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Jo Archer
July 5, 2011 at 10.49 am

How many employees can be loaded into a Payroll?

Richard Phillips
July 5, 2011 at 11.33 am

While we suggest Xero Payroll suits smaller businesses with little variance to their pay runs, there are no limits to the number of employees you can load into a pay run.

July 5, 2011 at 4.52 pm

hi guys, i seriously reckon you need to get serious with payroll, forget the addons they are simply too expensive. surely getting payroll the calculates tax, super and leave needs to be on the cards when sassu and myob live have these features. love xero but need payroll!

bhaskar Musuku
July 16, 2011 at 3.30 pm

I would like to use payroll on xero, could some one help me to set up etc.

Gillian Rossouw
July 18, 2011 at 12.09 pm

Hi Bhaskar if you care to send me your contact details via email I would welcome the opportunity to assist you with setting up Xero Payroll. Email:
Regards Gillian

August 5, 2011 at 12.50 pm

Totally agree with Brandon. Love Xero but at the moment I may as well stick with my excel version of payroll.

August 11, 2011 at 6.43 pm

Definitely need to get leave accruals, automatic tax calcs, etc up and running. I’d also like to see charge rates & timesheeting included to support the pay/bill models for subcontracting scenarios.

August 25, 2011 at 8.34 pm

Does Payroll automatically calculate the PAYE tax for each employee and manage employee holiday and sick day accruals? Also – with this does it calculate how much someone is owed upon leaving the company? If not, are these scheduled to be included in development at some point soon? Cheers.

August 27, 2011 at 4.24 pm

I so agree, I would love it if xero Payroll looked after PAYE calculations and leave/sick day accruals. It would be the only business software I would need. Thanks

August 27, 2011 at 7.18 pm

PAYE Calculations – Yes please!

Peter Spencer
October 27, 2011 at 11.53 pm

In my experience, any small business with just a few employees should use a Payroll Service to deal with the complete wages headache. They only cost around £5 per employee per month, and will save you hours if not days of work. Why do it yourself? You just email them who is to be paid what and when and they do it all.

Then they email you a report, and all you have to do is use the payroll functions in Xero to enter the figures.

The legislation and rules are just so complex and fast changing these days, that I think I would have to be employing 100 employees before I would consider trying to do it in house.

January 2, 2012 at 2.38 am

Hi There,
Can I set a pay run for my subcontractors , they get a regular payments every 2 weeks for contracted jobs . They work on ABN , help please?

Catherine in reply to Matt Xero
January 4, 2012 at 11.45 am

@Matt – I’ve chatted to someone in our Customer Care team in Australia – far more knowledgeable than me on this and here’s what I can report:
As subcontractors are recognized as running their own business, payments to them must be separated from wages paid to employees as they’re not considered employees.

To do this in Xero you’ll need to create a new expense account called Subcontractors and enter Accounts Payable invoices coded to this account. Record payments from the bank account either on each invoice or from the bank statement line during bank reconciliation.

At the end of the financial year when you need to provide a summary of payments to contractors you can run the Contact Transactions Report.

I hope this is relevant for your scenario. Due to laws in Australia specifically addressing the situation where a subcontractor is considered an employee, we recommend you talk to your accountant or financial advisor to make sure you’re recording this right – unless any of them are reading these comments and want to jump in!

February 23, 2012 at 4.16 pm

How do you deduct employee loan repayments, payable to the Company ? Post Tax deductions would be the answer, but can’t seem to set it up?
Any ideas?

March 2, 2012 at 11.04 am

I seriously agree with many of the comments above. Come on Xero, surely it can’t be that hard to have the payroll function calculate tax and leave? All of it is available from the IRD online so how hard would it be to incorporate that into the Xero product?

Don’t put it in the “too hard” basket, don’t make us purchase expensive add-ons for just a few employees. PLEASE!

March 6, 2012 at 9.20 pm

I just completed my first payrole and need help. I deducted $140 for boots however this created a payable invoice PR0001. The boots were paid in another invoice already reconciled on an account payment previously, how do I reconcile now?

Richard Phillips
March 7, 2012 at 8.41 am

@Stephen thanks for the question. I’ve sent a ticket to our Customer Care Team ( as that’s the best place for help on technical questions. You can also check out our new Xero Community site ( and join the conversation there.

March 19, 2012 at 3.15 pm

Just reading some of the questions and don’t know if the answer is there or not, but can the payroll work out PAYE and the amount of Holidays owing???. Does it cost extra to have your payroll?? Surely as we are paying for the accounting system payroll should be included. We only have 2 Employee so I really don’t want extra cost on a small business.

Richard Phillips
March 19, 2012 at 3.44 pm

@Linda – the PAYE and Holiday calculations aren’t part of the features we included in Xero Payroll. Based on the market demand in Australia for payroll to be included in the accounting engine, and the precedent set by incumbent software vendors, last year we acquired payroll solution Paycycle. We’ve nearly completed integrating this into Xero and this will be included in Xero Business subscriptions in Australia at no extra charge. As far as other markets are concerned we’ll get to the end of the Australia roll out by 1 July, then make an assessment as to where is best to focus next. We are listening to your feedback and it all counts in our decision making process so appreciate you voicing your thoughts.

April 1, 2012 at 8.56 pm

Payroll is just the next step I need to address on Xero. Is this setup to address NZ IRD requirements? Also do the payments still have to be physically made through the bank or can it be done remotely via XERO?

Mike Cross
April 10, 2012 at 3.02 am

I’d like to add my vote for having a full UK payroll function added to Xero asap please. Are there any plans for this?

Richard Phillips in reply to Mike Cross
April 10, 2012 at 9.13 am

@Mike we hear you! Once payroll is bedded down in Australia we’ll assess the requirements in other markets and work out if it makes sense to build something based on resources and the market opportunity. The UK is a good fit so it will be one of the markets we look at.

April 19, 2012 at 2.17 am

Hi Guys,
c’mon it’s crazy & frustrating not having integrated, fully functional payroll in Xero – all the other main players do; Sage, QuickBooks, etc… when can we expect it for the UK pls?

Richard Phillips
April 19, 2012 at 9.29 am

@Mo_C we’re working hard on it for you. Once Australia is up and running we’ll have the building blocks for a lot of what you’ll need in the UK. It’s hard to provide a date before we hit that milestone. We’re building the only global online accounting solution on the side too so that takes up some resource.

May 23, 2012 at 12.31 am

I am looking at the Xero software to substitute for MYOB. You commented on 19 March that the Payroll will be incorporated into the Xero business subscriptions by 1 July. Will that include the tax calculations etc? Is it already available?

Richard Phillips in reply to Geoff
May 23, 2012 at 11.39 am

@Geoff – not long now. Expect an announcement on payroll in Xero very soon. Still on track to land before 1 July.

September 11, 2012 at 3.12 pm

When do you think the rollout for the integrated payroll with tax and leave calculations will be available to NZ? Is Australia’s rollout a trial or is it up and running yet? Being neighbouring countries, it would be fantastic if we could also access it. We have 3 employees and the expensive payroll add-ons are really not worth it.

Richard Phillips in reply to Shirley
September 11, 2012 at 3.45 pm

@Shirley we don’t have any plans to roll payroll out in New Zealand. We see great value in the existing payroll Add-ons in New Zealand and you should be able to process your payroll (including payments and filing) for less than a few coffees each week with three employees. Just to shed some light on our priorities – we have some features to get out the door to complete the core engine (stock and purchase orders are just two examples), and high priority functionality in other regions (like the 1099 so our US users can keep the tax man happy) that we’re investing hard in right now. There are also some big picture features you’ll see in the next few months that will reduce re-keying of invoices for SMEs – we expect this bump SME productivity by taking another big chunk of data entry out of the daily routine. Lots more to do but we’re running as fast as we can for you.

December 19, 2012 at 6.35 am

Payroll in the US would be wonderful…any timeline on that? The way our gov’t is adding rules, it requires to have one employee to administer payroll for every employee working. Intuit and Sage are absolutely awful to use….help!

Max Baynes
January 26, 2013 at 5.20 am

Looking forward to payroll with UK PAYE tax calculations included. Can’t really see the point otherwise

Audrey Seguy
February 27, 2013 at 4.16 am

Any update on a fully integrated UK payroll solution that would include PAYE, statutory maternity/paternity payments, etc.?

April 10, 2013 at 2.13 pm

hi, just wanting to know how you go about purchasing an add-on to calculate PAYE etc

May 15, 2013 at 6.45 pm

When are you and Bankwest Australia going to connect and allow aba file upload? I know it’s Bankwest, but can’t you guys do a bit of lobbying?

July 11, 2013 at 6.27 am

We are using mob accounting plus to do our invoicing and payroll.
Can we import all our details into Zero or have to start from scratch?
Can we perform our fortnightly pays or is that an add on?
Thanks Peter

August 2, 2013 at 9.44 pm

I don’t understand why the ABA upload does not work with Bankwest. This is starting to really impact us. @Luke is lobbying what’s required? afterall aba is a standard format right?

August 24, 2013 at 3.14 pm

I don’t know if there’s voice over but I suppose there is. I’m hard of hearing and I’m sure there are others like me too who want to use Xero.

SUGGESTION: please add subtitles to the videos. Thank you so much!

September 16, 2013 at 12.01 am

Hi I am just curious if Xero is going to add more sophisticated way to process invoices by Subcontractors like it’s done on Freshbooks. Freshbooks have awesome feature when it comes to invoicing (from the Contractor side) where he becomes linked to the company he is being contracted by and can simply created invoices that automatically appear on the other end. Is Xero planning something like this in the future?

Kirsty McDiarmid
September 18, 2013 at 7.01 pm

Hi, if your subcontractor has Xero as well you can achieve this by sending them an invite for Xero to Xero. Access this under settings, general settings, connect, Xero to Xero. Then when they create an invoice it will come into your Xero account as a Draft for you to code and approve. Hope this helps.

Fakhruddin Bhaila
November 9, 2013 at 5.49 pm

I am new to to xero, want to import opening balances of all the accounts as on 31 Oct to xero, how ?

Gary @BacktoBlack
January 17, 2014 at 9.55 am

I can hope when the payroll does hit the UK shores you will make sure you put CIS into it. There are very little programmes out there that deal with it and I would hate to ad you the the top of the naughty list! lol

John Cotter
January 21, 2014 at 7.44 am

Forget it folks – Xero have no intention of introducing UK payroll.

The add-in options are very poor. This is the worst thing about Xero combined with their reporting.

MyPaye totally unsatisfactory – I have used it for a year.

Feedback to MyPAYE sent today:

1. P45 ridiculous to generate except in ideal circumstances (software provides no help on how to do this ends up feeling like driving a 50 year old car – not a Rolls Royce) Your own staff admit it could be improved and offer a vague suggestion you might get round to it!
2. No online user guidance
3. Reports – shoddy
4. Interface with Xero – shoddy
5. Two stages to send a support request – frustrating!
6. No one has the integrity to pick up the phone to a furious customer when your email support is patently causing utter frustration.

Now for the pain of moving all my clients to another platform. I probably will abandon any idea of integration to Xero. Just try and get the Rolls Royce of a payroll solution.

Oliver Furniss
May 8, 2014 at 7.45 am

@John – Payroll in Xero providing seamless accounting and payroll for the UK is a focus for us this year. We are currently in design stages and at this time we cannot communicate release dates. Our vision is to give small businesses access to the best payroll software available to save them hours per week. Once we have firm details and dates we will be letting everyone know.

Oliver Furniss
May 8, 2014 at 7.46 am

@Gary – CIS is something we are looking into as part of the design and research phase of UK payroll in Xero. Whilst it’s an important feature it’s likely not to be in the first release but we will release constant updates and get voting for it in community if its something you’d like to see in UK Payroll.

June 11, 2014 at 7.59 pm

I am facing a issue ,while fetching Payroll data from payroll api.
In my Payroll repository,i am successfully retrieve the payitem like,deduction,but my earning model,always giving me the 0 record,even i have earning item in xero payroll setting.
If somebody know the reason,please let me know the solution.

February 19, 2015 at 7.26 pm

Your NZ website says that “full payroll is coming soon”. Do you have a roll out date for this yet?

Oliver Furniss
February 20, 2015 at 1.44 pm

@jj – watch this space for news next week.

Anne Reid
February 20, 2015 at 10.23 pm

Great news on UK payroll – when can we access in test environment?

Is a discounted monthly fee offered on Premium 20 and what would be monthly fee
for a charity that already has a discounted Standard Plan?

Anne Reid
February 21, 2015 at 6.02 am

The new pricing outlined in the blog does not answer the questions I asked.
Who should I contact to get answers?

Kevin Preston
March 17, 2015 at 7.30 am

I am an accountant user with 30 or so clients on Xero and I use either Payroll Manager or Superpay for our PAYE bureau work.
I appreciate the reprieve of the very useful (if sometimes inadequate, viz tax refunds) Pay Run but am seriously disappointed that it is no longer available to new users or, indeed, long term existing users who have not activated it.
The bureau work is too important to switch from tried and tested software which is very reasonably priced to the rather clunky Xero that works at slow internet speeds; neither would it make sense commercially as it would just eat into our own profit through having to increase the charge to clients for Xero.

April 11, 2015 at 8.27 am

We are wanting two people to do the payroll: financial controller will do salaries and her assistant will do the hourly paid. FC can see everything but assistant can only be allowed to see the hourly paid info. Is this possible?

April 16, 2015 at 6.06 am

I am trying to set our practice up for payroll (as a tester) and it appears that the holidays can only be accrued as calendar year, anniversary date (assume the anniversary of the employee start date) or on a pay period basis. We run to the Tax Year, how can I do this

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