Process a pay run
Create a scheduled pay run then if you need to, adjust your employees’ pay. When you're ready to pay your employees, complete the pay run to pay them in Xero and calculate your taxes. You can't delete the pay run once it's complete.
Before you start
- Set up payroll, add employees and their opening balances.
- Add a pay calendar and set up employee pay templates. Pay schedules let you add a pay run to a period in the pay period cycle. Pay templates contain the employee's base pay details. Without a template, you’ll need to add the employee’s pay details manually.
- Decide how you'll pay your employees and add their bank account information.
- Approve all employee leave requests and timesheets so they're included in the pay run.
Create a draft pay run
- In the Payroll menu, select Pay Runs.
- From New Pay Run, select a pay period.
- Click Process Pay Run.
- (Optional) In the Payslip Message field, enter a message to show at the bottom of all payslips.
Adjust an employee's pay and post the pay run
Adjust an employee's earnings, deductions, taxes, reimbursements, superannuation and leave before posting a pay run. For example, you can add to an employee's earnings by giving them a bonus or you can manually adjust their employee taxes.
- From a draft pay run, click the employee who needs a pay adjustment.
- Click Add [pay item] for the adjustment type you want.
- Enter an amount to add or deduct for the adjustment.
If an employee has taken leave during the pay run period and you know what they would have earned if they had worked, you can adjust their Relevant Daily Pay rate. Otherwise, click Use Average Daily Pay rate.
Sick leave, bereavement leave, public holidays, alternative holidays and employment-related education leave is initially calculated on RDP based on the employee's base rate. The rates for these can be edited, but you can't edit the ADP rate.
Payment for other holidays and leave (Employment New Zealand website)
- Click Save & Close.
- (Optional) Click the Memo button to add a personal message to the employee’s payslip.
- Click Post. When prompted, click Post again to confirm your pay run.
After you've posted a pay run, you'll need to pay your employees electronically, and then reconcile the payment with your wages payable account in the general ledger.
View the Journal Report by searching for the pay run payment date.