Suara.com – The government is designing TER with the aim of making tax calculations easier by changing the method for calculating Article 21 Employee Income Tax, or PPh 21. With the new regulations, companies must have tools to calculate taxes using the latest regulations.
Head of Business Mekari Talenta, Stevens Jethefer, said that every issuance of policies and regulations requires companies to change the way they operate in order to maintain compliance with the applicable regulations.
“For companies, compliance with policies is very essential for their survival in the Indonesian market. Therefore, companies must be responsive in taking adaptive steps as early as possible so that compliance and business operations run without obstacles once the new policies are implemented. Additionally, companies must be careful in implementing “new policy because changes in one part of the business will have an impact on various other operational aspects,” said Stevens, quoted on Saturday (30/12/2023).
He continued, wa changes in tax calculations with TER will affect payroll calculations, which will then have an impact on the company’s operational costs.
“However, companies don’t need to worry about compliance because they can use technology, namely agile cloud-based HR (human resources) solutions, where system updates are carried out automatically as soon as there is a change in market policy,” he explained.
He then explains four ways how cloud-based HR solutions help companies quickly adapt to TER.
Automatic update of tax & salary calculations
The advantage of HR solutions provided by local SaaS providers is on the compliance side. As fellow Indonesian companies, local SaaS providers can immediately pay attention to and respond to policy changes, so they can be more responsive in updating the systems behind the solutions.
“HR solutions can update the payroll calculation system automatically at any time, so that companies are free from the hassle of doing it manually which is prone to errors. For this, local HR solution providers show their superiority because as companies that are also based in Indonesia, they have a better understanding of policies “well, so we can update the system in parallel with changes in government regulations,” explained Stevens.
Employee data synchronization
One of the complications that companies often face when new policies are issued is the compatibility of employee personnel data with tax deductions. When the TER is applied, the company must match several data again, for example the suitability of the status of Non-Taxable Income (PTKP) with the guidelines in the TER.
“The HR solution automates data calculations and recapitulation, where the company’s HR just has to select the employment status, PTKP, and taxpayer status of each employee so that the system can automatically calculate taxes according to the TER method. Accuracy in calculating taxes is good not only for the company’s bookkeeping, but also for employees as a taxpayer,” added Stevens.
Integration of HR and financial systems
Because payroll will impact the company’s bookkeeping, changes that occur in the HR department must be synchronized with bookkeeping in the finance department.
“Changes in tax calculations will have a significant impact on companies because payroll is one of the core operational cost components. HR solutions ensure that the company’s bookkeeping is also updated by integrating the HR system with the financial system. In this way, companies can record operational cost movements in real-time every there are changes to taxes and salaries,” explained Stevens
Wide outreach to employees
Every new regulation must be widely socialized to employees so that they support the implementation of the new regulation. One way to socialize is by sending notifications via employee cellphones.
“The HR solution makes it easier to blast messages or notifications, including personal data and tax forms, to all employees. The existence of a cellphone application that is connected to the HR solution makes it easier for employees to read notifications anytime and anywhere,” concluded Stevens.