Calculate the PPh 21 tax allowance in mixed policy between gross and net with the new PP 58 2023 and

06 February 2024 474 views
Calculate the PPh 21 tax allowance in mixed policy between gross and net with the new PP 58 2023 and
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The tax office provided a calculator for calculating PPh21 for pure net and gross policy. However, in business, HR policies are commonly more complex than just pure net and pure gross because gross salaries will make it easy to budget employee costs. However, another new tax regulation also requires benefits such as medical to become taxable income for the employees, and most companies provide tax allowance for this kind of benefit to avoid dropping employees' income because of additional tax.

 

PP 58 and PMK 168 do not explain how to treat this tax allowance. As practitioners, we should provide a fair solution for both employees and companies. We find there are three kinds of methods to solve this. We gave our clients a choice of preferences, including the best options to minimize employee complaints and the impact on the company. Most employee complaints are that the tax deductions are more significant which impacted monthly take-home pay less than the previous annualized monthly tax calculation,. However, in December, the company can return the overpayment of tax. In general, experiencing socialization with the employee is the most critical factor, as well as making the employee aware that there is a possibility that the tax deduction will be higher in December. If you have any questions, especially about calculating the tax allowance with this new regulation, we are happy to help you by contacting info@widyapresisisolusi.com, including using Myquantumhr.

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