Many companies in Indonesia have now switched to Indonesian HR software to manage payroll. That is because the software offers many conveniences. Unfortunately, some HR teams still make mistakes in salary calculations even when they are assisted by software. Here are some mistakes that should be avoided.Mistakes HR Should Avoid
Treating Employees as Subcontractors
Differences in employee status compared with contractor positions can certainly affect the payroll calculation process. Unfortunately, many companies treat their employees like independent vendors or contractors. The aim is to avoid paying double taxes.This can harm employees, and dissatisfied employees can in turn affect company performance. So make sure you understand employees' rights and obligations first, whether they are contract or permanent staff. That way, payroll calculations using HR software will run smoothly and will not harm anyone.
Assigning Employees to the Wrong Classification
Another mistake HR should avoid, even when using Indonesian HR software, is inaccurately determining employee classification. Employees are generally divided into two major categories: exempt employees and non-exempt employees.Exempt employees are staff whose pay system does not follow employment regulations, such as not receiving overtime pay. Exempt employees are called white-collar workers because they hold strategic positions, such as managerial and others.Non-exempt employees, on the other hand, are staff whose pay is regulated under the labor law (UU Ketenagakerjaan, Indonesia's Manpower Law), so they are entitled to overtime pay in accordance with regulations. Companies must classify employees accurately so they receive these rights. That way, HR software can calculate overtime correctly according to the applicable rules.
Incomplete Data Documentation
Indonesian HR software is designed to manage company and employee data neatly, so that the data can be used whenever it is needed. Unfortunately, incomplete data documentation will only keep the HR software from performing at its best.As a result, payroll calculations can be disrupted and errors can occur. Therefore, make sure the required data is properly stored in the system, such as attendance data, employee status, work contracts, taxes, and so on.That way, payroll calculations using HR software will run smoothly. If even one mistake is made, the payroll process will become inaccurate. For example, you might enter an employee's status as contract when it should be permanent. Their allowances will certainly be calculated incorrectly.That covers some of the mistakes to avoid even when you are already using HR software. HR software calculations can run into problems if the HR team itself makes errors like those above. To help HR perform well and avoid these mistakes, you can use the SPISy software from Sakura System, which offers complete features. Interested in trying it?
