Use pay items to set up the earnings, deductions, reimbursements, and leave you use for payroll. This way, you can add recurring pay items to an employee's pay, or adjust their pay for a single pay period for a one-time-only pay item like a bonus.
Pay items also help you customise and track the way you pay each employee. Xero provides default pay items that you can choose from. You can also add your own and assign them to an account in your general ledger.