Home Blog Payroll Indonesia: Things to Consider when Choosing a Payroll Outsourcing Provider Human Resource | Payroll Payroll Indonesia: Things to Consider when Choosing a Payroll Outsourcing Provider InCorp Editorial Team 2 July 2019 4 minutes reading time Table of Contents Is the technology of the payroll provider keeping up with the current trends and needs? What should I expect from the customer service of my payroll provider in Indonesia? Will this payroll provider ensure the safety of my employees and business’ data? What can my outsourcing provider do other than payroll? Will the outsourcing provider be responsible for any inaccurate tax fillings? Cekindo as Your Payroll Outsourcing Provider in Indonesia Have you ever thought of outsourcing your payroll in Indonesia to a professional payroll provider but feel hesitant to do so? Let’s face it and be honest to yourself: one of the most daunting and critical issues when running a business is payroll. When payroll is not done correctly, such as data errors or missing payroll periods, it can cost your business a significant amount of time and money, no matter how big or how small your business is. However, your company’s payroll does not have to be that chaotic. The key to a successful payroll is a streamlined process offered by a payroll outsourcing provider. Not only does payroll outsourcing meet the unique requirements of your company, but it also makes sure that your company’s payroll complies with the tax and labour regulations in Indonesia. So, are you ready to choose a payroll outsourcing provider in Indonesia to save you from the headache of handling the overwhelming payroll process? This article elaborates the important things you need to consider when choosing a payroll provider in Indonesia. Is the technology of the payroll provider keeping up with the current trends and needs? Your company needs a payroll provider that is always on top of the current technology trend because of the always-changing technology. Giving wages or salaries to employees involve several options such as direct deposit, physical checks, cash, or online bank transfer. Therefore, you need to know the best option for your employees to get money and decide which payment technology is best suited for your operations. A user-friendly software is also vital when considering a payroll provider. A cloud-based software can help to keep track of all payroll-relevant information and updates easier. All requests can be done instantly as long as there is an Internet connection. Related article: Payroll Processing and Outsourcing in Indonesia: How It Works What should I expect from the customer service of my payroll provider in Indonesia? Since your business runs at least five days a week, you should also expect that your payroll provider will attend to your requests and issues at all those working hours as well because you never know what and when issues will arise. Thus, always seek a payroll provider that offers Single-Point-of-Contact (SPC) support. SPC streamlines customer support and service and it can save you the hassle and time. Related article: Cost Benefits of Payroll Outsourcing in Indonesia Will this payroll provider ensure the safety of my employees and business’ data? We all know that sharing sensitive data with an external third-party can be intimidating. This may be one of the reasons most companies are hesitant to engage a payroll provider. To prevent crashes and breaches of your company confidential data from happening, you need to look into how secure your data are stored by your payroll provider. It is imperative for your payroll provider to have a disaster recovery system as well. What can my outsourcing provider do other than payroll? Oftentimes, a payroll provider will also offer HR functions in their services. To make the most out of your money to boost company’s efficiency and productivity, you may also enquire your provider if they offer other effective business solutions. These business solutions may be the handling of employee benefits and insurance, payment processing, and loan management. A provider with all these offerings will make your life as a business owner much easier. Will the outsourcing provider be responsible for any inaccurate tax fillings? Mistakes in tax filings have cost businesses a substantial amount of money. While tax fillings errors can come from inaccurate information provided by business owners, they can also be caused by the provider – 100% accuracy is almost impossible. Therefore, you should always opt for a payroll provider who will take the responsibilities and pay for the mistakes made. Cekindo as Your Payroll Outsourcing Provider in Indonesia In Indonesia, Cekindo has a team of professionals who can handle your payroll management. In addition, we also offer HR outsourcing and tax and accounting outsourcing services. Get in touch with us today by filling in the form below. Or, visit our offices in Jakarta, Bali and Semarang. Read Full Bio Verified by Heldy Narua Senior External Finance Manager at InCorp Indonesia Heldy, with seven years of experience, leads InCorp Indonesia's External Finance team, specializing in reliable Payroll Outsourcing and Finance Management solutions. She has an Accounting and Business Administration degree from Sampoerna University and Oregon State University. She is certified with Brevet AB, highlighting her technical expertise and commitment to client success. Frequently Asked Questions What are the obligations related to payroll? Health Insurance and Social Security Insurance (BPJS) are mandatory. The company and the employee will bear a certain percentage, respectively. Another obligation is tax withholding. The percentage and type of taxes vary from case to case. Contact us to get information on your specific field. Is it required to hire Indonesian staff in the PMA company? In Indonesia, the necessity of hiring Indonesian employees by foreign companies typically arises from commercial requirements, regulatory mandates in specific sectors like construction or shipping, or as part of employing foreigners to fulfill knowledge transfer obligations. How does the HR outsourcing mechanism work? As your HR outsourcing provider, InCorp signs a standard employment agreement with an outsourced employee. After this, we take care of the employee’s payroll in coordination with your company. InCorp is also responsible for paying the salary to the employee. What is the Indonesian employment status in PMA company? In Indonesia, employment arrangements are categorized into temporary employment agreements (PKWT) and permanent employment agreements (PKWTT). Temporary contracts are for short-term, seasonal, or experimental work, while permanent contracts are for continuous employment. Get in touch with us. 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