How Company Employees Can Start a Side Job | Work Rules, Taxes, and Recommended Jobs

Have you felt, "Can company employees even start a side job?" or "I can't take the first step because I'm worried about work rules and taxes"? When a company employee starts a side job, it's important to correctly grasp your workplace's rules and the tax procedures, even more than earning income. This article clearly explains how company employees can start a side job, from three perspectives: checking the work rules, the basics of taxes, and recommended job types, in a way that's easy to understand even for those just starting out.

Can Company Employees Do Side Jobs? The Basics to Know First

To put the conclusion first, most company employees can start a side job. The government is also encouraging side jobs and dual work as part of work-style reform, and the number of companies that permit side jobs is increasing. However, since some workplaces restrict or prohibit side jobs, checking your own company's rules before starting is essential.

Beyond adding to your main income, a company employee's side job has the following benefits.

• Having an income source beyond your main job, preparing for household finances and future anxieties
• Acquiring new skills and experience that also help your main job and career
• Expanding your network, increasing future options like independence and career change
• Being able to test small, so you can take on the challenge with reduced risk

[Most Important] Check the Work Rules Before Starting a Side Job

When a company employee starts a side job, the first thing you should always do is check the work rules. Skipping this can lead to trouble down the line.

Where Should You Look in the Work Rules?

Check the items related to "disciplinary conduct" and "dual work / side jobs" in the work rules. Whether a side job is by "permission," by "notification," or "prohibited" changes the response you should take. If you can't find any mention, checking with HR or general affairs is the surest way.

When a Side Job Is by "Permission" or "Notification"

At many companies, side jobs are allowed if you submit an application or notification. To continue without guilt, it's reassuring to formally apply in line with the rules. When applying, it goes smoothly if you convey that it's within a range that won't interfere with your main job.

Points to Note When a Side Job Is "Prohibited"

If side jobs are prohibited in the work rules, doing one without permission may become subject to disciplinary action. First check the company's policy and consult as needed. Note that public servants are restricted from side jobs by law in principle, so particular caution is required.

The Basics of Company Employee Side Jobs and Taxes

Once you earn income from a side job, you need to be aware of tax procedures yourself as a company employee. Here, let's grasp the overall picture (for specific procedures, check the latest information with a tax office or tax accountant).

A Tax Return Is Needed If Side-Job Income Exceeds 200,000 Yen a Year

For company employees, it's basic that a tax return becomes necessary when side-job income (the amount after subtracting expenses from revenue) exceeds 200,000 yen a year. Since there are cases where a residential tax declaration is needed even under 200,000 yen, keep records of income and expenses regularly.

Managing Expenses and Books

Communication costs and supplies spent on your side job can sometimes be recorded as expenses. Keeping receipts and recording income and expenses makes the tax return smoother and helps with calculating the tax you owe.

Your Side Job May Become Known to the Company Through Residential Tax

As side-job income increases, the residential tax amount changes, and the company may learn of the side job from that notification. Regarding the handling of residential tax when you have reasons not to want the company to know, our site also explains it in detail in a related article. First, checking your workplace's rules comes first.

Recommended Side-Job Types for Company Employees

Side jobs for company employees are suited to work that's easy to balance with your main job and can progress in spare moments. We introduce representative job types by category.

Stock-Type That Builds Skills

Web writing, web design, video editing, programming, and the like sharpen your skills the more you continue, leading to higher rates and career growth. They're recommended for company employees who also want to keep future independence or a career change in view.

Easy Type You Can Do in Spare Moments

Data entry, survey monitors, transcription, and the like are easy to start without special skills, and you can work on them in spare moments on weekday evenings or holidays. They suit the entry point for those who first want to get used to side jobs.

Type That Uses Your Main Job's Experience and Knowledge

Online secretary work, consulting, skill sales, and the like let you use the experience cultivated in your main job. The more specialized, the easier it is to aim for high rates, turning your strength as a company employee directly into income.

Steps for a Company Employee to Start a Side Job

When you actually start a side job, proceeding with the following steps makes failure less likely.

1. Check the work rules, and apply or notify the company if needed
2. Decide your available time and target amount, setting a manageable range
3. Choose the type of side job that suits you (stock-type, easy-type, etc.)
4. Apply to your first project on crowdsourcing or job sites
5. Build a track record while recording income and expenses to prepare for a tax return

Points to Note So Company Employees Don't Fail at Side Jobs

• Do it within a range that won't interfere with your main job, prioritizing health management
• Always check the work rules and tax rules in advance
• Avoid suspicious projects promising "easy high income" and projects that demand fees upfront
• Don't try to earn big from the start; start small and expand little by little

Frequently Asked Questions About Company Employee Side Jobs

Q. Can I do a side job even at a company that prohibits them?

If prohibited in the work rules, an unauthorized side job carries the risk of trouble and disciplinary action. First check the company's policy and consult as needed. Checking whether there's a range that doesn't count as a "side job" under the work rules, such as asset management, is also one approach.

Q. From how much income does a company employee's side job require a tax return?

Generally, a tax return is needed when side-job income exceeds 200,000 yen a year. Since a residential tax declaration may be needed even under 200,000 yen, keep records of income and expenses, and check the latest information with a tax office or tax accountant for anything unclear.

Q. What kind of side jobs suit company employees?

Side jobs that are easy to balance with your main job and can progress in spare moments are suitable. If you want to grow skills, stock-type work like web writing and video editing; if you first want to get used to it, easy-type work like data entry is recommended.

Summary: Grasp the Work Rules and Taxes and Start a Company Employee Side Job

When a company employee starts a side job, it's important to first check the work rules and grasp the basics of taxes (such as a tax return when exceeding 200,000 yen a year). On that basis, if you choose a side job that's easy to balance with your main job, you can grow income and skills while reducing risk. Once you correctly understand the rules, first choose one side job that suits you and take a step to start small.