Payroll end of financial year troubleshooting

If you're having trouble using Xero payroll for end of financial year, use this page to quick answers to your questions.

Can I include March’s wages that are paid in April, in March's ir-Filing?


Ir-filings are based on the payment date of the pay run, and not the pay period end date. This could mean that some of March’s wages aren't paid until April, and then due in April’s ir-filings. If you’d like these amounts to show as part of the current FY expense, you can use manual journals.

If you’d like March’s wages paid in April to be due and showing as March PAYE (and to be filed and paid as March PAYE), then when the pay run is in a draft status, you can change the payment date to a payment date in March. Please note that you can only change the Payment Date when the pay run is in draft status.

How can I see the employees YTD employee earnings balances if I just started using Xero?

If you started mid way through the financial year and your employees are asking for their YTD earnings, you can combine your employee's YTD Earnings from Xero and your previous payroll software to give them their earnings summary.

Does Xero update with the latest legislation changes?


Release notes: updates to Xero on 2 February 2016

Do I create a new pay calendar for the new financial year?

No, all pay calendars will continue according to the frequency of the pay periods set up.

Will the payslip YTD earnings reset for the new financial year?

Yes, the YTD earnings that appear on employees payslips will reset to zero as of the first pay run processed in the new financial year.

Will Xero automatically update employees who are currently on the minimum wage to the new rate on 1 April 2016?

No, users will have to manually update this by adding the new salary & wages details with an Effective Date of 1 April 2016.

Change an employee's salary and wages details

If 1 April 2016 is in the middle of a pay period, two lines with the different rates will appear for the total amount of hours on the payslip. The hours on each line can then be edited to show the correct hours at each rate for the pay period.