On 13 May, AYP Group and JuzTalent held their 4th ASEAN payroll webinar series called “Payroll Journey – The Indonesia’s Style”.
This was a 45 minutes webinar, a sharing session to almost 70 attendees who are either payrollers, HR personnel or attendees who would like to learn
1. Indonesia’s Payroll rules and regulations (Overtime calculation, Tax calculation, statutory contributions and etc.)
2. 5-step payroll cycle
3. Payroll Process Chart
4. How to process payroll within 10 minutes using JuzTalent
During the Indonesia’s ePayroll webinar, there was overwhelming of questions asked from the ground. As such, we have picked up Top 7 questions and written down the answers which you can also take it as a reference point:
1. What are the taxable components?
>> Allowance taxable, deduction taxable, BPJS Kesehatan Company: JKK, JKM, Gross Monthly, Gross Yearly, Cost Position, JHT Yearly, JP Yearly, Netto Yearly, PTKP, PKP, PPH Yearly, PPH Monthly.
2. What is the required contribution (deduction) for Indonesia payroll?
>> The required contribution are BPJS TK (Manpower), BPJS KS (Health Insurance), and Tax
3. What taxes must be paid by foreign companies in Indonesia?
>> Some of the primary taxes to be paid by a foreign company operating in Indonesia are individual income tax for employees in Indonesia, capital gains tax, withholding tax, payroll tax, business tax, etc
4. Who is the one pay the employee’s tax and submit to the government?
>> The employee still need to contribute to the tax based on their salary. Employee need to submit their yearly tax report, however employer is the one who pay to the government by deduct the employee salary.
5. How to determine the risk level?
>> The risk level will be based on the line business of the company. For example, manufacture company will be get higher risk level than consultant company.
6. How do we calculate gross monthly in Indonesia?
>> The details: Gross Monthly = Salary + Allowance Tax – Deduction Tax + BPJS K comp + JKK + JKM
7. How is the tax payment process in Indonesia?
>> For processing tax payment, a billing code must first be generated. It will be valid for 20 days and need to be given to the bank so the bank can process the tax payment.
Our Indonesia’s payroll powerpoint is also available for download >> AYP x JuzTalent – Payroll Journey – The Indonesia Style
or visit our JuzTalent YouTube Channel to rewatch Indonesia’s payroll webinar >> https://www.youtube.com/watch?v=Za9XPD2szEw&t=23s
If you have further questions pertaining to Indonesia’s payroll, tax, employment contract or how JuzTalent can assist, feel free to email us at either firstname.lastname@example.org or email@example.com. We are here to help and we hope we can value-add you and your company in some ways.