Pay employees (using Xero's Pay Run feature)

Pay employees individually or use the pay run batch payment feature to pay multiple employees.

Before you start

Make sure you've:

Pay employees individually

  1. In the Accounts menu, select Pay Run.
  2. Open the pay run you want to make payments from.
  3. Click on the amount in the line next to the employee you want to pay. This opens their payslip.
  4. Complete the fields in Make a payment.

    The amount can be all or part of the payslip total. You cannot use Xero's Pay Run feature to make cheque payments to your employees.

  5. Click Add Payment.

Once a pay is fully processed, the status of the payslips will change from Awaiting Payment to Paid. If only partly paid, they will remain as Awaiting Payment.

The pay run status will only change to Paid once all the payslips within it have been paid.

Pay multiple employees using batch payments

  1. From the Accounts menu, click Pay Run.
  2. Open the pay run you want to make payments from.
  3. Click Batch Pay Employees.
  4. Enter the Payment Date and the Bank Account you will make the payments from.
  5. (Optional) Update the Details field. This defaults to ‘Wages’.
  6. You can only batch pay employees within Pay Run, not other pay run bills.
  7. (Optional) Update payment lines for individual employees including their Bank Account, Details, and Payment amount, which can be all or part of the total due in that pay run.
  8. Click Make Payments.

    You're only able to reconcile a Pay Run batch payment with one bank statement line. If you have multiple bank statement lines to reconcile with the batch payment, you'll need to delete the batch payment and use Find and Match to reconcile.

Xero will confirm your batch payment has been created. You have a few choices at this point. You can:

  • Click the Image of the file icon. to add files to this pay run, such as employee documents or agreements.
  • Click Export Batch File to create a CSV version of the batch payments.
  • Click Print Batch File to print a PDF version of the batch payments.
  • Under the Options menu:
    • Click Mark as Reconciled.

      It is recommended that you only mark as reconciled in cases where the original bank transaction data cannot be imported from the bank.

    • Click Edit Batch to return the batch payments to draft status and update further.
    • Click Remove & Redo to cancel the batch payments.

Once payslips are paid, their status will change from Awaiting Payment to Paid. Next, you may want to email or print payslips if you haven't already.