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Payroll outsourcing service in Indonesia.

Let us take care of the payroll system for your Indonesian company. Acclime’s experienced team will efficiently help run your business’s payroll process, comply with rules and regulations, and save your time from managing the payroll system.

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Payroll outsourcing service in Indonesia

Leave your payroll to
our in-country experts.

Make your payroll painless with the help of engaging with our professional payroll outsourcing services. Our online-managed payroll services include:

Integrated tax compliance

Besides calculating and processing payroll, we can also confidently file compliance reports on your behalf.

Robust reporting

Detailed reporting enabling you to stay on top of your HR management and expenses.

Employee self-service portal OPTIONAL

Let your employees view their personal information. Through the ESS portal, they will be able to access e-payslips, e-leave, e-claims and e-attendance.

Payroll services

Flexible and scalable payroll solutions.

Our services cover every step of the payroll process and can be customised to match your company’s needs cost-effectively. Our services include:

  • Payroll

    A. Initial payroll setup

    We will import your employee data and set up the payroll system to your specific needs, regardless of what compensation and benefit policy your company has (net or gross, taxable or non-taxable income, recurring or non-recurring payments).

    What is included?

    One-off

    B. Monthly payroll services*

    Each month, we will alert you to confirm essential employee details, such as salary, leaves and more. We will then handle all your payroll calculations, statutory contributions, filings, salary payments and other paperwork for you. You only need to review and approve. Detailed reports, including payslips and other documents, will be available to you online on the client-service platform.

    What is included?

    Monthly

    C. Helpdesk

    We will provide virtual help desk support to answer employee queries about their payroll. These are channelled through the authorised person in your company.

    Monthly

    D. Additional monthly third-party interface services (optional)
    Cash management services

    We will manage the disbursements of the following on your behalf as each become due:

    • Employee salaries
    • Employee income tax
    • BPJS contributions
    • Pension payments
    • Others, as required

    As an alternative means of payment distribution, Acclime can be granted with the maker/checker role of client’s web-banking payment process itself, whereby the client’s authorised person will ultimately approve/release the payment.

    Statutory compliance services

    Acclime will liaise and perform filings to statutory bodies, namely:

    Monthly

    E. Year-end services

    We will prepare and submit all the necessary year-end returns, filings and tax forms for each employee.

    What is included?

    Anually

  • Client self-service portal

    Managing the payroll is easy and efficient with our cloud-based client self-service portal. With interfaces for employees (employee self-service) and management (management self-service), both parties have access to relevant information pertaining to them and can seamlessly manage:

    • Employee data
    • Employee attendance
    • Requesting and managing leave
    • Claiming expenses and more

    Monthly

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Intial payroll setup.

  • Initial assessment of the complexity of your system and other special needs and wants
  • Development of payroll outsourcing blueprint and business continuity plan
  • System customisation to meet your unique requirements
  • Data migrating and YTD processing
  • Identify and analyse potential issues (if any), and propose correction

Monthly payroll services.

Data capture

  • Collection of payroll income and deduction data, timesheets & attendance and monthly payment invoices which are subject to withholding tax (via secured electronic mail, SFTP or other approved means)

Payroll processing

  • Calculation of monthly gross income and deductions
  • Calculation of employee income tax
  • Calculation of BPJS contributions (Ketenaga Kerjaan & Kesehatan)
  • Calculation of attendance and overtime
  • Processing reimbursement and medical claim
  • Maintain medical claim limit
  • Maintain leave balance to be informed in payslip
  • Maintain private pension fund balance to be informed in payslip

Reporting

  • Salary details and summary report by cost centre
  • Headcount and THP comparison by cost centre
  • Salary report to finance (journal report)
  • Bank transfer report
  • Payroll slip to employees (hard copy, secured email payslip or both) – provide formatted payslip to upload to a company portal and/or through Employee Self Service
  • Tax reports
  • BPJS reports
  • Private Pension Plan reports
  • Medical claim balance and other reports as required

Year-end services.

  • Annual employee income tax return & report (SPT 1721) – Preparation and filing of the annual employee income tax return documents
  • Process and record annual leave, commissions & bonuses to staff

*Our monthly regular processing fees follow a tiered structure, where the average costs per employee will decrease as the total number of employees increases. The total monthly processing fees will be the sum of the costs for each tier. Your actual monthly fees will then vary based on the fluctuations in your headcount.

An irregular processing fee will be applied as required for any employee payment processing, which does not coincide with monthly regular payroll processing (off-cycle processing), e.g. religious festivities bonus, performance bonus pay-outs, incentives and more.

Payroll implementation process

Simple steps to implement your payroll.

1. Initial assessment

First, we will evaluate your company’s payroll needs, choose the suitable services and prepare the initiation of the selected services. We will also identify areas we can improve to enhance the overall payroll process.

2. Service blueprint

After choosing our services, we will make a payroll blueprint document which outlines everything about the payroll administration (including calculation details, initial data migration, ongoing processing, payroll calendar and reporting requirements and employee services). This blueprint will act as reference for both parties.

3. Testing phase

We customise the payroll system to satisfy your demands, launch the system, transfer the employee data and combine the transaction data while we organise a test environment.

4. Parallel run & evaluation

Our next step is to analyse the outcomes with past payroll calculations which we will then evaluate the calculation differences and shift to our payroll system for the agreed amount of time.

5. Production

Your payroll system is prepared and ready for kick-off.

Ongoing customer support from people who care about your team.

Count on us whenever you need payroll and tax support. We will always send you notices of any regulation changes that involve your company or staff even if your company is functioning well.

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Acclime benefits

Why outsource your payroll to Acclime?

Reduced operating costs

Save costs with access to reasonable priced payroll technology and infrastructures. No need to worry about any hidden charges as our payments are transparent and honest. We can additionally decrease your expenses by combining it with other services, such as accounting, HR and taxation.

Complete payroll solution

We provide you with complete payroll services to pay your employees the exact amount and on the dot, including calculation of payroll and benefits of income tax, robust reporting and statutory compliance filings. All services are customised to suit the size of your business, company policies and your other needs.

Effective communication & reporting

Make your work easier and be up to date of your payroll process with our effective payroll services, consistent reporting and communicate through a single point of contact.
FAQ

Common questions.

When is outsourcing payroll a good idea for companies?

The payroll function is a non-core function in that it is not a profit. A non-core function may be essential but does not differentiate your business strategically from competitors. Albeit a non-core function, if run correctly, the payroll function plays an important role in maintaining a high level of employee satisfaction and ensuring the company is compliant with the wide range of   labour laws, tax laws for employee income withholding taxes, social security, minimum wage, compensation, etc. Outsourcing payroll is a good idea if:

  • A company wants to free up time and resources from repetitive and administrative tasks and reallocate the resources to be focused on strategic matters relating to the core business.
  • A company wants to gain access to more technology and technical expert in the field expertise and experience to perform payroll in a fully compliant way.
  • A company wants to reduce hidden costs and risks associated with non-compliance that can result from amongst others failure to adopt new/changes in regulations which often have very short lead times.
Can my company do the payroll by itself?
Yes, usually a company has one person (payroll staff) performing all the payroll processing functions. But it there is a risk when the person cannot perform the job when they are on sick leave or leaves the company. In most cases, the business rules pertaining to payroll such as policies and standards, are not well documented, but rather is in the form of knowledge of the payroll staff , whereas knowledge transfer upon departure of the payroll staff cannot be guaranteed 100%.
What are the mandatory deductions for Indonesian payroll?

1. Employee Income Tax
Individuals who are resident are taxed on their worldwide income at the following national rates:

Taxable Income Tier

Tax Rate

Up to IDR 50 million

5%

Over IDR 50 million to IDR 250 million

15%

Over IDR 250 million to IDR 500 million

25%

Over IDR 500 million

30%

2. Social Security /BPJS

Indonesian social security agency is now known as the Social Security Organizing Agency (Badan Penyelenggara Jaminan Sosial, BPJS), divided into 2 administration:

  • Health care social security program (organised by BPJS-Kesehatan) and
  • Social Security for Employment programs (organised by BPJS-Ketenagakerjaan).

BPJS Contribution Details

The BPJS contributions are calculated as follows:

Coverage

As a percentage of regular salaries / wages

Borne by Employer (%)

Borne by Employee (%)

Working Accident Protection (1)

0.24 to 1.74

–

Death Insurance (1)

0.3

–

Old Age Savings (1)

3.7

2

Healthcare (2)

4

1

Pension (3)

2

1

Notes:

  • Calculation base is basic salary plus fixed allowance. No cap or maximum contribution amount (1).
  • Maximum calculation base is IDR 12 million/month starting January 1st ,2020 (2).
  • Maximum calculation base is updated annually based on BPJS regulation (3). Starting March 2020 maximum base is IDR.8.939.700/month.
  • Working accident protection – contribution between 0.24% to 1.74% (depend on work risk)
  • Employers must register their employees (1,2,3) and dependent family members (2).
  • Employees’ contributions are collected by the employer through payroll deductions. These must be paid to BPJS together with the contributions borne by the employers.
  • When the assignee (expatriate) leaves Indonesia at the end of their assignment they may be eligible to withdraw the old age saving component (i.e. the total contribution of 3.7% and 2% plus any contribution growth).
What payroll software do you use?

Axia Payroll

Who will submit/pay employee salary tax?

Axia Payroll

Ready to get started?

Manage your team’s payroll with a complete payroll solution tailored to your specific requirements.

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Non-binding & confidential
Not sure where to begin?

Schedule a free 30-minute discovery call to discuss starting & operating your company in Indonesia.

Puji Gulo, Business development executive

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