What Is Payroll Software in Indonesia and How Does It Work?
Learn what payroll software in Indonesia is and how it works, from entering attendance data to automatic tax, insurance and BPJS deductions for employees.
Every employee wants to be paid on time. If a company has only 10 to 20 employees, HR can probably calculate salaries by hand without losing much time. But what about a company with hundreds of employees? That is where payroll software in Indonesia comes in, such as Spisy Software from Sakura System, which makes the work much easier.
What Is Payroll Software?
Payroll software is a type of application built specifically for everything related to payroll and the monthly calculation of employee salaries. If you used to calculate pay by hand, modern software lets you do it much faster.
Payroll clearly makes it more efficient to handle a company's salary calculations. It is fair to say that payroll has a major effect on how smoothly a company operates. With this software, the HR team can run salary payments with far less effort.
With payroll software in Indonesia, a company can calculate employee salaries automatically, whether based on working hours or attendance. Because these inputs are already integrated into the system, the whole process becomes much easier.
How Payroll Software Works
Now that you know why this software matters for a company, you also need to know how it works. In general, it simplifies the calculation of employee salaries. The first step is usually to enter data on working hours or attendance.
Next, the system automatically withdraws funds from the company's account or deposits and sends them to each employee's bank account every month. Those employee accounts must be registered beforehand to keep transactions smooth.
Before that happens, payroll software in Indonesia such as Spisy from Sakura System also calculates each employee's deductions and allowances. In practice, an employee first receives a gross salary based on the hours worked or attendance record.
The gross salary then has automatic deductions applied for the costs the employee is required to pay, such as tax, insurance and BPJS Ketenagakerjaan (Indonesia's employment social security program). The employee receives a net salary without having to handle other bills or deductions, because the software does it all automatically.
Those are the main things to know about this software. In daily operations, payroll software plays a very important role in a company, because it makes the work easier for staff in the HR department.
