Setting up payroll admin in Xero is a straightforward process that allows you to manage your employee information, pay runs, and reporting.
1. Navigate to the Payroll Menu
- Log in to your Xero account.
- Click on the Payroll menu.
- Select Payroll Settings.
2. Set Up Your Organization
- Enter your organization's details, including legal name, address, and tax information.
- Choose your payroll frequency (weekly, fortnightly, or monthly).
- Specify the pay day for your employees.
3. Add Employees
- Click on Employees from the Payroll menu.
- Select Add Employee.
- Enter the employee's personal and employment details, such as name, address, start date, and tax file number (TFN).
- Choose the employee's pay type (salary or hourly).
- Select the appropriate pay rate and superannuation details.
4. Configure Pay Items
- Click on Pay Items from the Payroll menu.
- Select Add Pay Item.
- Create pay items for different types of earnings, deductions, and reimbursements.
- Assign these pay items to your employees.
5. Set Up Superannuation
- Click on Superannuation from the Payroll menu.
- Select Add Fund.
- Add the superannuation funds your employees are enrolled in.
- Link the funds to your employees.
6. Configure Payroll Settings
- Under the Payroll Settings menu, you can customize various settings:
- Payment Methods: Choose how you want to pay your employees (bank transfer, cheque, etc.).
- Tax Settings: Specify your tax settings, including the tax year and tax rates.
- Reporting: Customize your payroll reports, including payslips and summaries.
7. Run Your First Pay Run
- Once you have set up your payroll admin, you can create your first pay run.
- Click on Pay Runs from the Payroll menu.
- Select Add Pay Run.
- Choose the pay period and enter the required information, such as hours worked and any deductions.
- Review and submit the pay run.
By following these steps, you can successfully set up payroll admin in Xero and manage your employee payments efficiently.
