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Payroll for Australia

Payroll has been a recurring theme in our conversations with Australian accounting partners and small business owners over the past couple of years. Time and time again, we get told that payroll functionality was what they needed to switch to Xero; it was the missing piece of the puzzle.

From today, Australian users have full-featured payroll built in to Xero. The best online accounting software now includes the best online payroll solution. We think you’ll like it.

Sol Wise, CFO at digital marketing firm Classified AdVentures certainly likes it. Check out the video to see why:

Payroll is the latest example of our substantial investment in tools that make life easier for small businesses.

Features include:

  • Leave management
  • Pay templates to standardise employee’s pays
  • Automatic tax tables updates every new financial year
  • Payment Summaries
  • Timesheets
  • Employee self-service portal

For more details on plans and features, check our Pricing Page.

Payroll in Xero is the first integrated cloud-based product with automatic superannuation payments.

This is just the beginning for Australian payroll. Over the next few months we’ll be delivering Xero-style reports, employee-submitted timesheets, dashboard integration and the June 2013 superannuation legislation changes.

Get started with payroll through the dedicated area in our Help Centre or attend one of our webinars.

We’d love to know what you think so weigh in on the discussion in the Xero Community.


Read more about Business, Australia



Guy Pearson
28 May 2012 #

@Stu – Let me be the first to congratulate you, John and the team from Paycycle for getting this done before the end of the financial year in Australia. :)

Cannot wait to check out the webinars and am excited to see what the Xero and Paycycle team are going to release next!

Happy Monday.


Cecile Boulter
28 May 2012 #

Congratulations to you all working very hard to deliver this feature.
Great Milestone!!

Stuart McLeod
28 May 2012 #

Thanks @Guy, it’s a big achievement for everyone at Xero and we’re very proud of the team. All Paycyclers are well and truly now part of Team Xero!

Gillian Rossouw
28 May 2012 #

Absolutely fantastic and my congrats to the Xero team, well done. This weekend frantically set up a few more clients on Paycycle before the switch and felt like my first day at school waiting anxiously to be able to go in and see Xero Payroll on Steroids

Darren McMahon
28 May 2012 #

Congrats to the Xero and Paycycle crew for making this all happen to seemlessly. It is a credit to all involved.

Elizabeth Salter
28 May 2012 #

Congrats Xero & Paycycle. Looking fantastic!

Scott Barrington
28 May 2012 #

sounds great!

Agus Echague
28 May 2012 #

Congratulations to everyone!!!!!!!
Looks amazing, works like a charm… Keep rocking it!!!
Beso to all! =)

Ben Colefax
28 May 2012 #

This is really, really awesome. Little things like hiding salary until you mouseover is great!
Love it guys, keep rolling the features out.

Tim C from FGS
28 May 2012 #

Well done Stuart and the team – its been worth the wait
Give that hairy team member of yours a big bone as a treat

28 May 2012 #

The features looks gr8, would love to attend some webminars n trail if possible.
Email me

Carl Faumui
28 May 2012 #

Congrats to all the boys and girls at Xero and Paycycle, the timing couldn’t be better leading into a new financial year. Paycycle has always been sweet but it just got sweeter now that it’s wrapped up in Xero’s yummy interface. I just re-read my comment and it’s apparent I love food and I watch too much Master Chef lol, oh well but it’s all true, Xero is undoubtedly the best accounting software out there whether it’s cloud or desktop flavoured. Keep up the good work!

Stuart McLeod
28 May 2012 #

Thanks @Tim, I’ll be sure to! For those wondering exactly who or what Tim is referring to, here is the key member of the payroll senior management team.

James Solomons
28 May 2012 #

Awesome stuff @stu ! What a week for @Xero and @Paycycle !! Award Wins and finally the rumour has come true !

Looking forward to the new features, already in the pipeline !


Kathy-maree Bartle
28 May 2012 #

Hooray Hooray, this is just the best. I am so glad I work with @Xero because now they have my favourite payroll system Paycycle. And you know whats the best, its part of the packages. I am so glad I am part of the Team.

Gavin Weston
28 May 2012 #

Just tried to log on and the change is hopeless and no phone number to call. Sent two emails to so called support. Look likes it back to MYOB for the morning pays.

Phone support would be very nice but not sure customers are welcome.
0438 203 295

Stuart McLeod
28 May 2012 #

Hi Gavin,

Sorry that you’re experiencing some delay in a response to your tickets. As you can imagine we are experiencing a huge load of support today, however I can see that James got back to you about an hour ago. Should you have any further difficulties just get back to us on that ticket.

Glennis Stuckey
28 May 2012 #

Sounds great, when is it coming to NZ?

Rod Drury
28 May 2012 #

@glennis we already have good online payroll solutions in NZ that link with Xero

We are not planning to do payroll in NZ but will look at other large markets in time. Payroll is very country specific.

28 May 2012 #

Congratulations on this – it looks like a big step for Xero.

A similar step for Xero UK would be very welcome: I’m sure they do the job, but all the UK online options I’ve looked at have websites that look like they were designed ten years ago – it does not suggest good technology, ongoing development or that they care about their users’ experiences though I am sure they do. Sage with manual journal entries in Xero seems to be the best way for now here…

Matthew Carter
29 May 2012 #

The link Rod quotes for NZ solutions isn’t comprehensive ( I see solutions for Canada there for instance but not iPayroll ( which is NZ-focused.

29 May 2012 #

Bring it on for the UK asap as such a pain at present using sage then re entering info I agree with Nigel all the partners software looks years out of date & would not trust them to integrate if they can’t update there own sites.

29 May 2012 #

Hi, Is anyone else in the UK having problems since Santander changed their online Business Banking page?
I have made the changes as requested by Xero and now find I have approx 80 un-reconciled items and £2000 extra in the account which I know for certain is not right!!
Having kept my accounts up-to-date each day I have to say I find this really scary – any advice would be greatly received

29 May 2012 #

Can it manage contractors who are only taxed withholding tax, which varies according to the amount earned? – not a direct percentage.

Does it account for LAFHA?

Ben Kepes
29 May 2012 #

Matthew – the add-ons page seems to be regionally specific – iPayroll shows up when you set your region to EnZed….

Ronan Quirke
29 May 2012 #

@Matthew – @Ben is on the money, check the region selector in the bottom right hand corner of the page – sounds like you are seeing the Global rather than NZ version of our directory.

Matthew Carter
29 May 2012 #

Thanks Ben and Ronan. The link’s working for me now!

(Applying the region selector though takes me out of “Add-Ons” into “Advisors and Services”. To get back to the Payroll category I need to navigate to the Add-Ons then locate Payroll in the “Advanced Filter” selection. There may be some scope for fine-tuning the navigation there.)

Mark Skehan
29 May 2012 #

Well done paycycle and xero on the first step on integration, I must say however though after using it, that there is one crucial problem, and that is the inability to set up a payroll only user, I nave a payroll officer but I dont want her to be able to access the rest of my xero accounting.
As it is now, its a task that I will now have to take on. The idea of technology in business is to free people up to do the things that they need to do to grow their business. This now ties me back for a period every week.
I would have thought it a better move to hold off release for something as critical as this, and I am sure I am not the only one that sees this as a big issue.

Stuart McLeod
29 May 2012 #

Hi @Mark,
Thanks for your feedback.

That’s the thing about software. It’s always a matter of priority. I know that you see this issue as critical, and the feedback we’ve received so far suggests that it is important for a lot of people. But at the end of the day, is this as critical as leave accruals? Annual salary calculations? Automatic Superannuation Payments?

One day you have to ship. And we think we’ve struck the right balance between shipping and leaving some functionality on the table that we can come back around to. This issue is definitely high on our list, and look out for it in a coming release.


Jennie Smith
30 May 2012 #

Thanx for the beautiful integration of Paycycle to Xero. Love it! Question though… Will the payroll figures automatically generate in the Business Activity Statement at W1 and W2 ?? So far my check shows no figures :( Why would we have to do this manually??

Stuart McLeod
30 May 2012 #

Hi @Jennie,
It’s on our roadmap. Stay in touch on the blog.

Margaret Carey
30 May 2012 #

Have done some testing on Payroll – overall I do like it but there are a couple of concerns. Firstly you can post a payroll, approve the invoice and pay it, then you can change the payroll to Draft status, make changes and then you need to Post, Approve,Pay again – but the original postings still remain. Secondly, you can’t bulk approve the invoices, error comes up saying you are posting to a locked period – it isn’t. You have to drill into the invoice and approve from there. This issue is being woked on.
Main thing I don’t like is you have to Post the Payroll, then Approve and pay the AP invoice to get the postings into the ledger. Posting the payroll doesn’t post to the ledger – I can’t understand why there are the extra steps – you probably have already physically paid the employees and the GL accounts are mapped in the set up process – so why not pst direct to the GL.

what I do like is Employee Portal and link to Superannuation Funds – it is worth paying the extra $180 per annum for the Large version to get this feature

Stuart McLeod
30 May 2012 #

Hi @Margaret,
Thanks for your feedback. See my comment above on shipping product v all “critical” features.

Elton Bartel
7 June 2012 #

I would like to express my concern that phone support for payroll is no longer offered? Especially at least during the launch period. Payroll is a critical accounting function with deadlines eg payment is required before 4pm for employees to be paid. I have a error in the system and i am now waiting on your response as per your guidelines within 2-3 business hours (9am – 5.30pm)

You guys have done a great job but there seem to be a few bugs (to be expected) but this is really letting you down.

Stuart McLeod
7 June 2012 #

Hi @Elton,

Formally, Paycycle never had phone support. We were more than obliging when partners contacted us, and we did our best to be responsive as possible. And we continue to do so. Right now, we’re experiencing an unprecedented load on payroll support and we’re doing our very best to get back to you within minutes not hours. Please bear with us during this busy period and use the community and help pages as best as possible.

12 June 2012 #

Is it my imagination or have I missed something here. We used paycycle @ $29.95 per month and joined Xero on a $29.95 plan. Just did a migration and can’t update or correct any records as now we have to pay xero $49.95 per month for the use ??????? . I know it’s only $20 extra but it’s wrong. We don’t use any of the Xero Accounting features at all.

Stuart McLeod
12 June 2012 #

Hi @Catherine,
We really appreciate your feedback, and we think it’s fantastic that our lovely Paycycle customers are coming on to Xero. Perhaps the features in the core accounting application will appeal to you one day. In the mean time, and as outlined to all our Paycycle customers in March, April and May, you’re more than welcome to enjoy Xero for the same price that you were enjoying Paycycle. There is a promo code that was distributed to you via email that you can use to take advantage of this offer, or just drop us a line at payroll [at] xero [dot] com and our team will help you out.



15 June 2012 #

That is great… Congratulation !

5 July 2012 #

Hi while I do like the functionality of the Payroll system, I find the Timesheet function very limiting. If I want my employees to be able to log their own timesheet I need the ability to set start and end times along with recording any breaks. It would be great if they could add a comment as well ( eg my employees might describe the work they completed). Will this be a consideration in the future because at the moment this is not working for our business.

e-PayDay Pty Ltd
18 July 2012 #

This is indeed a great achievement. Congratulations! Looks like you’re off to a really good start with Payroll.

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