Choose how to pay an employee

Choose how you pay each employee by selecting their payment method. If you pay electronically, you'll need to register for direct deposit before running payroll.

If you're paying electronically, you'll need to register for direct deposit before running payroll. This can take up to five days, so make sure you register before you run payroll.

Select a payment method for an employee

  1. In the Payroll menu, select Employees.
  2. Click the employee's name to open their details.
  3. Click the Payment Method tab.
  4. Select a payment method.
    • Use Check if you pay by check printed with Xero.
    • Use Manual if you pay in cash, or checks written outside of Xero.
    • Use Direct Deposit if you pay electronically.
  5. If you select direct deposit, enter an employee’s bank account details.

    You can add up to four US bank accounts by clicking Add Another Bank Account

  6. Click Save.
If an employee has historical pay and tax payment information because you're switching from another payroll system, you'll need to add their year-to-date pay history before you run payroll.