Process a pay run
Create a draft pay run, make any adjustments to your employees' pay, then post the pay run in Xero to pay your employees.
Before you start
- Set up payroll, add employees and their opening balances.
- Decide how you will pay your employees and add their bank account information if you're paying your employees with BACS.
- 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.
- Select a pay period from the menu.
- Click Process Pay Run.
- Check and approve any draft timesheets.
- (Optional) In the Payslip Message field, enter a message to show at the bottom of all payslips.
Adjust an employee's pay
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 New [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 leave rate. Otherwise, click Use Average Daily Pay.
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)
- (Optional) Click the Memo button and add a personal message on the employee's payslip.
- Click Save and then click Close.
Post a pay run
- From the draft pay run, click Post.
- Click Post 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.