Add an employee to payroll
Set up an employee with the basic information needed to pay them including their bank account, pay calendar, super membership, and tax information. You can also give them authority to approve leave or timesheets.
Before you start
Gather the following information:
- Name and date of birth
- Address and phone number
- Start date, salary information and pay frequency
- Bank account details
- The tax file number declaration
Allow 5 to 10 minutes to add an employee to payroll, depending on the amount of information you choose to include.
Create a new employee in payroll
- Under Payroll, select Employees.
- Click Add Employee.
Enter information in the mandatory fields:
- Date of Birth
- Contact information
- Click Save.
If we identify any suspicious or unusual login activity, Xero hides sensitive employee information such as tax file number (TFN) and date of birth.
We'll also block lodgements and declarations submitted to the ATO using this information. You will receive an email from Xero notifying you of the suspicious login.
Add employment and super details
- Select the Employment tab.
- Enter the employee's start date.
- Select a pay calendar from the Pay Calendar list.
- (Optional) Select the employee's holiday group and employee group.
- Select the hours type for the employee from the Ordinary Earnings Rate list.
- (Optional) If the employee has the authority to approve leave or timesheets, select the relevant checkbox(s):
- Approve Timesheets
- Approve Leave
- Click Add a super membership. Select the employee’s Fund and enter their Employee Number.
- Click OK and then click Save.
Add tax information
- Select the Taxes tab.
- Add the employee Tax File Number (TFN) or TFN Exemption.
- Select the employee's Employment Basis and Residency Status.
- Select or unselect any special TFN conditions for the employee.
- Click File Now to submit or Save Only if you want to file with the ATO at a later time.
Add the employee’s bank account details
- Select the Bank Accounts tab.
- Enter the employee's bank account details, including the statement text that should appear in the account.
- (Optional) Add Another Bank Account if the employee wants to split their pay into multiple accounts.
- Click Save.
You’ve completed setting up an employee with the basic information needed for payroll.
(Optional) Additional employee setup
- Set up an employee’s leave entitlements.
- If you’ve paid an employee this financial year outside of payroll in Xero enter the employee's opening balances.
- Set up your employee with a standard pay template for recurring payments or deductions.