Add an employee's tax information

Even if your employee hasn't given you their P45, you can start entering their details into payroll in Xero to set them up. You can add their P45 later so the correct tax and student loan obligations (if applicable) are withheld from their pay.

  1. In the Payroll menu, select Employees.
  2. Click the employee's name to open their details.
  3. Click the Taxes tab.
  4. Enter the employee's tax information. This includes their Starter Type and Starter Declaration.
  5. (Optional) Enter the Tax Code and Tax Calculation Method recorded in the employee's P45.

    If the employee hasn't given you their P45, Xero uses the Starter Declaration to fill in the correct emergency tax code to make the correct contribution.

  6. Select the Eligible for Automatic enrolment? checkbox if the employee is already enrolled in a workplace pension.
  7. (Optional) Set employee as a director.
  8. Under Does the employee have student loans?, select the button that fits:
    • No.
    • Yes - and then select a Student Loan Type.
  9. Click Continue.