Xero payroll settings

In Xero, go and select your company name  in the main menu > Select the settings option.

Within the organisation settings, you'll find the Payroll settings.

1. Set pay run Calendar in Xero

In the payroll settings page, under the Calendars tab, you need to set up how often you intend to run payroll, this is typically weekly or fortnightly. Click the add button and follow the prompts.

2. Add earnings rates/pay items to Xero

1. From within the payroll settings, the next step is to move on to the Pay Items tab.
   

Choose Payroll Settings > Pay Items 

1. The earnings rates should be set up to cover each of the different bands or groups of earning rates such as levels or skills, for example, Level 1, Level 2 etc or different roles and then break that down to describe days of the week and times in the day.
   

Example of some pay items for some organizations, might be  "Level1",  "Level 1 WeekDay" , "SAT Rate", "Sun Rate", "Ordinary Rate Week Day"...etc

1. With Pay items, you also can add pay items for the  Regular Time, Overtime, and Double Overtime (if you need that) & allowances

1. If you are unsure about Xero setup and pay items, please consult your finance department before proceeding. 
   

As Xero controls the pay rules and therefore the $dollar amount paid, this should be set up in Xero as what Xero calls Earnings Rates.             

Please note when creating an earning rate in XERO, and to sync ClickTime with Xero, make sure :

1.              "Rate Type"          =  Rates Per Unit
   
2.              "Type of Units" = Hours (capital H, no spaces after) 
   

                                                                               

                                                                           

Your earning rates in XERO might look like this:

Add Employee and set up their profile in Xero

If you don't yet have employees in Xero, you can add them by clicking the Add Employee button and following the steps.

Choose the Employment tab under the employee's profile:

1. Set The employee start date (this should be before their first pay run

2. Assign a pay calendar to the employee.       

    Employees in in Xero must be associated and assigned to a Payroll Calendar  in the

    employment tab of the employee's profile.

3. Assign the Earnings rate to the employee's employment profile                                                                                                                                                

      Select an earnings rate from those you configured from the dropdown menu in

      the ordinary earings rate field and click Save.

4. Configure the earnings rates in the Employee’s Pay Template

    In this step, Xero wants you to assign the relevant earnings rates and

    allowances for the employee.

    Click on the Employee's Pay Template tab and add all the earnings rates your

     employee will require using Add Earnings Line.