Having a business partner on the ground is invaluable when you are setting up a company in Indonesia.
Once established, that partner can be critically important when it comes to smooth payroll processing in Indonesia
Like many other aspects of doing business in Indonesia, regulations governing payroll and related taxes and deductions are complex. It is vital to make sure that they are calculated and remitted correctly, and all tax reports are filed.
The first thing that must be taken in to account is Jamsostek, which is the state-owned company that manages the social insurance fund for the private sector. Each company must register with Jamsostek and obtain a Jamsostek certificate and cards for all employees.
Jamsostek has four insurance offerings, the first three of which are part of a mandatory package for all private formal sector employees.
In addition to the package calculations, the system requires employers report to Jamsostek a record of all new and resigned employees.
Proper payroll processing includes setting up a database to calculate all the deductions, preparing payroll slips – whether electronic or paper copy – and calculating take-home pay. Companies must also prepare and file required monthly and annual reports on Jamsostek, employee income taxes, retirement benefits and the annual income tax forms for each employee.
Payroll Services in Indonesia are a Critical Part of Business Set-upEstablishing and running a growing company is a time consuming effort. Focus on growth and profitability and let Cekindo manage the payroll processing. We understand the regulations related to tax and employment in Indonesia and can provide more efficient and cost effective service than establishing an in-house payroll processing system.