5 Core Components of Payroll Software You Need to Know
Payroll software components explained: overtime pay, BPJS, income tax, allowances and base salary, and how each one works in HRIS payroll software.
HRIS payroll software in Indonesia is a type of application that makes HR work easier. One HRIS product is Spisy, one of the best products from Sakura System. That is because this application, which focuses on salary calculation and employee data, offers a great many benefits. Before going further, let's look at the components it is built on.
Components of HRIS Payroll Software
- Overtime Pay or Incentives
One component of this application is incentives or overtime pay. If a company needs employees to work outside their regular hours, the company is required to pay overtime wages.
That is why overtime pay or incentives are something you must include as a payroll component. In addition, the government requires that overtime pay be recorded for employees who work outside their normal hours.
- BPJS Employment and Health Insurance
Besides overtime or incentives, another component an HRIS payroll application in Indonesia must have is payment of BPJS Ketenagakerjaan (employment social security) and BPJS Kesehatan (national health insurance). This follows government regulations, under which every company operating in Indonesia must pay both BPJS Kesehatan and BPJS Ketenagakerjaan for its employees.
- Income Tax (PPh 21)
Next comes the deduction for income tax, known as PPh 21. Income tax is a deduction, or tax, that employees pay based on the salary they receive. This is also regulated by the government. To make payment easier, the application usually includes this component in the salary calculation.
- Allowances
Besides tax deductions, an HRIS payroll application in Indonesia also adds allowances paid to employees. An allowance differs from base salary, since it is a sum of money given to employees for a specific purpose.
Keep in mind, though, that not every employee receives an allowance. Allowances are granted by mutual agreement between the company and the employee. Even so, this component still has to go into the payroll calculation.
- Base Salary
As you know, base salary is the wage that must be paid to employees for a month of work. Although the government sets a regional minimum wage (UMR) for each area, a company will usually still have its own standard wage or salary. This is the most important component you must include.
Those are the components that belong in a payroll calculation. Once you have entered them, you no longer have to calculate by hand each month. One product we recommend is Spisy from Sakura System, because the system in this application will make your work much easier.
