The Importance of Article 21 Income Tax Administration System

Oct 13, 2025 by wbrum.org 92 views

**Income Tax Administration System (PPH) Article 21 to Employees at the Faculty of Economics, University of North Sumatra, Medan**

Introduction

As a leading institution in the field of economics, the Faculty of Economics, University of North Sumatra, Medan, requires a well-structured administration system to carry out its operations effectively. One crucial aspect of administration is tax management, particularly Article 21 of Income Tax (PPh) that is charged to employees. In this article, we will discuss the importance of the Article 21 Income Tax Administration System at the Faculty of Economics, University of North Sumatra, Medan, and its role in ensuring compliance with taxation regulations and the smooth payment of taxes.

The Importance of Article 21 Income Tax Administration System

Article 21 Income Tax is a tax imposed on employee income, and it is essential for the Faculty of Economics, University of North Sumatra, Medan, to have a structured system to calculate and cut taxes from employee salaries. This system must consider gross income, office costs, and other reductions that are permitted based on tax regulations. The Faculty of Economics must also record every Article 21 Income Tax cutting neatly and systematically, and provide proof of payment through a salary slip or other related documents.

Calculation and Cutting of Taxes

The Faculty of Economics must have a structured system to calculate the Article 21 Income Tax owed by each employee. This system must consider the following:

Calculation: The Faculty of Economics must have a system to calculate the Article 21 Income Tax owed by each employee, taking into account gross income, office costs, and other reductions that are permitted based on tax regulations.
Cutting: After the calculation, Article 21 Income Tax is deducted from employee salaries every month.
Recording: Every Article 21 Income Tax cutting must be recorded neatly and systematically, and proven by a salary slip or other related documents.

Tax Reporting

The Faculty of Economics is required to report Article 21 Income Tax deducted from employee salaries every year through Annual Notification (SPT). To facilitate the reporting process, the Faculty of Economics can utilize the e-Filing services provided by the Directorate General of Tax (DGT). The Faculty of Economics has the obligation to report SPT on time, in accordance with applicable regulations. Delay in reporting can result in administrative sanctions.

Tax Payment

Article 21 PPh that has been deducted from employee salaries must be deposited to the State Treasury through a bank appointed by the DGT. The Faculty of Economics needs to reconcile between the number of Income Tax Article 21 deducted by the number of Article 21 Income Tax deposited to the State Treasury to ensure compatibility. The Faculty of Economics must also save proof of tax payment as proof of repayment of tax obligations.

Analysis and Application

A good and structured Article 21 PPh administration system at the Faculty of Economics, University of North Sumatra, Medan, will provide several benefits, such as:

Tax Compliance: A structured system helps the Faculty of Economics comply with taxation regulations and avoid sanctions.
Efficiency: An automated and integrated system can assist the Faculty of Economics in managing tax data and reducing errors.
Transparency: Transparent systems provide clear information to employees regarding Article 21 Income Tax discounts and their tax obligations.

Importance of Socialization

To ensure the smoothness of the Article 21 Income Tax Administration System, it is essential to conduct socialization to all employees. Socialization can be carried out through seminars, workshops, or dissemination of material related to tax regulations and Article 21 Income Tax Administration Systems applied in the Faculty of Economics. By implementing an Article 21 Income Tax Administration System that is structured, transparent, and efficient, the Faculty of Economics, University of North Sumatra, Medan, can carry out tax obligations well and at the same time support the smoothness of internal administration.

Conclusion

In conclusion, the Article 21 Income Tax Administration System plays a crucial role in ensuring compliance with taxation regulations and the smooth payment of taxes at the Faculty of Economics, University of North Sumatra, Medan. A well-structured system can provide several benefits, such as tax compliance, efficiency, and transparency. Therefore, it is essential to implement a good and structured Article 21 PPh administration system at the Faculty of Economics, University of North Sumatra, Medan, to support the smoothness of internal administration and ensure compliance with taxation regulations.

Recommendations

Based on the discussion above, the following recommendations are made:

The Faculty of Economics, University of North Sumatra, Medan, should implement a structured system to calculate and cut taxes from employee salaries.
The Faculty of Economics should record every Article 21 Income Tax cutting neatly and systematically, and provide proof of payment through a salary slip or other related documents.
The Faculty of Economics should report Article 21 Income Tax deducted from employee salaries every year through Annual Notification (SPT) and utilize the e-Filing services provided by the Directorate General of Tax (DGT).
The Faculty of Economics should deposit Article 21 PPh that has been deducted from employee salaries to the State Treasury through a bank appointed by the DGT.
The Faculty of Economics should conduct socialization to all employees to ensure the smoothness of the Article 21 Income Tax Administration System.

By implementing these recommendations, the Faculty of Economics, University of North Sumatra, Medan, can ensure compliance with taxation regulations and the smooth payment of taxes, and at the same time support the smoothness of internal administration.