- How To Do Payroll In Xero | Liston Newton Advisory
Quickly and easily view employee payslips at any time, from anywhere. For a complete online payroll solution, choose one of the third-party payroll apps that integrate with Xero. Access all Xero features for 30 days, then decide which plan best suits your business.
Made by the Forge use Xero to make quick decisions. Pay bills. Send invoices. Simple online pay runs Manually calculate deductions and record leave, then use Xero to pay a few employees and keep secure records. Pay into bank accounts Pay employees manually or upload a batch payment file to your bank.
Connect a payroll app For a more powerful payroll solution, choose a third-party payroll app that integrates with Xero. More about pay runs Get pay run reports Run reports to review your pay runs. View a breakdown of the amount paid to all, or individual employees, in a selected pay period See how to run pay run reports. See how to add an employee for pay runs. Pay templates contain the employee's base pay details. If you want to change the dates of the pay run , you'll need to add a new pay calendar before you process your pay run.
You can also physically pay employees by cheque or using another method outside of Xero. Approve all employee time off requests and timesheets so they're included in the pay run. Once you process time off in a pay run, you can't change the time off type in the time off request. You can't delete the pay run once it's complete.
If you've set up your organisation to process payments using a BACS or Faster Payments file, pay your employees in bulk using online banking. In the Payroll menu, select Pay employees. Under New Pay Run , select a pay period. Click Process Pay Run. To claim for this tax year, select Yes, continue claiming xxx Employment Allowance , then choose your industry. Click Continue , then click Continue to draft.
Optional In the Payslip Message field, enter a message to show at the bottom of all payslips. Add a bonus, deduction or reimbursement, or include time off. You can also:. Adjust earnings or hours on an employee's payslip. Manually adjust tax for an employee's pay. If an employee's start date falls during a pay period, Xero will pro rata their pay based on the number of working days. From a draft pay run, click the employee who needs a pay adjustment. Click Add [pay item] for the adjustment type you want.
Optional Click the Memo button to add a personal message on the employee's payslip. Click Post. If you've set up automatic enrolment for your pension scheme, or upcoming re-enrolment date, we'll alert you in app if you need to enrol or re-enrol any employees before you complete the pay run. The following options can be completed in one pay run:.
Once you've updated these fields, click Confirm to post your pay run. When you post the pay run, Xero automatically submits RTI filings to report your employees' pay to the government. You can also post a pay run without employees in it to submit your filings to HMRC. Xero also calculates the amount of tax and national insurance that's due for each employee, and sends that information to HMRC in an Full Payment Submission.
To see your contributions to each employee's pension scheme and the amount you'll need to pay their pension provider, run a Pension Contribution report. If you've set up your organisation to process payments using a bank payments file and entered bank account details for your employees, download the payment file from Xero and import it into online banking to pay your employees.
Xero payroll process.Setting up online payroll with your bank
You want the perfect employee. They want the perfect employer. Find out how to write a job description that stands out. Now the applicants are lining up. So how do you sort through them all and select the best fit for your business?
Employee onboarding is more than orientation. Paying your employees right is essential. Your employees need support too. Employee evaluations help with that. Learn how to hire employees and how to handle the admin that goes with it. Fill out the form to receive this guide as a PDF. Privacy notice. Access all Xero features for 30 days, then decide which plan best suits your business.
If an employee's start date falls during a pay period, Xero will pro rata their pay based on the number of working days. From a draft pay run, click the employee who needs a pay adjustment.
Click Add [pay item] for the adjustment type you want. Optional Click the Memo button to add a personal message on the employee's payslip. Click Post. If you've set up automatic enrolment for your pension scheme, or upcoming re-enrolment date, we'll alert you in app if you need to enrol or re-enrol any employees before you complete the pay run.
The following options can be completed in one pay run:. Once you've updated these fields, click Confirm to post your pay run. When you post the pay run, Xero automatically submits RTI filings to report your employees' pay to the government. You can also post a pay run without employees in it to submit your filings to HMRC. Xero also calculates the amount of tax and national insurance that's due for each employee, and sends that information to HMRC in an Full Payment Submission.
To see your contributions to each employee's pension scheme and the amount you'll need to pay their pension provider, run a Pension Contribution report. If you've set up your organisation to process payments using a bank payments file and entered bank account details for your employees, download the payment file from Xero and import it into online banking to pay your employees.
A Faster Payments bank file allows you to submit and process payments on weekends and public holidays, with a relatively fast processing time of two days.
A BACS file can only be submitted between Monday to Friday, excluding public holidays, and takes three working days to process. Pay employees manually or upload a batch payment file to your bank. For a more powerful payroll solution, choose a third-party payroll app that integrates with Xero. Run reports to review your pay runs. View a breakdown of the amount paid to all, or individual employees, in a selected pay period.
Add employees as contacts in Xero, including information such as their wage rate, bank account details, tax number, email, and postal address. All personal information and pay details are protected with multiple layers of security. Payroll doesn't stand still. Linking your business to your bank.
How does it work? Your accounting software creates a payment file containing payment instructions in a form that your bank understands Log in to your online banking and upload the file Then simply confirm that you want to make the payments — and off they go.
Connect to your account. A bank connection makes it easier to do business. Choosing the right software. Support for bank feeds and account reconciliation: Ideally this should be automated, so you don't have to manually download the data from your bank account.
Support for payment data files: It should be possible to create standard format payment data files that you can upload to your bank. Accessibility: With online or cloud-based software you can access your accounts securely, whether you're in the office or elsewhere. It means you're not tied to one computer when you want to manage your online payroll.
Ease of use: Accounting can sometimes be complicated, but your accounting software should make life as simple as possible for you. Payroll features: You can't pay your employees automatically if your accounting software can't handle online payroll operations.
Scalability: As your business grows, so will your payroll — because you'll have more employees. You need to make sure your accounting software can handle this growth. Low maintenance: You won't want to have to keep applying upgrades and patches to your accounting software.
Ideally it should be cloud-based — that usually means the upgrades and backups happen automatically. Better online banking — six aspects to look for. Test and test, then test again. Bank integration simplifies payroll. Disclaimer Xero does not provide accounting, tax, business or legal advice. Start using Xero for free. Email address.
