Payroll Outsourcing Indonesia - Cekindo

Payroll Outsourcing: Why It is A Must Do when Running A Business in Indonesia

  • InCorp Editorial Team
  • 10 June 2019
  • 4 minute reading time

Unless you do payroll outsourcing in Indonesia, payroll is one of the most legally intensive and time-consuming human resource functions that any organization has to deal with on a daily basis. You are not only legally obliged to make sure your employees receive their paychecks on time, you will also need to have a very dedicated and qualified HR to put in all the time and effort every day.

Millions of businesses all over the world have outsourced their payroll. Business people have come to realise that such administrative work is a big drain of their time, as the work is only getting more and more complicated by the day.

This article elaborates the reasons payroll outsourcing in Indonesia is a must when doing business. You will also know the criteria of choosing a reliable payroll service provider.

Reasons for Payroll Outsourcing in Indonesia

Here are the main reasons business owners choose to outsource their payroll processing:

Cutting Down Costs and Time

First of all, you do not need to hire a team of professional human resource personnels who are specialised in tax law, labour law and accounting. Full-time experts in house can add up your overall expenses massively.

What is more, payroll requires the latest accounting and payroll software. These software are not cheap. So why not pass these savings from software investments to other core functions at your company?

Without a large team of HR and computers with accounting and payroll software that take up a lot of space, you will not need a big office either. With that, you can eventually save on your rent as well, which means significant savings for the long run.

Allowing You to Focus on Core Business

As a business owner, you should always let the experts do what they do best. So, your company can then do what it does best.

By outsourcing payroll processing to a payroll professional, you and your company can finally focus on developing your employees, marketing for sales, and more, to take your business to another successful level.

Payroll is a critical function but definitely not a glamourous one. So, right now, save your energy and resources for other key business functions. Only by doing so, your business can grow even more.

Complying with Indonesian Laws

With so many labour rules, tax laws, rules and regulations, it has become extremely challenging to calculate employees’ exact salary and compensation. Untimely tax reporting and other non-compliances can lead to hefty fines and other serious sanctions.

Related article: Payroll Processing and Outsourcing in Indonesia: How It Works

Criteria to Choose a Payroll Outsourcing Provider in Indonesia

While payroll outsourcing is definitely something you must consider for your business, you need to be aware that not all payroll outsource providers are created equal and will provide you with the best solution.

Here are the major characteristics a payroll outsource provider must have:

  • Reliable, trustworthy and secure
  • Experienced with impeccable track records in the industry
  • Comprehensive HR and business consultation offering
  • Possessing the ability and capability to provide legal consultation and solutions for all legal matters
  • Technology readiness such as accounting software, advanced computers and devices

Related article: Cost Benefits of Payroll Outsourcing in Indonesia

Cekindo as Your Payroll Outsourcing Provider in Indonesia

A good payroll provider offers capabilities that deliver peace of mind for you and your business.

Cekindo has a team of experienced payroll specialists that are at your service. Through our tailor-made solutions, you will be able to reduce your administrative burdens. Our payroll outsourcing services include monthly payroll calculation, monthly tax calculation and social security payment.

Get in touch with us today by filling in the form below or visit our offices in Jakarta, Bali and Semarang.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Frequent Asked Questions

Health Insurance and Social Security Insurance (BPJS) are mandatory. The company and the employee, respectively, will bear a certain percentage. Another obligation is tax withholding. The percentage and type of taxes vary from case to case.

There are many benefits of payroll outsourcing in Indonesia. However, some of the most noteworthy ones include cost reduction (no need to build an internal team), compliance (Indonesia is well-known for its constantly changing payroll regulations), and core business focus (payroll is a non-revenue-generating task).