Managing payroll in Indonesia isn’t as simple as cutting paychecks. With layers of regulations, shifting tax policies, mandatory employee benefits, and government reporting requirements, businesses from the U.S., Canada, India, and beyond often find themselves stumbling into costly payroll mistakes.

Whether you're a startup exploring expansion or an established multinational operating a PT PMA, one compliance misstep can lead to penalties, audits, or even strained employee relationships. The good news? Most payroll mistakes are preventable—with the right guidance.Here are some of the most common payroll errors companies make in Indonesia—and how to sidestep them.