Add an employee to payroll in Xero

When you first set up payroll in Xero or when new people start, you need to add your employees before you can enter their other details.

Before you start

Enter personal details and employment information

  1. In the Payroll menu, select Employees.
  2. Click Add Employee.
  3. Enter the basic information about the employee.
  4. (Optional) Enter an Employee Number.
  5. If the employee has the authority to approve time off, select the Approve Time Off checkbox.
  6. Click Save.
  7. Click the Employment tab.
  8. Enter the employee's National Insurance rate and category (GOV.UK website).
  9. Select the employee's start date. The start date sets the anniversary date for the employee's time off accruals.
  10. Select a pay calendar from the Pay Calendar list.
  11. (Optional) Select the employee's holiday group and employee group.
  12. Select if the employee is paid intermittently.
  13. Click Save.
Xero hides sensitive employee information like an employee's date of birth, when there’s a login from an unusual location or device. You will receive an email from Xero notifying you of the suspicious login.

Enter an employee's salary and wages details

  1. From the Employment tab, click Add Salary & Wages.
  2. Enter the employee's salary or wage details.
  3. Set an Effective Date.
  4. Click Add.
  5. Click Save.

Once you've added an employee, you can customise their details, set up their bank accounts, set up a pay template, and enter any opening balances such as time off.

If this is the first time you have added the employee, you should now add the employee's tax information.