TaxSavvyID

Employee leaving mid year

Karyawan resign bulan Juni. Hitung PPh 21 terakhirnya bagaimana?

The situation

When an employee leaves during the year, the employer recomputes tax for the months worked using Art 17 rates in the final month and issues a slip.

The law

  • PMK 168/2023 on Article 21 and 26 withholding: Procedures for PPh 21 and 26 on employment and other pay, including TER categories A, B and C and the year end recalculation
  • Art 17, Law 7/1983 on Income Tax (PPh Law), as last amended by Law 6/2023: Individual rates: 5 percent up to IDR 60 million, 15 percent to IDR 250 million, 25 percent to IDR 500 million, 30 percent to IDR 5 billion, 35 percent above; company rate 22 percent

What it means for you

The final month works like December. Compute tax on income for January to June, annualise as the rule requires, and take the difference from TER withholding. Give the slip so the employee can use it with the next employer and in the annual return.

What to do

  1. Prepare final pay with all items.
  2. Recompute tax in the last month.
  3. Issue the BPA1 slip.
  4. Close the employee in payroll.

Late slips leave the employee unable to file correctly.

We can do this for youMonthly payroll tax (PPh 21 and 26) with TER rates, December true up and annual slips: IDR 2.750.000

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