For a foreign company operating in Indonesia, setting up payroll and managing mandatory social compliance is often more complex than the initial incorporation. The biggest hidden hurdle is not the salary amount, but the intricate monthly calculations and filings required for PPh 21 (Income Tax) and mandatory BPJS (Social Security).

Without local expertise, companies face a severe risk of non-compliance, leading to fines, back payments, and wasted HR resources. This is why Employer of Record (EOR) services are the ultimate solution for achieving immediate and guaranteed administrative compliance.

The Administrative Nightmare: Why DIY Payroll Fails

Indonesia’s payroll system is highly complex and integrated with state compliance. Here is the burden that the EOR model completely removes:

1. PPh 21 Calculation and Filing

Employee income tax (PPh 21) is calculated based on a complex progressive tax table, factoring in marital status, dependents, and mandatory deductions.

• The Risk: A single miscalculation, or late filing, results in high financial penalties applied retroactively by the Tax Office. Foreign companies rarely have the localized expertise or specialized software to manage this accurately every month.

2. Mandatory BPJS Enrollment and Reporting

Companies are legally required to enroll all employees in both BPJS Kesehatan (Health Care) and BPJS Ketenagakerjaan (Manpower).

• The Burden: This involves complex percentage contributions split between the employer and employee, mandatory monthly payments, and reporting to two separate government bodies. Failure to register an employee immediately is a direct violation of labor law.

3. Monthly Statutory Reporting

Payroll compliance requires not just making payments, but also submitting corresponding reports to multiple government agencies (Tax Office, Ministry of Manpower) simultaneously and accurately. This demands constant monitoring of changing local regulations.

The EOR Solution: Your Zero-Stress Compliance Button

When you partner with Accura as your EOR, you instantly transfer 100% of this administrative burden and risk to our team. Your company moves from handling compliance to simply managing your employee’s performance.

The true value of Accura’s EOR service is not hiring speed; it’s the guarantee of zero administrative risk on these critical statutory obligations:

Obligation Absorbed by Accura EOR	Compliance Guarantee
PPh 21 Management	Accurate monthly calculation, deduction, and filing with the Tax Office.
BPJS Enrollment & Payment	Immediate, mandatory registration and timely payment of all contributions to both funds.
Local Reporting	All monthly and annual employment-related reports are filed on time and accurately with the relevant government bodies.

Your HR team is freed from complex local math and filing deadlines, allowing them to focus on talent management, not bureaucracy.

Accura: The Trusted Partner for Instant Administrative Compliance

Accura’s EOR service is the ultimate tool for achieving instant administrative compliance in Indonesia. We provide the expertise and infrastructure necessary to manage the complexity of local tax and social security laws.

Stop wasting time and risking fines on mandatory filings. Partner with Accura and gain the peace of mind that your payroll and HR compliance is handled with 100% accuracy every single month.