BPJS contributions paid by employees
In the event that BPJS contributions are paid by the employee, the component is included as a deduction from gross income. BPJS contributions included in deduction of gross income are:
Old-Age Insurance (JHT)
This program is intended as a substitute for lost workforce income due to death, disability or old age and is organized by the old-age savings system. The amount of old age pension program contributions borne by companies is 3.7%, while those borne by workers are 2%.
JHT premiums provided by employers are not included as an income enhancing component. The tax will be imposed when the employee receives the JHT. Whereas JHT premiums paid by employees are deductions from gross income.
Pension Insurance (JP)
It is a social security that aims to provide a decent degree of life for participants and / or their heirs by providing income after a participant enters retirement age, total disability or dies.
Pension Insurance (JP) is in effect since July 2015. JP program contributions are 3%, consisting of 2% of employer contributions and 1% of employee contributions.
Health Insurance (JKes)
Since 1 July 2015, the Health Insurance contribution rate paid by employees is 1%.
PTKP (Non-Taxable Income)
This is an important component of how to calculate Income Tax 21 2018 is the amount of gross income for taxpayers who are not taxed. In accordance with Director General of Taxes Regulation No. PER-16 / PJ / 2016 and PMK No. 101 / PMK.010 / 2016, here are the latest PTKP rates you need to know:
Category I: Rp54,000,000 / year or Rp 4,500,000 / month for self-taxpayers
Furthermore, Category II: IDR 4,500,000 per year or IDR 375,000 per additional month for married taxpayers
Category III: Rp. 54,000,000 / year or Rp. 375,000 / month for wives whose income is combined with the husband’s income
Finally, Category IV: Rp. 4,500,000 / year or Rp. 375,000 / month for each family member and blood family member in a straight line and fully dependent children, with a maximum of 3 people for each family.
Method or Method of Calculating Income Tax 21
Although the calculation of Income Tax 21 has been regulated by the Directorate General of Taxes, but in practice, each company has its own method of calculating PPh 21 which is adjusted to the tax benefits or net salary received by its employees.
There are 3 most common methods or ways to calculate Income Tax 21, namely:
Gross Method (Gross Salary without Tax Allowances)
The first way to calculate PPh 21 is the gross method. Can be applied to employees or income earners who bear income tax 21 payable themselves. This means that the salary of the employee has not been deducted with PPh 21.
Gross-Up Method (Net Salary with Tax Allowances)
The next way to calculate PPh 21 is to use the gross-up method. Can be applied to employees or income earners who are given tax benefits (salary increased first) in the amount of tax withheld.
Net Method (Net Salary with Corporate Borne Tax)
The last way to calculate pph 21 that can be used is the net method. Can be applied to employees or income earners who get a net salary with tax borne by the company.
How to calculate Income Tax 21 for Permanent Employees
To make it easier to understand how to calculate PPh 21 according to PTKP 2019, let’s take a case example. Suppose you work as a permanent employee in company X with a salary of Rp. 8 million / month.