholding slip and making social insurance premium payments. On March 9, Nippon Keidanren (Japan Business Federation) released a document titled “Requests Regarding the Preparations for the My Number System,” and has identified key points of preparation.

◆What Are the Necessary Preparations?

The above document states that companies must perform the following matters to prepare for the My Number System:

1. Identification of Applicable Business Operations
(1) Confirm documents that require the printing of My Numbers
•Documents related to taxes such as income tax withholding slips and payment records
•Documents related to health insurance, welfare pension insurance, and employment insurance
(2) Identify individuals who must provide their My Number
•Employees, etc. (including executives and part time workers), and their dependents
•Payee of compensations (fee for lectures and performances, etc.)
•Payee of real estate use fees and rent
•Payee of dividends

2. Examination of Policies and Measures
(1) Development of organizational structure
(2) Review of internal regulations
(3) Clarification of departments and individuals in charge
(4) Examination and clarification of personal identity and number verification methods
(5) Examination of physical information security control measures (area management, information leakage prevention, etc.)
(6) Development of My Number collection schedules

3. Announcement to Individuals Who Must Provide Their My Number
(1) Present a schedule leading up to the collection (clarification of the date on which their My Number will be collected)
(2) Education and training
(3) Define and present of the purpose of use

4. Repair Related Systems (If Your System Is Built In-House)
(1) HR payroll system
(2) Health insurance union system

5. Supervision of Contractors and Subcontractors
(1) Selection of contractors
(2) Creating a contract for necessary and proper supervision (including methods to understand how they are being handled)