Employers must identify the types of income received by employees

Oct 13, 2025 by wbrum.org 127 views

The Importance of Income Tax (PPh) in National Development

In an effort to meet the government's financial needs to finance national development, adequate sources of funds are needed. In the past, the Indonesian government relied more on the oil and gas sector (oil and gas) as the main source of income. However, over time, the oil and gas sector has declined and can no longer be relied upon due to limited resources. Therefore, the government needs to explore the potential of other financial resources, and taxes are one important solution. Taxes, especially income tax (PPh), are expected to be a mainstay in supporting sustainable national development. The government's financial needs are vast, and taxes play a crucial role in financing various development programs, ranging from infrastructure, education, health, to social welfare.

Definition of Income Tax (PPh) Article 21

Income Tax (PPh) Article 21 is a tax that is imposed on the income received or obtained by an individual taxpayer in connection with work, services, or other activities. This tax is an obligation that must be met by the employer, in this case the North Sumatra Administration Center Bureau, against its employees. Every employee who receives income from this bureau will be subject to Article 21 Income Tax in accordance with applicable regulations. Income Tax (PPh) Article 21 is a mandatory tax that must be paid by employees who receive income from their employer. The tax is calculated based on the employee's income, and the employer is responsible for deducting the tax from the employee's salary.

Procedure for Collection of Income Tax (PPh) Article 21

The procedure for collecting Income Tax (PPh) Article 21 is as follows:

Identification of Income

Employers must identify the types of income received by employees. Income can come from salaries, benefits, honorariums, or other forms of rewards. The employer must accurately identify the types of income received by employees to ensure that the correct tax is deducted.
The employer must also identify any non-taxable income (PTKP) that is exempt from tax. Non-taxable income includes income that is exempt from tax under the applicable regulations.

Tax Calculation

After knowing the total employee income, the next step is to calculate Article 21 Income Tax. This calculation refers to the applicable tax rates and non-taxable income (PTKP) determined by the government.
The employer must calculate the tax based on the employee's income and the applicable tax rates. The tax rate is determined by the government, and the employer must apply the correct tax rate to the employee's income.
The employer must also calculate any non-taxable income (PTKP) that is exempt from tax. Non-taxable income includes income that is exempt from tax under the applicable regulations.

Cutting and Payment of Tax

Cutting must be done before the salary is paid to ensure that tax obligations can be met on time. The employer must deduct the tax from the employee's salary before paying the salary.
The employer must pay the tax to the government on behalf of the employee. The employer is responsible for paying the tax to the government on behalf of the employee.
The employer must also provide evidence of tax payment to the employee. The employer must provide evidence of tax payment to the employee, which is important for the purposes of filling the annual tax returns.

The Importance of Tax Collection for National Development

Tax collection, especially Article 21 Income Tax, has a very crucial role in financing national development. Funds obtained from taxes are used for various development programs, ranging from infrastructure, education, health, to social welfare. With the increase in public awareness about the importance of paying taxes, it is hoped that the contribution of taxes will be even greater and can support sustainable economic growth.

As an employee at the North Sumatra Administration Center Bureau, an understanding of the procedures for collecting PPh Article 21 is very important. This is not only a legal obligation, but also shows compliance with the taxation system in Indonesia. Thus, we contribute to better state development.

By following the procedures for collecting and cutting the correct Article 21 Income Tax, it is hoped that tax management in the North Sumatra Administration Central Bureau can run well, transparently, and accountably. In addition, the active participation of employees in fulfilling tax obligations will have a positive impact on the community and national development as a whole.

Conclusion

In conclusion, the procedure for collecting Income Tax (PPh) Article 21 is a crucial step in financing national development. The employer must accurately identify the types of income received by employees, calculate the tax based on the applicable tax rates, and cut and pay the tax on behalf of the employee. By following the procedures for collecting and cutting the correct Article 21 Income Tax, it is hoped that tax management in the North Sumatra Administration Central Bureau can run well, transparently, and accountably.

Q: What is Income Tax (PPh) Article 21?

A: Income Tax (PPh) Article 21 is a tax that is imposed on the income received or obtained by an individual taxpayer in connection with work, services, or other activities. This tax is an obligation that must be met by the employer, in this case the North Sumatra Administration Center Bureau, against its employees.

Q: Who is responsible for paying Income Tax (PPh) Article 21?

A: The employer is responsible for paying Income Tax (PPh) Article 21 on behalf of the employee. The employer must deduct the tax from the employee's salary before paying the salary.

Q: How is Income Tax (PPh) Article 21 calculated?

A: The tax is calculated based on the employee's income, and the employer is responsible for applying the correct tax rate to the employee's income. The tax rate is determined by the government, and the employer must apply the correct tax rate to the employee's income.

Q: What is non-taxable income (PTKP)?

A: Non-taxable income (PTKP) is income that is exempt from tax under the applicable regulations. The employer must identify any non-taxable income (PTKP) that is exempt from tax and exclude it from the tax calculation.

Q: Why is it important to accurately identify the types of income received by employees?

A: Accurately identifying the types of income received by employees is important to ensure that the correct tax is deducted. If the employer fails to accurately identify the types of income received by employees, it may result in incorrect tax deductions or even tax evasion.

Q: What is the deadline for paying Income Tax (PPh) Article 21?

A: The deadline for paying Income Tax (PPh) Article 21 is typically the same as the deadline for paying employee salaries. The employer must pay the tax to the government on behalf of the employee before paying the salary.

Q: What are the consequences of failing to pay Income Tax (PPh) Article 21?

A: Failing to pay Income Tax (PPh) Article 21 may result in administrative sanctions, fines, or even tax evasion charges. The employer may also be liable for any penalties or interest that accrue as a result of late payment.

Q: How can employees verify that their Income Tax (PPh) Article 21 has been paid?

A: Employees can verify that their Income Tax (PPh) Article 21 has been paid by checking their salary slips or by contacting their employer's HR department. The employer must provide evidence of tax payment to the employee, which is important for the purposes of filling the annual tax returns.

Q: What is the role of the government in enforcing Income Tax (PPh) Article 21?

A: The government plays a crucial role in enforcing Income Tax (PPh) Article 21 by setting tax rates, determining non-taxable income (PTKP), and imposing administrative sanctions for non-compliance. The government also provides guidance and support to employers and employees to ensure compliance with the tax laws.

Q: How can employees report any discrepancies or errors in their Income Tax (PPh) Article 21?

A: Employees can report any discrepancies or errors in their Income Tax (PPh) Article 21 by contacting their employer's HR department or by contacting the government's tax authority. The employer or the government's tax authority will investigate the matter and take necessary action to correct any errors or discrepancies.

Q: What is the impact of Income Tax (PPh) Article 21 on national development?

A: Income Tax (PPh) Article 21 has a significant impact on national development by providing a stable source of revenue for the government to finance various development programs, ranging from infrastructure, education, health, to social welfare. The tax also promotes economic growth and stability by encouraging employers to invest in their employees and by providing a fair and transparent tax system.