Prepare and distribute employee payment summaries

Xero automatically prepares and allocates your payroll data to your employee's individual non-business payment summaries. Review these amounts before you finalise them and send off your annual reports to the ATO.

Manual payment summaries need to be submitted outside of Xero for employees with payments for employment termination payments (ETP) or business and personal services income (Labour Hire). These payments aren’t processed through the payroll and not automatically included.

Manually produce payment summaries

  1. Go to Payroll, click Employees, then Payment Summaries.
  2. Check that your organisation name, ABN and postal address information is correct. You can update this information in Organisation Settings.
  3. Enter the signatory name and add the contact number, then click Confirm and Continue.
  4. Select the Financial Year Ending.
  5. Review gross payments, PAYG, allowances, workplace giving, union/association fees, RESC and Lump Sum amounts allocated based on your payroll data.
  6. Identify and fix any payment summary errors.
  7. Enter any RFBA from your fringe benefits tax return to each employee where needed.
  8. Enter any additional Lump Sum amounts paid. This will reduce your employee’s gross wages to ensure the amounts aren't duplicated.
  9. Select all employees.
  10. Click Publish.
Check the status column for all employees. If any payment summaries have not published identify and fix the errors, then republish.

Once you have published all the payment summaries, you need to send them to your employees. Use My Payroll to send them via email if you invited your employees to My Payroll, or generate a PDF for printing.