Update incomplete pay items (for Xero's Pay Run feature)

When you have pay items that aren't assigned to an account from your chart of accounts or don't have a contact to pay, Xero will ask you to update them. This may happen when you create your first pay run, first go to Pay Items for the first time, or add later pay runs.

  1. Go to Accounts, then click Pay Run.

  2. Under Code, enter an account for Wages Payable if Xero asks you to. To see if your account code is available or not, tab or click outside of the account code field.

    Image showing the account code field the first time you enter a pay run.

    The Wages Payable account holds your payroll liability. Contact your accountant or bookkeeper if you need help with this, or have an existing account for your payroll liability.

  3. Click Save and Continue.

  4. In the Account field select a contact for default pay items, or click Add if Xero asks you to. If you add a new Account Type, make sure you select Expense.

    Xero only displays expense type accounts when you select the account to apply to the pay item.

  5. Under Contact to Pay, enter a contact for default pay items.

  6. (Optional) Select a Payment Frequency and Next Payment date.

  7. Click Save and Continue.

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