Add or update an employee bank account

Add up to four bank accounts to pay an employee's salary directly into their bank account with direct deposit. Or, change an employee direct deposit bank account, or remove it from Xero completely. Make sure you process payroll at least five business days before your pay date to pay employees through direct deposit.

Payroll administrators get an email when an employee's bank account adds or updates.

Add employee's bank account for direct deposit

  1. In the Payroll menu, select Employees.
  2. Click on the employee to open their details.
  3. Click the Payment Method tab.
  4. Click Direct Deposit.
  5. Enter all the details of the employee's bank account.

    If the employee has more than one bank account, click Add Another Bank Account and enter the details, including the amounts that go into each bank account.

  6. Click Save.

Update employee bank account

  1. In the Payroll menu, select Employees.
  2. Click on the employee to open their details.
  3. Click the Payment Method tab.
  4. Click Direct Deposit.
  5. Change or remove the employee's bank account information.

    If an employee is included in a pay run, changes to their Bank Accounts recalculate their existing Paystub.

  6. Click Save.