Employee Other Income in Frappe HR: Accounting for Income Beyond Salary
Employee Other Income records income an employee earns outside their salary that should be considered when computing their income tax. Declaring it ensures the employee’s total taxable income and therefore their tax is accurate, rather than based on salary alone.
You will find it under Home > Human Resources > Payroll > Employee Other Income.
BEFORE YOU START
Have the Employee, the relevant Payroll Period, and Company ready, since other income is recorded against the period for tax purposes.
How to create an Employee Other Income
- Open the Employee Other Income list and click New.
- Select the Employee, the Payroll Period, and the Company.
- Enter the amount of the other income and describe its source.
- Save, then Submit.
How it affects tax
The recorded other income is added to the employee’s taxable income for the payroll period, so the income tax computed in payroll accounts for it. This keeps tax deductions correct for employees who have income from sources the company doesn’t otherwise see and helps them avoid a shortfall at year-end.
TIP
Let employees declare other income early in the period so the extra tax is spread across more salary slips. Declaring late means the same additional tax is recovered over fewer months, producing a heavier deduction in each.
Related Topics
- Employee Tax Exemption Declaration
- Employee Tax Exemption Proof Submission
- Payroll Period
- Income Tax Slab
- Salary Slip
SUMMARY
Employee Other Income records income an employee earns outside their salary so it’s included in tax computation. Create it with the employee, payroll period, company, the amount, and its source, then submit. The income is added to the employee’s taxable income for the period, keeping payroll tax accurate and helping employees avoid a year-end shortfall. Declaring early spreads the extra tax across more salary slips.
