Prepare for payroll in Xero
Collect all your organisation and employee information, then get Payroll Admin access before you set up payroll in Xero.
Use this checklist to make sure your organisation is ready to use payroll in Xero.
- Check your pricing plan
- Collect organisation's payroll information
- Collect your employee's payroll information
- Get Payroll Admin access
Check your pricing plan
Make sure you've added payroll to your pricing plan.
Pricing plans (xero.com website)
Collect your organisation's payroll information
Required organisation information
- Opening balance date
- Decide which is the first full month you'll use Payroll in Xero. This will be the first month you can access Taxes & Filings.
- Payroll accounts
- The bank account you'll use to pay employees
- Organisation's wages payable and wages expense accounts
- PAYE liability account
- Inland Revenue
- Employer IRD number
- Employer company size
- Pay calendars
- Pay period frequency (Weekly, Fortnightly, Half-Monthly, Four Weekly, Monthly)
- Pay items
- Earnings, leave, reimbursements, deductions, statutory, and superannuation (KiwiSaver) that make up your employees' pay
- Expense or liability account for each pay item
- (Optional) Public holidays—to pay employees for public holidays
- (Optional) Company Logo—to upload and show on payslips
- (Optional) Xero tracking categories—if you want to produce payroll reports based on employee groups
Collect your employee's payroll information
- Employee personal and contact details
- Contact information and home address
- Date of Birth
- Email address—to invite them into Xero's My Payroll to view their pay information, and submit leave requests and timesheets
- (Optional) Emergency contact information
- Employment details
- Start date
- Payroll calendar the employee belongs to
- Salary or wage details
- Tax information
- IRD number
- Tax Code
- KiwiSaver contribution rates
- ESCT rate
- Leave and accrual details
- Employee bank account(s)
- Opening balances as at the opening balance date
- Required if you paid employees in the 12 months before switching to payroll in Xero
- (Optional) Pay template information for each employee—if any employee has recurring pay items for each pay run, such as statutory deductions
Get Payroll Admin access
If you're responsible for setting up payroll in Xero, you'll need Payroll Admin access. Get Payroll Admin access from the Subscriber (the one who set up the Xero account) or a person with Manage Users and Payroll Admin permissions.
To set up an existing Xero user with Payroll Admin access:
- Go to Settings, then click General Settings.
- Under Organisation, click Users.
- Click the name of the person responsible for managing payroll.
- Select the Payroll Admin checkbox.
- Click Save.
If you're responsible for managing payroll, but aren't set up in Xero, you'll need to get added as a new user with Payroll Admin access.