Payroll Period in Frappe HR: The Period for Tax Computation
A Payroll Period defines the span over which income tax is computed for payroll usually your financial year. Tax slabs, exemptions, and the spreading of tax across salary slips all work within a payroll period, so it’s a key part of setting payroll up correctly.
You will find it under Home > Human Resources > Payroll > Payroll Period.
BEFORE YOU START
Have your Company set up and know the dates of the financial year (or other cycle) you run payroll and tax against.
How to create a Payroll Period
- Open the Payroll Period list and click New.
- Enter a Name and select the Company.
- Set the Start Date and End Date of the period (for example, 1 April to 31 March).
- Configure any standard tax exemption details applicable for the period.
- Save.
How the period is used
The payroll period is the frame for income tax calculation. Tax is computed on the projected annual taxable salary within the period and then spread across the salary slips in it, so each month’s deduction is a fair share of the year’s tax. Tax exemptions and declarations are also tracked against this period.
TIP
Set up the payroll period at the start of each financial year, before you run the year’s first payroll. Having it in place means tax is computed and spread correctly from the very first salary slip, with no mid-year recalculation.
Related Topics
- Income Tax Slab
- Salary Structure Assignment
- Salary Slip
- Payroll Entry
SUMMARY
A Payroll Period defines the timeframe typically the financial year over which income tax is computed for payroll. Create one with a name, company, and start/end dates, plus any standard exemption details. Tax is calculated on projected annual taxable salary within the period and spread across its salary slips, and exemptions are tracked against it. Set the period up before the year’s first payroll so tax is handled correctly from the start.
