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  1. Overview: Indonesia
  2. Global PEO and payroll
  3. Global HR Compliance
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
Other counrtries

Global PEO and Payroll in Indonesia

It may be that you’ve dreamed of expanding your business to a different country and thought it would be hard to do. You’re not wrong—there are many factors to consider and many things that must be done to achieve success. But there’s no reason to despair; if you take a systematic approach and keep a clear head, you’ll soon see the path forward.

The first thing you should understand about international expansion is that it requires a lot of planning. The first step is to know your business goals—you need to identify what makes your company successful and which aspects can help your company grow internationally. This will also help you define how much growth you want from the expansion and how much risk you’re willing to take on to achieve it.

Once you’ve determined your goals, the next step is research. Several factors can make or break an international expansion: not only will you want to know about the market itself (population size, purchasing power, economic stability), but also about the laws and regulations that could affect your business operations, as well as tax rates and customs issues. Once you have a firm grasp of all these variables, it’s time.

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What is a Global PEO?

A global PEO (Professional Employer Organization) is an arrangement between a company and a third-party global employment solutions provider who takes on all of the HR functions on behalf of the client. This could include handling global payroll to employee benefits, immigration support, providing guidance on local labor and tax legislation, and HR best practices. The PEO will ultimately provide services that help you better run your business, which in turn can help you focus on the tasks at hand.

A global PEO will relieve you of many of the global employment responsibilities associated t, including

  • Compliant hiring and firing of employees
  • Managing the employee benefits system
  • Handling payroll and benefit plans
  • Reporting payroll taxes
  • Any legal issues that may arise in your workplace

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10 Benefits Of Working With a Global PEO (Professional Employer Organization)

  1. There is no need to worry about global employment HR management when you have a global PEO. This organization can help you save costs and improve productivity, making it easier for your company to compete in difficult economic times.
  2. There are many reasons why working with a professional employer organization (PEO) is better than managing your HR department. A PEO understands the complexities of international employment laws and can help take the guesswork out of legal compliance. They can also reduce your time on administrative tasks and help you stay compliant with industry standards.
  3. PEOs can provide a broad range of employee benefits that companies that don’t use them may not be able to offer. With the help of a global PEO, you can prevent employee turnover and ensure that your employees are well taken care of while employed with you. Stable employees will be less likely to change companies or leave their jobs altogether.
  4. PEO clients can often offer their employees a more comprehensive benefits package than those who don’t. Such benefits may include healthcare, dental, and vision coverage, or retirement plans PEOs also offer retirement plans and other financial benefits.
  5. PEOs can provide their clients with competitive advantages in the marketplace by pooling resources and sharing global employment risks.
  6. In addition to managing legal requirements, a PEO can help you minimize your tax liability and simplify payroll administration processes. Using a PEO as your single contact for managing payroll and benefits coverage makes things easier because it reduces internal costs—you can focus on doing what you do best. At the same time, the global PEO gets every employee’s need taken care of.
  7. If you’re like many businesses and have trouble keeping track of each country’s requirement for mandatory employee benefits, unemployment claims, workers’ compensation, and other issues, you may find that using a global PEO saves you a lot of time and money. A global PEO will handle all your business-related social security and insurance needs and ensure that your employees get the coverage they need where they live. Because the PEO will be able to handle all of the details with one organization, it also helps cut down on internal costs—your company only has to pay one price for each policy rather than dealing with multiple companies across multiple jurisdictions.
  8. A professional employer organization (PEO) can help companies streamline the administration of benefits and payroll by serving as the sole resource for all your employees’ needs. PEOs provide their clients with benefits that include healthcare and retirement programs, human resources consulting, workers’ compensation coverage, and more. In addition to this array of services, a global PEO handles payroll processing and taxes.
  9. The key benefit of a global PEO is eliminating redundant administrative work. Rather than having to manage everything internally, companies can rely on an expert third party to handle all aspects so they can focus on their core business operations. This efficiency reduces internal costs while improving service delivery to employees—and everyone wins!
  10. As a business owner, you face many potential threats. Global PEO can help reduce these risks by providing compliance support with labor and tax laws, insurance coverage, record keeping, and immigration issues.

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The Remote Work Revolution & How PEOs Can Help You Adapt

As workforces continue to evolve, they demand that leaders like you shed the old work models of yesteryear and adapt to the new ones built in front of your eyes.  Global PEOs are here to help you navigate this changing employment paradigm, but only if you are willing to have an open mind about where your business is going.

Leadership teams across the globe are still struggling to figure out the best way to manage their internationally distributed workforce. Global PEOs are uniquely positioned to help companies like yours deal with these big changes, including the shift to remote work. Just a few years ago, the idea of a completely remote workforce was unheard of, but today it seems like a permanent reality for many.

What Services Does a Global PEO (Professional Employment Organization) Provide?

  1. Global Payroll management;
  2. Compliance with local tax rules (file & deposit) of the country where the EOR company is located;
  3. Handling compliant employment contracts:
  4. Background, education, and other checks;
  5. Onboarding and termination processes, as well as employee’s compensation;
  6. Arranging visas and work permits for employees;
  7. Ensuring the working process is organized under local labor laws;
  8. Processing workers’ medical insurance and other benefits (day-offs, bonuses, and more);
  9. Global employment process maps, matter maps, employment guides, and other documentation.

Global PEO —  One-Stop Destination for Global Businesses

When it comes to managing the employment side of your business, there are many options available to get the help you need. an ever-growing number of vendors can assist you with various aspects of your human resource services, including payroll, employee benefits, and more.

Working with a professional employer organization (PEO) is a great way to get all the help you need in one place. PEOs can manage all of your employment-related needs, from taxes and retirement plans to background checks and employee discounts.

Partnering with a PEO saves you time and hassle by consolidating all of your HR needs into one relationship. This also gives you peace of mind knowing that experts are handling everything for you so that you can focus on running your business.

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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Indonesia

Compensating your local and expat workforce in Indonesia and closely adhering to Indonesian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Indonesian labor and taxation laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.

Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Indonesia by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.

Global Payroll Calculator: Accurate Global Employment Cost Estimation

When hiring employees and contractors across the globe, you may not be choosing the most cost-effective and business-friendly country.

  • Do you know which country is the most cost-effective place to hire employees? 
  • What are the costs of entity establishment and legal representation?
  • What are the payroll costs and management fees?
  • What are your ongoing annual tax compliance costs?
  • Are you fully aware of banking implications?
  • Did you know that labor laws and hidden costs could make your company less efficient when choosing a country to run your business? 
  • Did you know that there could be a more cost-effective country to hire employees in and save up to 50%?

This is because countries have different labor laws, compliance, and tax regulations. What if, instead of limiting your company’s international expansion by cutting through the jungle of local regulatory compliance, tax, labor, and immigration requirements, you could have all the information of 190 countries at your fingertips?

Acumen International offers the Global Payroll Calculator to help businesses understand the compliance requirements for conducting business in a new country. Acumen’s research team tracks developments in 190 countries around the globe. It provides up-to-date data on local regulations related to tax, payroll regulations, benefits, hiring practices, compliance requirements, and other labor-related factors that impact an employer’s bottom line. This valuable information makes the Global Payroll Calculator an invaluable tool for businesses looking to expand internationally.

Global Payroll Calculator helps companies reduce labor costs by providing up-to-date information on hiring, compensation, and tax requirements. It is also an ideal tool for quickly locating employees in any country.

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International Global Payroll and Taxation in Indonesia

Employment related taxes

Personal Income Tax (PIT). Personal income tax in Indonesia is a tax collected from individuals and imposed on various sources of income such as salaries, pensions, interest, and dividends. PIT revenues are a significant source of income for the Indonesian government. Every taxpayer’s employer is responsible for calculating any taxes that must be withheld from salaries, paying these taxes to tax authorities on a monthly basis, and providing the employee with annual tax figures.

The prior personal income tax system in Indonesia only permitted individuals with just a single source of income to have their income tax processed by their employer. Employers were to pay tax on all their staff under one tax registration number (NPWP), assuming that only this single source of revenue was available to staff. Currently, it is the legal responsibility of the individual taxpayer to ensure registration with the tax office, compliance with the laws, and payment of taxes due.

Indonesia uses a global income tax system for the imposition of personal income tax. This means that individuals who are tax residents in Indonesia are to pay tax to the Indonesian government not only on the revenue they have earned from their work in Indonesia, but also on the revenue they have earned from their work abroad.

Corporate Income Tax (CIT), Resident corporations are taxed based on worldwide income. A foreign company carrying out business activities through a permanent establishment in Indonesia will generally be required to assume the same tax obligations as a resident taxpayer.

Taxable business profits are calculated on the basis of normal accounting principles as modified by certain tax adjustments. Generally, a deduction is allowed for all expenditures incurred to obtain, collect, and maintain taxable business profits. A timing difference may arise if an expenditure recorded as an expense for accounting cannot be immediately claimed as a deduction for tax.

Resident taxpayers and Indonesian permanent establishments of foreign companies have to settle their tax liabilities either by direct payments, third party withholdings, or a combination of both. Foreign companies without a permanent establishment in Indonesia have to settle their tax liabilities for their Indonesian-sourced income through withholding of the tax by the Indonesian party paying the income.

Payroll Cycle in Indonesia

Wages may be paid on a weekly or fortnightly basis, provided that the calculation is based on the monthly wages. Wages may also be set and paid on piece rate basis.

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Acumen International – Your Single Point of Truth and Global Employment PEO Solutions Provider in Indonesia

  1. 100 % compliant, quick, easy market entry. Acumen Global PEO is your local legal entity, helping you reduce the cost and time associated with incorporating.
  2. Immediate global employment service coverage in 190 countries
  3. Both a single point of contact and a dedicated account manager for your project for all target countries.
  4. Compliant and secure global employment operations. We help you adhere to all local laws and regulations in 190 countries
  5. A single contract for all in-country services (employment, immigration, legal, etc.)
  6. A single PEO provider assumes full responsibility for your international employees in multiple countries
  7. Payments are made within the UK or to the UK bank company account
  8. Fully compliant with standardized procedures and reporting systems
  9. You can delegate to Acumen Global PEO all HR responsibilities Payroll & benefits administration, background checks, and HR helpdesk
  10. Standard payroll breakdowns for all target countries
  11. As soon as we receive your request for a project in any country, we will send you a payroll breakdown and offer within 2 working hours
  12. Full 100% fee money-back guarantee for the employee or contractor payment delays.
  13. Tailored and 100% compliant employment contract drafts
  14. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions
  15. Acumen Global PEO protects your company’s Intellectual Property rights

With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.

Our Global PEO&Payroll Client
Employment risks mitigation
Tax compliance & payroll processing
Incorporation costs no need for own
entities
Effort 90% 10%
Coverage 190 countries 190 countries

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Global Employment Services: How a Global PEO can Help You in Business Transition

Acumen International PEO offers a unique blend of experience and service suite, providing global employment opportunities that are genuinely global-ready. If your company is working in transition, such as going through an acquisition or merger, or if you are experiencing a company liquidation, Acumen International can find a legal and compliant solution to hire your employees—anywhere in the world! Many companies struggle with handling the employees being left behind during these times of transition. It’s common for employees to feel insecure about their future employment prospects, particularly when they have been forced out of their positions.

This can also be problematic for companies, who will likely have open positions that need filling but still have lingering contracts to fulfill. In both cases, having a resource like Acumen International PEO can ensure that the company’s business continues without being negatively affected by the change. When you’re working with Acumen International, we take care of all the paperwork and legal obligations so that you can focus on completing your transition plans. We also handle everything from payroll, benefits, and even full payroll tax administration for all our employees worldwide. This gives employers peace of mind that all of their global obligations are fulfilled while allowing them to focus on their transition plans.

A reduction in the workplace can be a scary time for employees. Global PEO can provide outplacement services to help reduce the risk and ensure downsized employees have some assistance while searching for a new employer.

Disclaimer: Any of the above information is subject to changes imposed by Indonesian laws. To get the latest updates on taxation in Indonesia and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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