Tax Burden and Employee Performance in Response to the Average Effective Rate (TER) Scheme, with Perceptions of Fairness as a Mediating Factor (A Case Study of Company PQR Karawang, 2023–2024)

Laurencia Dyta Amanda (Program Studi Akuntansi Universitas Singaperbangsa Karawang)
Kosasih Kosasih (Fakultas Ekonomi dan Bisnis Universitas Singaperbangsa Karawang)
Angga Sanita Putra (Fakultas Ekonomi dan Bisnis Universitas Singaperbangsa Karawang)
Rizke Wiliyanti (Universitas Singaperbangsa Karawang)
Eva Maria Sulastri (Universitas Singaperbangsa Karawang)

Community: Jurnal Hasil Penelitian dan Pengabdian Masyarakat
Vol. 5 No. 1 (2026): Action Research and Community Development

This study aims to analyze the effect of implementing the Article 21 Income Tax deduction policy through the Average Effective Rate (TER) scheme on employees’ tax burden and performance, by examining the role of perceived fairness as a mediating variable. The research method used was a quantitative causal-predictive approach involving 317 employees of PQR Karawang Company during the 2023–2024 period as the sample. Data analysis was conducted using the Structural Equation Modeling – Partial Least Squares (SEM-PLS) approach based on SmartPLS 4 software. The test results indicate that the TER scheme has a positive and significant effect on perceptions of fairness and a negative and significant effect on employees’ tax burden, but it does not have a significant direct effect on employee performance. The conclusion of this study confirms that perceived fairness acts as a full mediator. This indicates that simplifying tax withholding administration through the TER Scheme does not automatically improve employee performance without being supported by transparent communication that shapes employees’ perceptions of fairness, while also confirming Attribution Theory and Equity Theory.