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
- Go to Settings, then click General Settings.
- Under Features, click Payroll Settings.
On the Organisation tab, select your payroll accounts.
- (Optional) Under Payroll Payments & Tracking, add your BACS Service User Number (SUN).
- (Optional) Assign tracking categories under Employee Groups if you are tracking payments.
- Click Save.