Use pay items to set up the earnings, deductions, reimbursements, and leave you use for payroll. You can then add recurring pay items to an employee's pay. For example, if your organisation has a social club, set up a deduction so you can add it to your employees pay run. Or you could adjust their pay for a single pay period for a one-time-only pay item like a bonus or commission.
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 add your own and assign them to an account in your general ledger.