Process a pay run

Create a scheduled pay run then if you need to, adjust your employees’ pay. When you're ready to pay your employees, complete the pay run to pay them in Xero and calculate your taxes. You can't delete the pay run once it's complete.

Before you start

Create a draft pay run

  1. In the Payroll menu, select Pay Runs.
  2. Click Add Pay Run.
  3. Select a pay period and click Next.
  4. (Optional) Click Add a payslip message to enter a message to show at the bottom of all payslips.

Adjust an employee's pay

Add, edit or remove any additional earnings, deductions, taxes, reimbursements, superannuation or leave in the pay run.

If an employee has started midway through the pay period, you'll need to manually edit their hours in the draft pay run before it's posted.
  1. From a draft pay run, click the employee who needs a pay adjustment.
  2. To add earnings or deductions, click Add [pay item] line and add the relevant details.

    You can also edit the details of existing pay items or remove them.

  3. Click Save and then click Close.
Your draft is now complete.

Post a pay run

  1. From the draft pay run, click Post Pay Run.
  2. Click Yes to confirm your pay run.
If you see either of these messages:

After you've posted a pay run you'll need to:

  1. Pay your employees and send payslips
  2. Reconcile the payments with your wages account in the general ledger. You can view the Journal Report by searching for the pay run payment date.