Deposit and file payroll taxes electronically

Deposit your federal and state payroll taxes, and file your payroll tax forms electronically.

How it works

Electronic tax payments require you to set the due date two business days prior to the payment due date. We can then verify if your state and federal tax payments clear before the due date. You also need to set your e-file due date two business days prior to the file due date.

The following states and forms require the due date to be five business days prior instead of two.

  • Texas SUI payment and C-3 filing: Quarterly
  • Utah Income Tax Withholding: Monthly, quarterly, and annually
  • New Jersey Income Tax Withholding: Monthly (weekly remains two business days)

Taxes and filings emails are sent to the email address entered in the Contact Details email address field of the Taxes and Filings tab in Payroll Settings. Only one email address can be entered.

Before you start

E-pay state and federal taxes

  1. In the Payroll menu, select Taxes & Filings.
  2. Click the tax you want to pay.

    Image of payroll taxes and name of Federal Unemployment Taxes to pay.

  3. In the Payment Method list, select Electronic Payment.
  4. Make sure the form name, payment quarter, and due date are correct.
  5. (If required) Select the Payment Date Xero sends payment to the tax authority.

    This option isn't available for all state taxes.

  6. Click Pay [Total Payment Due] Electronically.

The tax payment status is Scheduled until the due date, then it changes to Paid.

E-file tax forms

  1. In the Payroll menu, select Taxes & Filings.
  2. Click the tax form you want to pay.
  3. Make sure the name, period the form applies to, and due date are correct.
  4. Click File Form , then click Confirm.
After you file, Xero saves and locks your tax filing information.