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The TEACHER will receive a 5% rate increase for every 5 lessons they teach, starting at 60% of that student’s lesson fee. After your student's 20th lesson, you'll continually earn 80% of their lesson fee.
Once you mark attendance for the student's 20th lesson, you'll never earn less than 80% of the lesson fee for that student.

first 5 lessons  60%
6-10 lessons 65%
11-15 lessons 70%
16-20 lessons 75%
20+ lessons 80%

Profit Sharing Plan

What kind of Plan is this?

 

[education profit sharing ] ("Plan") has been adopted to provide you with additional monthly income in teaching languages ( part-time ) . Generally you are not taxed on the amounts we contribute to the Plan on your behalf until you withdraw these amounts from the Plan.

How do I participate in the Plan?

 

You may begin participating under the Plan once you have satisfied the eligibility requirements and reached your "Entry Date." The following describes the eligibility requirements and Entry Dates that apply. You should contact the Administrator if you have questions about the timing of your Plan participation.

Profit Sharing Contributions

 

Excluded Employees( teachers ). If you are a member of a class of employees identified below, you are an Excluded Employee and you are not entitled to participate in the Plan for purposes of profit sharing contributions. The Excluded Employees ( teachers ) are:

 

 - union employees whose employment is governed by a collective bargaining agreement under which retirement benefits were the subject of good faith bargaining

 

-  certain nonresident aliens ( without working visa or not permitted to work  )  who have no earned income from sources within Japan

-  without a valid Japanese bank account ( under your name )

 

 

Eligibility Conditions. You will be eligible to participate for purposes of profit sharing contributions when you have satisfied the following eligibility condition(s). However, you will actually enter the Plan once you reach the Entry Date as described below.


-  attainment of age 21.


-  completion of min 10 lessons monthly

-  Valid working visa or permitted to work part time in Japan 

 

Entry Date. For purposes of profit sharing contributions, your Entry Date will be the completion of min 10 lessons within a month. Teachers can teach more than 10 lessons ( exp 20, 30 lessons etc ) 

What is the Employer profit sharing contribution and how is it allocated?

 

Profit sharing contribution. Each month, Employer may make a discretionary profit sharing contribution to the Plan. Your share of any contribution is determined below.



Your share of the contribution. The profit sharing contribution will be "allocated" or divided among participants eligible to share in the contribution for the Plan Month. Contributions to a profit-sharing plan are made by the company.

Your share of the profit sharing contribution will be determined by dividing the contribution equally among all participants eligible to share. The Administrator will inform you as to how much will be allocated to your account.

For example,

suppose the profit sharing contribution for the Plan Month is ¥50,000. If there are 3 participants eligible to share in the contribution,

calculation based on ¥2,500 per lesson.

1-  Mike earns  ¥ 25,000 ( 10 lessons )

2-  Tom earns ¥ 50,000 ( 20 lessons )

3-  Alice earns ¥75,000 ( 30 lessons )

the total of their salaries is ¥150,000.

Mike profit sharing total would be calculated by (¥50,000 ) x (¥ 25,000 / ¥150,000 ) = ¥8,300

Tom profit sharing total would be calculated by (¥50,000 ) x (¥ 50,000 / ¥150,000 ) = ¥16,700

Alice profit sharing total would be calculated by (¥50,000 ) x (¥ 75,000 / ¥150,000 ) = ¥25,000


*A profit-sharing plan gives employees a share in their company's profits based on its 2 months earnings. Payout on a 2 months basis.

For example.

January profit sharing will be available on 28th March
once a teacher reach the Entry Date ( min 10 lesson per month )

February profit sharing will be available on 28th April
once a teacher reach the Entry Date ( min 10 lesson per month )

if less than 10 lessons per month. Employee is not eligible during that particular month but will receive their usual hour of service (total  lessons )

For example

8 lessons ( Hour of service ) - ¥2500 x 8 = ¥20,000 ,  company profit sharing plan is not eligible because less than 10 lessons per month.

it is possible for teachers  to receive both their usual hour of service and profit sharing incentives. 

For example

10 lessons ¥2500 x 10 = ¥25,000  +  profit sharing = ¥ (        )


*Distributions from a profit-sharing plan are taxable income and must be reported on an individual's tax return.

How is my service determined for allocation purposes?

 

Month of Service. You will have completed 2 Months of Service for a Plan Month and must completed at least 10 lessons of Service during the 1st or 2nd Month.  -
*min 10 lessons cannot be combined ., for example - Either 1st month 10 lessons or 2nd month 10 lessons, can be accepted.


Hour of Service. You will be credited with your actual Hours of Service for:

each hour for which you are directly compensated by the Employer for the performance of duties during the Plan Month;

Gainsharing Plan and how are they allocated?

 

Definition of Gainsharing. In order to reward employees who remain employed as Part time teachers with the company for a longer period of time, ( min 6 months )

a) Total lessons  ( 6 months ) * based on one hour lesson. 

i) between 50-70 lessons                  5% of an employee 6 months total salary.

ii) between 70-90 lessons                 7%

iii ) between 90-110 lessons             9%

iv ) 110 lessons and above                11%

it is possible for a teacher to receive both profit sharing and gain sharing incentives.

* less than 50 lessons  - not eligible .


How will payments be made?

Direct Bank Transfer to Japanese bank account.  Account holder must be under the employee ( teacher ) full name
* cannot be transferred to an Offshore bank account.
 

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