Switch to Payroll from Pay Run

If you've been using Xero's Pay Run, switch to payroll in Xero to make it easy to process pay runs and manage leave. You'll need to set up employer and employee information before you can begin processing pays in Payroll. Follow the steps below to get started.

  1. Go to Payroll Settings to begin.
  2. Set up your employee information. If you need to, you can still access employee contact details from within Pay Run in Contacts > Employees.
    Add your employees to Xero payroll
  3. If you start using Payroll mid-way through a financial year, you will need to enter opening balances to enable the production of payment summaries for the entire financial year.
    Set payroll opening balances
    You can get your gross wages, PAYG and superannuation opening balances from the Pay Run by Employee report.
    Pay Run by Employee report
      • Add an ordinary earnings line and enter the Wages total from the Pay Run by Employee report
      • In the 'Total tax amount' field enter the Taxes total from your Pay Run by Employee report
      • Add Superannuation line and enter the Employer Contributions total from the Pay Run by Employee report

    Enter leave liability opening balances. This information is not currently contained within Pay Run.

      • Add leave line, select the appropriate leave type and enter the number of hours.

You're done. You can now begin to take advantage of the additional benefits Payroll brings to you.