Set up or change an employee's payslip

Find out how Xero calculates annual salary, how to view or edit employee earnings rates or hours, what items show on payslips and how to add a message to all payslips.

How Xero calculates annual salary

Xero calculates annual salary based on the ordinary earnings rate you set on the Employment tab for each employee:

  • If you've set up a pay template, Xero shows the employee's annual salary using the ordinary earnings rate on their pay template.
  • If you haven't set up a pay template or entered hours as zero, the payslip shows an annual salary based on the pay run you are working on.

Enter ordinary earnings rate or hours

Enter an employee's ordinary earnings rate

  1. In the Payroll menu, select Employees.
  2. Click the employee to show their details.
  3. Click the Employment tab.
  4. From the Ordinary Earnings Rate field, select the usual hours for the employee.

Enter an employee's ordinary hours

  1. In the Payroll menu, select Employees.
  2. Click the employee to show their details.
  3. Click the Pay Template tab.
  4. Enter the minimum hours that the employee is required to work for their ordinary hours.

What a payslip displays

Each payslip shows your employee their totals for this pay period and year to date for:

  • Salary and rates for Ordinary Hours and Other Previous Earnings
  • Tax and Superannuation Guarantee Contributions

as well as:

  • Your company address
  • Pay frequency and annual salary
  • Leave balance with accrued and used leave totals
  • Payment details including the reference the employee will see in their bank account.

Add a message to payslips

Before you post a pay run, add a message to show on all employee payslips.

  1. In the Payroll menu, select Pay Runs.
  2. Select the period you want to add a payslip message for.
  3. Click Add a payslip message.
  4. Enter the message to show at the bottom of all PDF payslips.