Payroll Outsourcing Services
What is it?
Payroll outsourcing services are designed to simplify and reduce your workload by managing monthly salaries, tax-related payments, and statutory contributions for your employees. Many companies, particularly those without dedicated payroll teams, rely on external agencies to handle their payroll processing efficiently.
In Indonesia, businesses must comply with various regulations, including the Manpower Act (Law No. 13 of 2003), the Income Tax Law (UU Pajak Penghasilan), BPJS (Badan Penyelenggara Jaminan Sosial) requirements, and regional labour regulations. These laws require companies to accurately calculate, report, and submit contributions and taxes in compliance with statutory deadlines.
Before hiring employees, companies need to ensure adherence to regulations regarding BPJS Kesehatan (Health Insurance), BPJS Ketenagakerjaan (Employment Social Security), income tax (PPh 21), and other mandatory contributions based on Indonesian labour laws.
Payroll Outsourcing Services can be defined as the services rendered to calculate and deliver employees' net payments while ensuring compliance with all statutory laws and deductions, including overtime, taxes, and other obligations required by Indonesian regulations. These include mandatory contributions such as BPJS Kesehatan, BPJS Ketenagakerjaan, and income tax (PPh 21), as well as compliance with labour laws outlined in the Manpower Act.
How does it work?
Businesses provide external agencies with essential employee details such as salaries, allowances, and deductions. These agencies then calculate payroll while ensuring compliance with Indonesian labour and tax laws, including the Manpower Act, BPJS contributions, and income tax (PPh 21). The computed payroll data is then submitted to the company along with detailed reports for further processing or reference.
WE HELP YOU WITH
- Payroll calculation.
- Payslip send by email monthly.
- Submission of monthly BPJS Kesehatan and BPJS Ketenagakerjaan contributions.
- Withholding and remitting income tax (PPh 21) under Indonesian tax regulations.
- Adding or removing employees in the BPJS systems.
- Annual income tax preparation and reporting.
Reasons for needing Payroll Outsourcing Services
Miscalculation of payroll can lead to serious financial and legal issues for the employing company. For some employees, their salaries might be the only source of income they have so having it delayed or underpaid will greatly affect them. As an employer, even though you ensure that you pay your employees accurately and on time, failure to adhere to or follow certain laws like the labour law will end up causing legal issues.
Reduce Work Load
Payroll Outsourcing Services can be a big help in reducing the stress your business has to incur from processing the payroll on its own, allowing you to reduce your administrative team, or having them focus better on other tasks
Save Money
No accounting team means fewer salaries to pay, working with us gets you the time and competencies of a full-fledged accounting team for only a fraction of the cost
Avoid Mistakes
Calculation mistakes can have a big impact on your business or yourself, such as fines and imprisonments, or tax refund issues and work permit cancellations.
Contact Us
Share with us your requirements and needs, we will get back to you with a personal and confidential quotation.
