How it Works and the Benefits of Using a Payroll System

Corporate Secretary Service Indonesia – A recruitment & payroll processing is a payroll administration system for companies with employees, so this system is an application that facilitates the routine work of HRD staff every month in terms of calculating the salary that must be paid and calculated based on basic salary, transportation allowance, meal allowance, and overtime pay.

The recruitment & payroll processing must be carried out regularly and accurately every month without errors. For this reason, investing in payroll should not be underestimated, especially if you already have a large-scale company.

How the Payroll System Works

1. Pre-payroll

In this process, the company will usually conduct an inspection, divided into several stages of company policies regarding salary, leave, allowances, and attendance policies. Furthermore, the company will collect the data. This stage generally involves several teams and divisions to obtain information related to attendance data and salary changes.

The next stage in this process is to validate the data, which will later be analyzed to determine whether it is based on existing policies in the company. At this stage, it will ensure that no active employees are missed and inactive employees are included in the payroll payment

2. Payroll

At this stage, validated data will be entered into the payroll system for processing. This process is helpful so that the payment is clean according to the necessary taxes and deductions. If this process is complete, the next stage will check and verify the accuracy of the data to avoid errors.

3. Post-payroll

All matters, such as taxes (Pph), at this stage affect salary deductions. Then, the payroll administration team will send a report to the appropriate government agency. Furthermore, the HR Team and Finance Team will work together to record all transactions for the payroll process. The goal is because salary is one of the most essential parts of operational costs and needs to be recorded in the company’s books.

Advantages of Using Payroll

The advantage of using recruitment & payroll processing is that companies no longer need to worry about errors in calculating and sending salaries. Because by using payroll, this can be completed directly by the system. The following is an explanation of the capabilities provided by payroll:

1. Calculating Deductions and Salary Amounts

The first payroll capability is calculating employee salaries. After the gross salary amount has been determined, the system automatically calculates deductions for taxes, insurance, and BPJS Health/Employment. These deductions will be entered directly into the gross salary amount before being automatically sent to the employee’s account. Some specific systems can automatically include employee reimbursement costs, medical treatment that does not use BPJS services, and other employee expenses.

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2. Creating Tax Forms

The recruitment & payroll processing can create tax forms needed by the company and employees. The tax forms can then be printed or sent to the relevant parties. If previously, the process could waste costs and could take up a lot of time. Therefore, when the company uses a payment system, it uses payroll. The costs incurred become more economical and efficient. The HR division can also focus on other tasks, namely increasing human resource assets.

3. Storing Data Automatically and Safely

Storing data manually will take a lot of time, is challenging, and requires a lot of paper and storage space. Since payroll is software run using a system, companies no longer need to prepare some of these things. Old data can also be quickly deleted if it is no longer needed. Then, this payroll system can quickly resolve whatever challenges the company faces in fulfilling its obligations in terms of employee compensation.

4. Can be adjusted to the needs of the company

Not all companies have the exact needs, and companies can adjust them to their chosen payroll system. Companies can convey their needs to their respective vendors. For example, small companies only need a few features compared to large companies, considering the number of employees and needs that are not too large. On the other hand, large companies that want to invest in this system can integrate it with different aspects of planning and resource management, such as managing absences, scheduling, licensing, and others.

5. Self-Service

Using payroll allows employees to directly access information regarding salary, deductions, working hours, bonuses, and other factors. This feature also allows employees who want to submit something automatically without first writing a letter of application to HRD. Almost all payrolls are cloud-based so they can be accessed anytime and anywhere with a device connected to the internet. This system will also be updated automatically when there is a change in tax policy. So that employee salaries can always be adjusted to government regulations.

6. Making Reports According to Needs

The high frequency of transactions related to payroll certainly requires reports that are easy to read for the analysis process. Together with the Accounting party, the company can create detailed payroll transaction reports according to the company’s needs if the company is still confused about how to calculate employee salaries.

Don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business, also when you need recruitment & payroll processing. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!