Payroll software that takes the stress out of payday
Payday shouldn't eat your afternoon. Manage Single Touch Payroll, super, PAYG and leave in one place, then get back to running your business.
Cloud payroll software that gives Australian Small Businesses time back
4 in 5 small businesses say Xero Payroll is easier than what they used before,* so you get to payday knowing your numbers are right and your team's paid on time. *Source: Survey conducted by Xero of 165 small businesses in the UK and Australia using Xero, October 2025.
Report to the ATO every payday
Xero sends salary, wages, PAYG and super to the ATO for you, so Single Touch Payroll Phase 2 is handled.
Automatic calculations, no guesswork
Tax, super and leave are worked out for you, reducing errors and saving you valuable time.
Let your team self-serve
With Xero Me, staff view payslips, book leave and log timesheets from their phones, without going through you.
Stay STP Phase 2 compliant every payday
Every payday, Xero lodges your salary, wages, PAYG and super with the ATO for you, so reporting takes care of itself. It's built for STP Phase 2, so the extra employee details the ATO now needs are included automatically.
How Single Touch Payroll works with Xero
Automate every pay, tax and super calculation
Pay, tax, super and leave are calculated for you, so payday moves quickly. Set flexible pay calendars and rates, pay super directly through Xero, and review and approve each pay run.
See how super works in Xero Payroll
Hand payslips and leave to your team
Tired of fielding payslip questions? With Xero Me, your team can view payslips, check leave balances, submit leave requests and log timesheets from their phones. They handle the admin, and you get your time back.
Run payroll and accounting in one place
Your payroll, super, and accounting live on one platform, so the numbers flow straight into your books. Handle invoicing, cash flow, BAS, and pay runs without rekeying data or juggling logins.
Explore Xero's accounting software
Head into EOFY already sorted
Xero tracks PAYG withholding, super and employee payments as you go, all year long. When EOFYarrives, you finalise payroll in fewer steps because your records already add up.
Get your business EOFY-ready
Trustpilot
Monya
Trustpilot
Tom W
Trustpilot
Tina T
FAQs on Xero's payroll software
Xero Payroll is STP Phase 2-compliant and complies with ATO regulations. Each payday, it reports your salary, wages, PAYG withholding and super to the ATO for you. Xero also helps with end of financial year payroll finalisation and reconciliation.
Xero Payroll is STP Phase 2-compliant and complies with ATO regulations. Each payday, it reports your salary, wages, PAYG withholding and super to the ATO for you. Xero also helps with end of financial year payroll finalisation and reconciliation.
Single Touch Payroll (STP) is the ATO's system for reporting payroll information, including wages, tax and super, digitally each payday. Xero's payroll is STP Phase 2-compliant, so you can send those digital reports to the ATO every payday.
Single Touch Payroll (STP) is the ATO's system for reporting payroll information, including wages, tax and super, digitally each payday. Xero's payroll is STP Phase 2-compliant, so you can send those digital reports to the ATO every payday.
Absolutely. Xero sends your employees' super contributions to their nominated Australian super funds electronically, and automatic calculations help reduce errors and save you time.
Absolutely. Xero sends your employees' super contributions to their nominated Australian super funds electronically, and automatic calculations help reduce errors and save you time.
Xero calculates PAYG withholding automatically, based on each employee's tax file number, tax scale and earnings. It reports those wages and withholding amounts to the ATO through STP each payday, so your records stay up to date.
Xero calculates PAYG withholding automatically, based on each employee's tax file number, tax scale and earnings. It reports those wages and withholding amounts to the ATO through STP each payday, so your records stay up to date.
Setting up is straightforward. You'll need your business details and employee information, such as tax file numbers (TFNs), bank details, super funds and pay rates. Xero guides you through each step, and this small business payroll guide walks through what to prepare.
Setting up is straightforward. You'll need your business details and employee information, such as tax file numbers (TFNs), bank details, super funds and pay rates. Xero guides you through each step, and this small business payroll guide walks through what to prepare.
Yes. You can import your employees into Xero using a spreadsheet and enter opening balances and past earnings when you bring across payroll history. Set everyone up in Xero so you're ready for your first pay run, and the support team can help if you get stuck.
Yes. You can import your employees into Xero using a spreadsheet and enter opening balances and past earnings when you bring across payroll history. Set everyone up in Xero so you're ready for your first pay run, and the support team can help if you get stuck.
Yes they can. With the Xero Me app, your employees can view their payslips, check leave balances, submit leave requests and log timesheets from their phones.
Yes they can. With the Xero Me app, your employees can view their payslips, check leave balances, submit leave requests and log timesheets from their phones.
Xero updates each employee's leave balances automatically as pay runs happen, which cuts manual tracking. Employees with Xero Me can view those balances and request leave themselves, with requests flowing back to you for approval.
Xero updates each employee's leave balances automatically as pay runs happen, which cuts manual tracking. Employees with Xero Me can view those balances and request leave themselves, with requests flowing back to you for approval.
Xero's payroll pricing is based on the number of employees included each calendar month, rather than a per-transaction fee. Payroll sits alongside your accounting features in the one plan, so you're not paying for separate tools. See what's included on the Xero pricing plans page.
Xero's payroll pricing is based on the number of employees included each calendar month, rather than a per-transaction fee. Payroll sits alongside your accounting features in the one plan, so you're not paying for separate tools. See what's included on the Xero pricing plans page.
Yes. Xero calculates your employees' pay and tax and helps with compliance through its STP-compliant payroll. If you're unsure about a specific award obligation, check with a payroll specialist or the Fair Work Ombudsman.
Yes. Xero calculates your employees' pay and tax and helps with compliance through its STP-compliant payroll. If you're unsure about a specific award obligation, check with a payroll specialist or the Fair Work Ombudsman.
Accounting tips for Australian businesses
Get essential advice on how to pay your employees – and get paid by customers – more easily. See all payment guides
- Guide
What is an invoice? Types, inclusions and tips for getting paid
Learn what an invoice is, what to include, and how to send one that gets paid on time.
- Guide
Small business payroll: steps, compliance and software
Learn small business payroll steps, compliance basics, and tools that help you pay your team with confidence.
- Guide
How to build a watertight accounts receivable process
There’s one way to stay in business – you have to get paid. That’s why a good accounts receivable process is critical.
Get one month free
Access Xero features for 30 days, then decide which plan best suits your business.
See how cloud payroll software streamlines tasks
Stop dreading this.
