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Tax & Accounting

Payroll Management

The payroll function is an essential aspect of HR operations, affecting each employee. Meeting local regulations and statutory compliance is as crucial as ensuring employees receive their salaries on time and accurately.

LMI Consultancy offers a sophisticated local payroll service; benefit from their streamlined processes and reduce administrative burdens. Get direct access to local teams of experts who will help calculate your gross wages, carefully deduct all withholdings and deductions, provide easy-to-read payslips, and handle all your employment tax filings accurately.

Outsourced Payroll Management

In-House Payroll Management

Manual Payroll vs Automatic Payroll: What’s Best for Your Business?

While automated payroll software simplifies salary calculations and tax withholdings, its complexity might not suit every business’s unique needs. Expert oversight and personalised support are the hallmarks of manual services, which are especially crucial for:

Document Requirements

Streamline Payroll Management in Indonesia with LMI Consultancy

Other Popular Company Setup Services in Indonesia

Setup a Business in Indonesia with LMI Consultancy

Established in 2016, LMI Consultancy has been supporting countless individuals in understanding the intricacies of visas, business setup, tax & accounting, and property investment in Indonesia, providing a comprehensive and dependable service. 

We take pride in being an ethical and innovative company that places a strong emphasis on exceptional customer service and strives to set a new standard in our industry, guaranteeing a smooth and encouraging experience for our clients.

FAQ

What reasons might a business prefer manual payroll and tax processes to automated payroll?

The flexibility and personal attention offered by manual payroll services may appeal more to smaller businesses or those with non-standard payroll setups than automated software. Implementing a payroll management system may present initial cost and complexity challenges.

According to Indonesian employment regulations, workers are given a bonus equivalent to one month’s salary each year. The salary benefit amounts to one month’s pay, plus any standard monthly stipends. Employees receive this benefit before their main religious holiday, identified during onboarding.

Monthly and annual tax payments and reporting are required of the company. The monthly taxes consist of the following:

  • Corporate income tax under article 25 (PPh 25) needs to be settled by the 15th of the subsequent month at the latest submitted to the tax office on the 20th of the following month at the latest.
  • Article 21 (PPh 21) Employee Withholding Tax is due by the 10th of the next month and must be filed with the tax office by the 20th.

In contrast, the yearly taxes amount to:

  • Corporate income tax is due by the end of April, the fourth month after the fiscal year.
  • Individual income tax must be paid by the end of March, three months after the close of the fiscal year.

Disclaimer : Our services in LMI Consultancy provide consulting services focused on ensuring client compliance with applicable immigration and legal regulations in Indonesia. We do not provide or facilitate the production of official government documents, nor do we offer any expedited or preferential access to government services.

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Transform your ambitions into achievements. Contact LMI Consultancy today and take the first step towards your business or life expansion across Asia!

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Connect with our consultants for expert advice.

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