Process a pay run
Create a draft pay run, make any adjustments to your employees' pay, then post the pay run in Xero to pay your employees.
Before you start
- Set up payroll, added employees, entered opening balances, and determined employee payment methods.
- Approved all employee leave requests and timesheets so they're included in the pay run.
Before you create a draft pay run, make sure you've:
Create a draft pay run
- Go to Payroll, then click Pay Runs.
- Click Add Pay Run.
- Select a pay period.
- Click Next.
- (Optional) Click Add a payslip message and enter a message to show at the bottom of all payslips.
Edit an employee's payslip in a pay run
Add, edit or remove any earnings, deductions, taxes, reimbursements, superannuation or leave before posting a pay run. For example, you can add to an employee's earnings by giving them a bonus or you can manually adjust their employee taxes.
- From a draft pay run, select an employee.
From the employee's draft payslip you can:
- Create a new pay item by clicking Add [pay item] line and adding the relevant details.
- Edit the details of some pay items.
- Remove some pay items.
- Click Save and then click Close.
Post a pay run
From the draft pay run, click Post Pay Run.
If you get the message 'employee limit exceeded', you may need to change your Xero pricing plan.
- Click Yes to confirm your pay run.
After you've posted a pay run you'll need to pay your employees electronically, and then reconcile the payment with your wages account in the general ledger. You can view the Journal Report by searching for the pay run payment date.