Process a pay run (using Xero's Pay Run feature)

Set up your employees and pay items so that you can process a pay run using Xero’s Pay Run feature to pay employees in your organisation.

Before you start

Process a pay run

  1. In the Accounts menu, select Pay Run.
  2. If this is your first pay run:
    • Enter an account code for the new system account used to record employee payslips and wage payable invoices.
    • Choose an account and contact for each pay item. Xero will list items that require you to update incomplete pay items.
  3. Click New Pay Run.
  4. Set the Pay Frequency, date period covered by pay run, and the Payment date.

    After you've processed your first pay run, you can choose between starting from scratch or you can copy a previous pay run.

  5. Click Next.
  6. Select employees to include in the pay run.

    It's up to you to calculate how much you pay your employees including any relevant employment and tax legislation. Contact your accountant or bookkeeper if you need help.

  7. (Optional) Click Add Employee to add another employee to the pay run.

  8. Click into Qty and Rate fields for each employee to enter employee payment amounts and quantities. Xero automatically updates totals based on this information.
  9. (Optional) Add additional benefits or deductions to any employee by adding a pay item to a draft pay run.
  10. Click Next.
  11. Review your draft pay run.
  12. (Optional) Add a note to go on every employee's payslip in the Payslip notes field.
  13. (Optional) Click Show employee’s tax number on payslips checkbox.
  14. Click Save to continue editing the pay run in draft, or click Approve.
Once a Pay Run has been approved, you can't change the date. However you can copy the Pay Run and enter a new date, then void the incorrect Pay Run.

What's next

Batch pay employees or send payslips

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