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Payroll Services in Indonesia for Startups and SMEs
Payroll is critical and complex. For startups and small to medium businesses in Indonesia, it can consume time, create compliance risks, and distract teams from growth. Many companies now outsource payroll to gain accuracy, stay compliant, and keep operations lean. Logiframe provides payroll outsourcing that aligns with Indonesian rules and modern cloud systems.

What Are Payroll Outsourcing Services in Indonesia
Payroll outsourcing is the delegation of salary processing, PPh 21 calculation, and BPJS administration to a specialist provider. Instead of managing spreadsheets and manual steps, your team supplies approved data and a partner completes the cycle from calculation to reporting.
Typical scope includes:
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Salary, allowance, and benefit calculations
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PPh 21 withholding, reporting, and annual reconciliation under UU HPP
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BPJS Kesehatan and BPJS Ketenagakerjaan contributions for JKK, JKM, JHT, and JP
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Payslips and reports for finance and HR
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Compliance checks against Indonesian labor and tax rules
Why Payroll Outsourcing Matters for Startups and SMEs
Smaller teams feel payroll mistakes quickly as penalties and employee dissatisfaction. Outsourcing helps you:
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Improve accuracy through standardized workflows and validation
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Maintain compliance with Indonesian regulations
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Save time for founders, HR, and finance
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Scale smoothly as headcount grows
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Improve trust with on time, error free payroll
Common Payroll Mistakes and How to Avoid Them
Frequent issues include wrong PPh 21 withholding, late BPJS payments, and manual entry errors. Others miss overtime rules, forget regional UMR or UMP updates, or fail to update brackets after rule changes.
Prevention steps:
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Lock data cutoffs and approval checkpoints
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Automate formulas for PPh 21, BPJS, and overtime
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Track regional UMR or UMP updates and apply them by location
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Reconcile payroll and accounting monthly
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Keep an audit trail for every change

Benefits for Scaling Businesses
Growth increases complexity. Outsourcing supports:
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Adding new employees or locations without disrupting cycles
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Managing multi entity payroll for holding structures
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Producing investor ready payroll summaries and cost reports
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Avoiding the cost of hiring and training a full payroll team.
Payroll Software Integration with Xero and NetSuite
Logiframe connects payroll to your finance stack to reduce manual posting and improve visibility.
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Xero for startups and SMEs: Automated journal entries, cost centers, and real time dashboards
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NetSuite for mid market and enterprise: Integrated payroll data with finance, HR, and compliance modules, with role based access and approvals
Payroll Compliance in Indonesia
Indonesian rules shape every payroll cycle. Core items include:
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BPJS Kesehatan and Ketenagakerjaan: Contributions for JKK, JKM, JHT, and JP based on current rates
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PPh 21: Withholding and reporting under UU HPP, with proper handling of bonuses, THR, and termination pay
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Overtime: Calculation based on labor regulations and approved timesheets
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UMR and UMP: Regional minimum wages applied per employee location
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Termination and severance: Computed under UU Ketenagakerjaan and UU Cipta Kerja
Regulations change. Outsourcing helps you keep calculations, reports, and submissions aligned with current requirements.
Important Clarification: Outsourcing vs EOR/PEO
Payroll outsourcing processes your payroll under your legal entity. You remain the employer of record and are responsible for compliance. An EOR or PEO is a different model where a third party may become the legal employer for certain purposes. Logiframe focuses on payroll outsourcing. Your company retains employer responsibilities.
Why Choose Logiframe for Payroll Outsourcing
- Experience with more than 600 clients across Indonesia and Southeast Asia
- End to end payroll management from salary to BPJS and PPh 21
- Technology partnerships as a Xero Platinum Partner and Oracle NetSuite Solution Provider
- Local regulatory knowledge combined with international standards
- Scalable support for five to five hundred employees and beyond
How We Work: Calendar, Controls, and SLAs
- Cycle and cutoffs: Clear data deadlines, approval windows, and pay dates
- Governance: Role based access, maker checker reviews, and audit logs
- Turnaround: Standard SLAs for onboarding, monthly changes, and offboarding
- Reports: Payslips, BPJS reports, PPh 21 summaries, and finance journals
Frequently Asked Questions
What is included in payroll outsourcing in Indonesia
Calculation of salaries and allowances, PPh 21 withholding and reporting, BPJS administration, payslips, and monthly compliance reports.
How does payroll outsourcing integrate with accounting
Logiframe posts journals to Xero or NetSuite with cost centers and departments so finance can reconcile payroll and produce timely reports.
Who is legally responsible for compliance
Your company remains the legal employer and is responsible for compliance. Outsourcing provides process, calculations, and submissions to help you meet those duties.
How are UMR or UMP differences handled
We apply the regional rate based on employee location and update rates when new regulations are issued.
Can outsourcing handle multi entity payroll
Yes. We support multiple entities and locations with consolidated reporting and separate statutory submissions.
Summary
Payroll should be reliable and compliant without consuming your week. Logiframe delivers payroll outsourcing that applies Indonesian rules, integrates with Xero and NetSuite, and scales as your team grows. You receive accurate payouts, clean reports, and fewer risks while your team focuses on building the business.