Payroll Tax Configuration for Indonesian Employees

This new feature will allow the Admin to select which method the staff should follow for the Tax Configuration. The selected method should be shown with an accurate tax in the generated pay slip. Only the Admin can select the methods for staff.

At a time, only one method can be selected for each and every staff member and the methods are:

- Gross Method
- Net Method

This will apply only to those employees whose Nationality in the profile has been set to Indonesia. Below is the user guide for your reference:

Edit Employee Information

Before any calculations, kindly calculate all types of allowances and deductions first.

Step 1

On the dashboard, go to Settings and click the Company tab.

Step 2

Go to the Legal Entity and enter the name of the entity. Select the Indonesia as the country.
Select whether the tax is based on Net or Gross.

Note: If the Gross method is being used then the tax will be paid by the Staff. If the Net method is being used, then the Tax will be paid by the Company.

Step 3

Click Save.

Step 4

Go to the Staff List and click the employee profile.

Step 5

Go to the Identification tab and scroll down to Nationality. Select the Indonesian from the dropdown menu.

Step 6

Notice that when Indonesian Nationality is selected, the following fields are activated.

NPWP number :Tax Identification Number (TIN) is known in Indonesia as Nomor Pokok Wajib Pajak (NPWP). It is a set of number given to taxpayer (both individual and entity) for personal identification in carrying out their taxation rights and obligations (i.e. Income Tax, and VAT).
PTKP Status: A dropdown to select the PTKP status for each employee, and the options are(0 – Dependents/Child):
BPJS number:The BPJS is a kind of Health care insurance in Indonesia. Every citizen of Indonesia should have this national insurance.