HR & Payroll Service
One of the key aspects of employee satisfaction within an organization is the completeness, accuracy and timeliness of the payroll calculation and payments which comply with pertinent local government regulations as well as the compensation and benefits policies applied by the company. At Magna Praxis, we provide an end-to-end Payroll Service that efficiently processes your organization’s payroll to meet those key criteria.
- Ensure high-quality payroll calculation and reporting in compliance with the latest legislative requirements
- Mitigate tax and labour-law risks
- Ensure the confidentiality and security of payroll information
Whatever the compensation and benefit policy that your company has, whether it is compensation in net or gross, taxable or non-taxable income, recurring or non-recurring payments, our team of experts will provide complete, accurate and timely reports. We will also proactively alert you of regulatory changes that may affect your business and your employees.
Our Implementation approach:
- Initial Assessment: The implementation process begins with an assessment of your environment to determine the volume, complexity and other specific requirements.
- Service Blueprinting: Once we have agreed to proceed with the services, a payroll blueprint document which defines all aspects of the payroll administration will be produced and will serve as a common reference for both parties. In this process, we would also take the opportunity to find areas of impartments for a more efficient process overall.
- Establish Test Environment: Next, a test environment will be set up and customized to meet your requirements as documented in the service blueprint in the previous stage.
- Parallel Run & Evaluation: In this stage, we will reprocess the payroll from January until one month prior to the go-live date. This is to bring the tax calculation to the year-to-date status and identify discrepancies in tax calculations (if any). After due checks and resolution of any discrepancies, the payroll processing will cut over to production by our team.
Our Service Delivery:
- Pre Payroll Process
- Updating of employee master data changes (joiners and leavers, promotion, relocations, etc.), payroll Income and Deduction data, timesheets / attendance and monthly payment invoices which are subject to withholding tax.
- The data transmission be by secured electronic mail, SFTP or other approved secure means.
- Payroll Process
- Calculation of Income and Deductions.
- Calculation of Employee Income Tax due.
- Calculation of Social Security contributions, both manpower (BPJS Ketenagakerjaan) and Healthcare (BPJS) Kesehatan.
- Post Payroll Process
- Salary Details and Summary report by cost centre
- Salary report to Finance (Journal report)
- Bank transfer report
- Payroll Slip, Client may choose either of the following format of payroll slips:
- Hard copy
- Secured email Payslip
- Mixed Hard copy and secured email
- Format which conforms to the existing Employee Self Service system
- Social Security BPJS Ketenagakerjaan reports from BPJS Online Reporting System (Sistem Informasi Pelaporan Peserta - SIPP Online)
- Income Tax Report
- Income tax payment slip (Bukti Penerimaan Negara);
- Income tax e-filing slip (Bukti Penerimaan Electronik);
- CSV file download from ESPT for client tax filing – if required
- Monthly Employee Income Tax Return (“Surat Pemberitahuan Masa PPh Pasal 21/26”) ;
- Withholding tax slip of income tax Articles 21/26 (“Bukti Potong PPh Pasal 21/26”) – if required ;
- Summary of withholding tax slips of income tax Articles 21/26 (“Daftar Bukti Potong PPh Pasal 21/26”) – if required;
- Finalization of Annual Employee Withholding Income Tax (1721 – A1)
- Other specific reports as defined, agreed and documented in the Service Blueprint
- Third Party Interface Services, complements the core payroll services and consists of:
- Cash Management Services: performing payments of employee salaries, employee income tax, Social Security contributions, pension payments, and others as required and agreed in the scope of services.
- Statutory Compliance / Lodgement Services: performing on-going filings to statutory bodies, namely:
- Tax Authorities
- Manpower Social Security (BPJS Ketenagakerjaan)
- Healthcare Social Security (BPJS Kesehatan)
Our HR administrative services provides a wide range of standard HR administrative services such as mentioned below, and also services specifically catered to your needs.
Company Regulation Drafting and Registration:
- Drafting and reviewing (bilingual) company regulation
- Processing the registration of company regulation at the Ministry of Manpower
- Drafting and reviewing (bilingual) mutual agreement
- Provide salary simulations
- Social Security (BPJS) registration
- Providing simulation of severance calculation
- Drafting and reviewing (bilingual) mutual agreement
- Attending Bipartite Meeting
- Processing the registration of mutual agreement at the Ministry of Manpower
Employee hosting under a fixed term contract
- Temporary hosting employee on behalf of client on fixed term contract
Why is a HR Compliance Healthcheck important?If your business’s HR has not been checked for compliance with government regulations periodically and systematically, your business might not be up to date with the current work norms required by law and may very well be not compliant with some of the applicable laws/regulations.
Our scope of service includes:
- Checking company documents and compliance, specifically and limited to the Work Norms and Company Legality aspects.
- Make necessary corrective recommendations/actions to the findings during/after the HR Health Check process.
- The estimated timeline for checking all the required documents is up to 10 working days after receiving all required the documents to be reviewed.
The HR Health Check / review that we perform is aligned with the standard inspection approach of the Department of Manpower and Transmigration (Dinas Tenaga Kerja dan Transmigrasi / Disnaker and will help your company prepare for an inspection by the Disnaker in the aspects of Work Norms and Company Legality. The inspection by the Disnaker has no particular guideline in terms of its schedule.
What are the benefits?
Our team of legal professionals can assist you with managing company’s compliance obligations, board resolution and minutes, company license maintenance, and other bespoke Corporate Secretarial Services.
We assist our Clients in preparing accurate and timely financial reports to comply with complex financial reporting requirement and Generally Accepted Accounting Principles. We also provide CFO Support Services, to assist you with the more strategic financial matters of your business.