Act on the Collection, etc. of Insurance Premiums of Labor Insurance

If the business operator fails to pay the stamp insurance premiums, the government decides the stamp insurance premiums payable by the business operator and give notice thereof to the business operator.

If the business operator fails to pay the stamp insurance premiums despite the fact that no legitimate grounds are found, the government collects the surcharges pursuant to the provisions of Order of the Ministry of Health, Labour and Welfare, in the amount corresponding to twenty five one-hundredth (25/100) of the amount of the stamp insurance premiums decided pursuant to the provisions of the preceding paragraph (if the amount includes a fraction less than one thousand yen, the fraction is rounded down); provided, however, that this does not apply to the cases where the amount of the stamp insurance premiums that the business operator has failed to pay is less than one thousand yen.

The provisions of Article 17, paragraph (2) apply mutatis mutandis to the cases where the surcharges are collected pursuant to the provisions of the preceding paragraph.

If an employer that employed a person prescribed in Article 22, paragraph (5) of the Employment Insurance Act (hereinafter referred to in this paragraph as the "person subject to the special rule") has failed to submit the notification under Article 4-2, paragraph (1) even though the insurance relation pertaining to employment insurance had been established pursuant to the provisions of Article 4, the employer (including a person who succeeds to the business of the employer; hereinafter referred to in this Article as the "eligible employer") may pay, as the special payment insurance premiums, the amount obtained by adding the amount specified by Order of the Ministry of Health, Labour and Welfare to the amount calculated, as specified by Order of the Ministry of Health, Labour and Welfare, as the amount equivalent to the amount pertaining to the person subject to the special rule out of the amount (limited to the amount of the portion corresponding to the employment insurance rate) of the general insurance premiums for which the eligible employer has not performed the obligation to pay pursuant to the provisions of Article 15, paragraph (1) (limited to those pertaining to the period from the day specified by Order of the Ministry of Health, Labour and Welfare prescribed in Article 14, paragraph (2), item (ii) of the Employment Insurance Act until the day of separation of the person subject to the special rule, for which the right to collect has been extinguished by prescription).

The Minister of Health, Labour and Welfare must recommend that the eligible employer pay the special payment insurance premiums; provided, however, that this does not apply if the recommendation cannot be made due to unavoidable circumstances.

The eligible employer, if it has received the recommendation pursuant to the provisions of the preceding paragraph, may state in writing to the Minister of Health, Labour and Welfare, as specified by Order of the Ministry of Health, Labour and Welfare, that it will pay the special payment insurance premiums.

The government, if it has received the statement pursuant to the provisions of the preceding paragraph, is to determine the amount of the special payment insurance premiums and notify the eligible employer of it by designating a due date, as specified by Order of the Ministry of Health, Labour and Welfare.

The eligible employer, if it has made the statement pursuant to the provisions of paragraph (3), must pay the special payment insurance premiums prescribed in that paragraph by the due date referred to in the preceding paragraph, as specified by Order of the Ministry of Health, Labour and Welfare.

In the event that a person fails to pay labor insurance premiums or any other money to be collected pursuant to the provisions of this Act, the government must demand the payment by designating the payment due date.

When the government makes a demand pursuant to the provisions of the preceding paragraph, the government delivers a written demand to the person liable for the payment. In this case, the payment due date to be designated in the written demand must be the day on which 10 days or more have elapsed from the day the written demand is delivered.

In the event that the person who has received the demand pursuant to the provisions of paragraph (1) fails to pay the labor insurance premiums or any other money to be collected pursuant to the provisions of this Act within the designated payment due date, the government imposes a disposition on the person pursuant to the same rules as those for the disposition for national tax delinquency.

When the government demands the payment of the labor insurance premiums pursuant to the provisions of paragraph (1) of the preceding Article, the government collects the arrears calculated by multiplying the amount of the labor insurance premiums by a rate of 14.6% per annum (7.3% per annum for the period until the day on which two months elapse from the day following the payment due date), in accordance with the number of days in the period from the day following the payment due date to the day preceding the day on which the payment is made in full or on which the properties are attached; provided, however, that the arrears are not collected if the amount of the labor insurance premiums is less than one thousand yen.

In the case referred to in the preceding paragraph, if the amount of the labor insurance premiums is partially paid, the amount of the labor insurance premiums to be the basis of calculation of the amount of the arrears pertaining to the period on and after the day on which the partial payment is made, is to be the amount after deducting the amount of the labor insurance premiums paid.

In calculating the arrears, if the amount of the labor insurance premiums set forth in the preceding two paragraphs includes a fraction less than one thousand yen, the fraction is rounded down.

If the amount of the arrears calculated pursuant to the provisions of the preceding three paragraphs includes a fraction less than one hundred yen, the fraction is discarded.

The arrears are not collected in any case falling under any of the following items; provided, however, that in case of item (iv), the provisions of this paragraph only apply to the amount of the portion corresponding to the period during which the disposition is suspended or postponed.

the labor insurance premiums and any other money collected pursuant to the provisions of this Act are paid in full on or before the payment due date designated in the written demand;

the demand is made by the method of service by publication due to the fact that the address or residence of the taxable person is not known;

the amount of arrears is less than one hundred yen;

the execution of the disposition for delinquency of the labor insurance premiums is suspended or stayed; or

it is found that there is a compelling reason for not paying the labor insurance premiums.

The order of statutory lien assigned to the labor insurance premiums and any other money collected pursuant to the provisions of this Act comes after the national tax and local tax.

The collection of labor insurance premiums and any other money to be collected pursuant to the provisions of this Act is to be made by the same rules as those for the collection of national tax, unless otherwise provided for in this Act.

The insured person listed in each of the following items is to bear the amount listed in each item.

the insured person pertaining to the businesses set forth in Article 12, paragraph (1), item (i):one half of the amount obtained by reducing the amount under the following sub-item (b) from the amount under sub-item (a);

the amount of the portion corresponding to the employment insurance rate out of the amount of the general insurance premiums pertaining to the business;

the amount obtained by multiplying the amount corresponding to the amount under sub-item (a) by the two-program rate;

the insured person pertaining to the businesses set forth in Article 12, paragraph (1), item (iii): one half of the amount obtained by reducing the amount under the following sub-item (b) from the amount under sub-item (a):

the amount of the general insurance premiums pertaining to the business

the amount obtained by multiplying the amount corresponding to the amount under sub-item (a) by the two-program rate.

The insured person who is a day laborer, in addition to the amount to be borne by the person pursuant to the provisions of the preceding paragraph, bears one half of the amount of the stamp insurance premiums (if such amount includes a fraction less than one yen, the fraction is rounded down).

The employer bears the amount of the labor insurance premiums pertaining to the business after deducting from the amount, the amount to be borne by the insured person pursuant to the provisions of the preceding two paragraphs.

As specified by Order of the Ministry of Health, Labour and Welfare, the employer may deduct the amount corresponding to the amount to be borne by the insured person pursuant to the provisions of paragraph (1) or (2) of the preceding Article, from the wages paid by the employer to the insured person. In this case, the employer must prepare the calculation sheet concerning the deduction of labor insurance premiums and notify the insured person of the amount deducted.

The master contractor deemed as the business operator pursuant to the provisions of Article 8, paragraph (1) or (2) may entrust the deduction of the amount corresponding to the amount to be borne by the insured person other than the workers employed by them, made pursuant to the provisions of paragraph (1) of the preceding Article, to the subcontractor who employs the insured person.

The provisions of paragraph (1) apply mutatis mutandis to the cases where the subcontractor is entrusted with the deduction pursuant to the provisions of the preceding paragraph.