Select your payroll accounts

Choose your payroll bank account, and select where you record your payroll expenses and liabilities so your payroll is accounted for.

How it works

  • Xero records your payroll transactions in the general ledger making it easier to reconcile your payroll.
  • You can use the default Xero liability and expense accounts or choose your own. If you're unsure about which account to select, speak with your accountant or bookkeeper.
  • You can add your organisation's Bacs service user number (SUN) if you are paying your employees electronically using Bacs.

Set up payroll accounts and BACS for your organisation

  1. Go to Settings, then click General Settings.
  2. Under Features, click Payroll Settings.
  3. On the Organisation tab, select your payroll accounts.

    Payroll accounts

    If the account you're looking for isn't available, add it to your chart of accounts or bank accounts.
  4. (Optional) Under Payroll Payments & Tracking, add your BACS Service User Number (SUN).
  5. (Optional) Assign tracking categories under Employee Groups if you are tracking payments.
  6. Click Save.

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