2009560 - En MyNumber Infosession HCM 1.1

SAP Japan/Globalization Product Management JapanOctober 2014 (Last Update: Mar 2015)

Legal Change of Social Security and TaxNumber System in SAP ERP HCM

Customer

2014 SAP SE or an SAP affiliate company. All rights reserved. 2Customer

Change History

Version Page Changes Date Author

1.0 New Oct 22, 2014 SAP Japan

1.1 8 Update about the timing of Individual Numbercollection.

Mar 3, 2015 SAP Japan

1.1 14 Update about the guidelines provided by SpecificPersonal Information Protection Commission.


1.1 18-23 Refer to EN_Note2009560_RoughPlan.pdf forthe latest information.



Agenda

1. Overview of Legal Change2. Business processes to be influenced by Individual number and

Corporate Number3. Planned approach in SAP ERP HCM9 Master Data management of Individual number9 Statutory Reports

1.Overview of Legal Change


Social Security and Tax Number SystemOverview of Legal Change

Social infrastructure to identify the personalinformation which is handled in differentauthorities, such as Tax office, Pension office,Municipal offices etc.

A fairer and more just society Improved administrative efficiency Enhance public convenience Control own personal information with

protecting privacy

Acquirement of pension qualification, pensionconfirmation and payment

Acquirement of unemployment insurancequalification, insurance confirmation andpayment, Hello Work-related affairs

Collection of medical insurance premiums,Welfare benefits, public assistance etc

Social Security Notation on income tax

returns, notifications, records,etc., submitted to taxauthorities

Internal administrative workof tax authorities, etc

Tax

Payment of funding forrebuilding the livelihood ofdisaster victims

Preparation of disastervictimsb books, etc

Disaster response

Usa

ge

HP 2610 http://www.cas.go.jp/jp/seisaku/bangoseido/pdf/gaiyou_siryou.pdf


Personal Information in Social Security and TaxNumber System: NO central database

Each authorities will respectively keep the necessary personalinformation as they do today. The government will NOT build a centraldatabase for personal information.Each authorities will link up their own information with other authorities

for the legally defined purpose via network.



2 Numbers in Social Security and Tax NumberSystem

Corporatenumber

Individualnumber

Completeness (every person/legal entity will have own number)Unique number (no duplication)Visible number

12-digit number, which is related to the latest name, address,sex and birth date

Municipality will send notification. People will use one number for lifetime long in principle, but it

can be changed when necessary.

13-digit number for National and Municipal organizations,Private companies

National Tax Agency will send notification and announce thelist with name and address via website.


Planned timeline of Legal Change

2014 (H26) 2015 (H27) 2016 (H28)2013 (H25) 2017 (H29)

Preparation of details, such asCabinet orders, ministerial orders, etc

NotifyCorporatenumbers

Individual number card (with IC) will beissued when requested

Individual numbers must be filledin defined statutory forms.

Define PIA policy Start PIA operations

Legislationof

SocialSecurity

andTax

System NotifyIndividualnumbersPreparing details of

Corporate numbers must be filledin defined statutory forms.

Start operation ofNetwork system,My portal system2017/01 National org2017/07 Municipal

org

Monitoring network systems etcContinue monitoring on handling of personal info

with Individual numbers

Details of statutory formsmay be finalized with short

notification.

Municipal citywill sent

notification

Discussion to expandthe usage of

Individual numbersaround 2019

Employers maycollect Individual

Numbers from Oct2015



Individual Number card and Notification card

Notification cardIndividual Number card

With IC chipand photo

No IC chip,No photo

Municipalitywill send

notificationMunicipality willissue the cardon request.

More usage forpublic convenience


Individual Number card

Publicity material for the Social Security and Tax Number System (detailed version) http://www.cas.go.jp/jp/seisaku/bangoseido/pdf/en2.pdf http://www.kantei.go.jp/jp/singi/it2/senmon_bunka/number/dai2/gijisidai.html

With Electronic Certificate for eTAX, My portal etcPossible to use services stipulated in local government ordinances, such

as library services and issuance of seal registration certificates etc



Punishment is more severe thanother similar regulations


Publicity material for the Social Security and Tax Number System (detailed version) http://www.cas.go.jp/jp/seisaku/bangoseido/pdf/en2.pdf


Social Security and Tax Number System for Privatecompanies Basic requirements It is allowed to use Individual Numbers only for the purposes stipulated by law It is prohibited to request Individual Numbers for the purposes which is not stipulated by law It is required to confirm Identity when you received Individual Number It is required to take security measure to handle Personal information including Individual

numbers safely manners.

Health insunion

Pensionoffice

Job placementoffice LSSO

Taxoffice

Municipalcity

DC pensionOperationalMgmt Instit.

Cooperation Network System for Personal Information

Person in Charge ofAffairs Related to the

Individual Number

Statutory forms withIndividual numbers and

Corporate numbers

Employee

Speaker

Proxy may berequired

Confirm Identity

Confirm Identity

HCM dept FIN dept

Security measure is required tohandle Individual numbers safely

Person in Charge ofAffairs Using the

Individual Number

Vendor

Employee need to provideIndividual numbers of

family members

family

Private company


Further references

It is allowed to use Individual Numbers only for the purposes stipulatedby law. Itbs necessary to check whether the existing business process inyour company is correctly defined aligning with the relevant laws. Example) Benefit payment claim for Health Insurance should be done

between Health Insurance Union and Employee. But HR departmenthandles some of the processes in many Japanese companies. Thiswould be against the law if the form will contain Individual Numbers. Refer to Q&A page for further details. HP (FAQ) (4)

http://www.cas.go.jp/jp/seisaku/bangoseido/faq/faq4.html It is required to take security measure to handle Personal information

including Individual numbers safely manners. Refer to the guidelinesprovided by Specific Personal Information Protection Commission.

http://www.ppc.go.jp/files/pdf/261211guideline2.pdfQ&A http://www.ppc.go.jp/legal/policy/faq/


Social Security and Tax Number SystemSummary

# Requirement Description Remarks1 Numbers 2 numbers will be introduced:

z Individual numbers ()z Corporate numbers (15)

Individual numbers will be 12-digitnumbers, Corporate numbers will be 13-digit numbers

2 Use of IndividualNumbers

Use of Individual Numbers for any duty that is notstipulated by law is prohibited.15

Many statutory forms will requireIndividual numbers in HCM. The details willbe defined by Cabinet orders, ministerialorders etc.

3 Confirmation ofIdentity

It is required to confirm Identity when you receivedIndividual Number.16Identity confirmation with ID card with photo, such asIndividual Number card, driver license card etc.

4 Restrictions ofproviding PersonalInfo with Individualnumbers

It is prohibited to provide Personal Information withIndividual Numbers to others for any duty that is notstipulated by law.19

5 Collect and Storedata

It is allowed to collect and store data of the PersonalInformation with Individual Numbers only when thepurpose is stipulated by law.2028Punishment is more severe than other similarregulations6777

It is required to take Security measures tocontrol the access to Individual numbers.Data of Individual numbers should bedestroyed as soon as itbs no longer needed.

6 PIA process PIA process is defined by law.2627 PIA is not mandatory for privatecompanies. Health Ins Union may need it.

7 Use of Corporatenumbers

Use of Individual Numbers has not restrictions58The numbers will be announced in public website by NTA.

Many statutory forms will require thisnumber.

2. Business processes to be influencedby Individual number and CorporateNumber


Business processes to be influenced by Individualnumber and Corporate Number Refer to Note2009560_LC_Overview&BusinessProcess.pdf in SAP Note.2009560 for details of

examples of relevant business processes. http://service.sap.com/sap/support/notes/2009560

3. Planned approach in SAP ERP HCM

9 Master Data management of Individual number9 Statutory Reports

Refer to EN_Note2009560_RoughPlan.pdf in SAP Note.2009560 for the latest information. http://service.sap.com/sap/support/notes/2009560


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2009560 - En MyNumber Infosession HCM 1.1