Employee Other Income

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Overview

Employee Other Income — Business Overview

Employee Other Income is used in Dafater to record and manage all additional earnings paid to employees that fall outside their regular salary structure. This ensures that every form of extra income is properly recognized, controlled, and included in payroll and financial reporting.

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What Employee Other Income Is Used For

Employee Other Income captures payments such as: - One-time bonuses or incentives
- Allowances not included in the standard salary
- Commissions or performance-based rewards
- Ad-hoc payments approved by management

Its main purpose is to make sure these earnings are: - Paid accurately to employees
- Reflected correctly in payroll calculations
- Accounted for in internal cost tracking and reporting

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Prerequisites Before Using Employee Other Income

Before creating Employee Other Income records, the following should be in place: - Employees must be properly set up and active in Dafater
- Payroll periods should be defined and running
- Clear internal policies on what qualifies as “other income”
- Approval authority or guidelines for granting extra payments

These steps help maintain consistency and prevent unauthorized or incorrect payouts.

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Typical Workflow in Business Operations

1. Income Identification
   Management or HR identifies an additional payment due to an employee.

2. Recording the Income
   The payment details are recorded in Employee Other Income, specifying the employee, amount, and reason.

3. Review and Approval
   The entry is reviewed according to company approval rules.

4. Payroll Inclusion
   Once approved, the amount is included in the employee’s payroll for the relevant period.

5. Payment and Reporting
   The employee receives the payment, and the income is reflected in payroll summaries and financial reviews.

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Key Business Scenarios Where It Is Essential

Employee Other Income is especially important in situations such as: - Paying performance bonuses after quarterly or annual reviews
- Rewarding employees for exceptional contributions or project completion
- Providing special allowances due to temporary assignments or conditions
- Recording sales commissions that vary from month to month

In all these cases, it ensures transparency and proper payroll handling.

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Important Considerations for Users

• Always provide a clear reason for the income to support audits and internal reviews
• Ensure the payment aligns with company policies and approval limits
• Check timing carefully so the income is included in the correct payroll cycle
• Use Employee Other Income only for non-regular earnings, not standard salary components

By using Employee Other Income correctly, businesses can maintain accurate payroll records, reward employees fairly, and keep full control over additional compensation costs.

Basic Information

• Module: Payroll
• Document Type: Other

Fields

Field Name	Label	Type	Required	Options	Description
employee	Employee	Link	✓	Employee	Employee receiving additional taxable income in Dafater.
employee_name	Employee Name	Data		-	Full name of employee for reporting and verification.
amended_from	Amended From	Link		Employee Other Income	Original record amended to create this revised income entry.
company	Company	Link	✓	Company	Company under which the employee other income is recorded.
payroll_period	Payroll Period	Link	✓	Payroll Period	Payroll period during which the other income applies.
source	Source	Data		-	Description of income source, bonus, incentive, or allowance.
amount	Amount	Currency	✓	Company:company:default_currency	Amount of other income payable to the employee.

Permissions

Role	Read	Write	Create	Delete	Submit	Cancel
Employee	✓	✓	✓	✓	✓	✓
HR Manager	✓	✓	✓	✓	✓	✓
HR User	✓	✓	✓	✓	✓	✓

Related DocTypes

DocType	Relationship	Module
Company	Links to	Setup
Employee	Links to	Setup
Employee Other Income	Links to	Payroll
Payroll Period	Links to	Payroll