Set up pay items (for Xero's Pay Run feature)

Set up pay items in Xero so they are ready for you to add them to your employee profiles and use them when you are processing a pay run.

  1. In the Accounts menu, select Pay Run.
  2. Click Manage Pay Items.
  3. Click New Pay Item.
  4. Enter a unique pay item Name, such as Travel Allowance or Time and a half.
  5. (Optional) Enter a Description.
  6. Select a Pay/Tax Type and secondary fields when they apply.
  7. (Optional) Select the Show as default pay item for all employees checkbox to apply this pay item as the default for all employees.

    For any pay items that won’t be physically paid, or offset against another account, you can enable payments in your chart of accounts to reconcile any outstanding liability.

  8. Select Save.

    Image showing new pay item window with Name and Description fields.

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