Indonesia Payroll provides several tax processing methods to accommodate different payroll and tax requirements.
Gross to Net (GTN)
With the Gross to Net (GTN) method:
Tax is calculated based on the employee's gross wages.
The tax amount is deducted from the employee's earnings.
The remaining amount becomes the employee's net pay.
Use this method when the employee is responsible for paying their own income tax.
Net to Gross (NTG)
With the Net to Gross (NTG) method:
The employee's salary is treated as a net amount.
The system calculates the gross wage required to produce the agreed net pay.
The employer bears the employee's tax liability.
Use this method when the employee is guaranteed a fixed take-home pay.
Tax as Benefit
With the Tax as Benefit method:
Tax is calculated in the same way as the Gross to Net (GTN) method.
Instead of deducting the tax from the employee's wages, the employer pays the tax on the employee's behalf.
Use this method when the employer provides tax as an employee benefit.
User Defined (GTN + NTG)
The User Defined method allows both GTN and NTG tax calculations within the same payroll.
Tax is calculated at the pay element level.
Each pay element must be configured with either a GTN or NTG tax code in its properties.
For fixed pay items, the system uses the NTG wage defined under Wage Formulae to identify NTG items.
Any fixed items that are not defined as NTG are treated as GTN items.
Use this method when different pay elements require different tax treatment.
Additional information
To view detailed tax calculations:
Recalculate the employee's pay record.
Open the Preview Log file to review the tax calculation details.