PART 10 | TUTORIAL E-BUPOT 21/26 | Perbedaan Perhitungan PPh Pasal 21 Nett, Gross, dan Gross Up

Summary

This video explains the differences between three methods of calculating PPh Pasal 21 tax in Indonesia: net, gross, and gross up. The net method has the employer covering the tax, leaving the employee's salary unaffected. The gross method involves tax deductions from the employee's salary, reducing their take-home pay. The gross-up method increases the gross salary to cover the tax, ensuring the employee receives the same net salary as in the net method. The video provides insights into when each method is beneficial for both employers and employees.

Takeaways

• 😀 The script discusses three methods for calculating PPh Pasal 21 tax: net, gross, and gross-up.
• 😀 The net method means the company covers the PPh Pasal 21 tax, leaving the employee with their full salary, which is tax-free.
• 😀 The gross method involves the employee directly paying the PPh Pasal 21 tax, with no company support for the tax burden.
• 😀 The gross-up method adds the PPh Pasal 21 tax to the employee's salary, so the employee's net pay remains unaffected by the tax.
• 😀 In the gross-up method, the company increases the employee's salary to cover the tax, which results in a higher gross salary for the employee.
• 😀 For net and gross-up methods, the final net salary remains the same, even though the gross salary differs due to tax handling.
• 😀 The company cannot deduct the PPh Pasal 21 tax paid for net or gross-up methods from its expenses for tax purposes.
• 😀 Employees' salary in the gross method is reduced directly by the PPh Pasal 21 tax, resulting in the lowest take-home pay among the three methods.
• 😀 In all methods, other deductions like BPJS (social security) and pension contributions are the same for the employee.
• 😀 The video aims to clarify the differences between these methods, helping HR or finance departments choose the right method for their companies.

Q & A

What are the three methods discussed for calculating PPh Pasal 21 in the video?

The three methods discussed are Net, Gross, and Gross-up methods.

What is the main difference between the Net and Gross methods for PPh Pasal 21?

The main difference is that in the Net method, the company covers the PPh Pasal 21 tax, meaning the employee receives their full agreed salary. In the Gross method, the PPh tax is deducted from the employee’s salary directly, reducing the net income.

How does the Gross-up method differ from the other two methods?

In the Gross-up method, the company still covers the PPh Pasal 21 tax, but the tax is included in the employee’s gross salary calculation, effectively raising the gross salary. The employee’s net salary remains the same as in the Net method.

How does the tax affect the employee’s net income in the Gross method?

In the Gross method, the tax directly reduces the employee’s net income because the PPh Pasal 21 tax is deducted from the employee's salary.

What is the impact of the Net method on the employee’s take-home pay?

In the Net method, the employee's take-home pay remains as expected because the company covers the PPh Pasal 21 tax, and only other deductions like BPJS and pension contributions are applied.

In the Gross-up method, why is the employee’s gross salary higher compared to the other two methods?

The employee’s gross salary is higher in the Gross-up method because the company adds the value of the PPh Pasal 21 tax to the salary, making it appear as though the tax is part of the income. This ensures the employee's net income remains the same as in the Net method.

What happens to the company's financial responsibility under the Net and Gross-up methods?

In both the Net and Gross-up methods, the company is responsible for covering the PPh Pasal 21 tax. In the Gross-up method, the tax is added to the employee's gross salary, while in the Net method, the tax is simply absorbed by the company without changing the employee’s gross salary.

What is the disadvantage of using the Gross method for the employee?

The disadvantage of using the Gross method for the employee is that their net income is lower, as the PPh Pasal 21 tax is directly deducted from their gross salary.

Why is it said that the Gross-up method is essentially similar to the Net method in terms of net salary?

Both the Gross-up and Net methods result in the employee receiving the same net salary, but the Gross-up method increases the employee’s gross salary to include the PPh Pasal 21 tax, while the Net method leaves the gross salary unaffected by the tax.

What is the financial implication for the company when using the Net and Gross-up methods?

For both the Net and Gross-up methods, the company bears the PPh Pasal 21 tax cost. However, in the Gross-up method, the company needs to increase the gross salary to account for the tax, while in the Net method, the company absorbs the tax without altering the employee’s gross salary.