Payroll for the United States

Today we’re proud to announce that payroll and accounting are available seamlessly together for our US customers. In what is our biggest feature release this year, it’s being made available to all Xero users in the following US states;

  • California
  • Utah
  • New York
  • New Jersey
  • Virginia
  • Florida

Separate online payroll and accounting is a pain and has been for a long time now. So we’ve solved it – and then some. It means you no longer have to export and import your payroll data, nor use separate logins.

You can be instantly more efficient and have fewer errors by having your general ledger automatically updated after running payroll. You can also share the payroll tasks by easily collaborating with employees through an employee app, where they can view pay stubs, submit timesheets and even apply for time off.

Check out the goodness in this video!

Seamless Payroll

With the general ledger automatically updated, you can easily follow the underlying payroll data through several comprehensive payroll reports as well as the balance sheet, income statement and other relevant accounting reports.

Payroll administrators are empowered with an easy-to-access dashboard providing a quick overview of the payroll with employee timesheets and time off requests.

This is just the beginning for US payroll. Early in the new year we’ll add electronic payroll tax payments and filings in our supported states, which makes the dreaded filing and payment process super easy.

What’s coming?

Beyond all this, we’re already working on employee W2 forms as well as the entire end of year (FY14) payroll process. Also on the radar is a graphical view of all requested, approved and denied employee time off, an employee pay day iOS application, more comprehensive opening balances capability, conversion functionality, an open payroll API and of course the remaining 44 States.

Check out our all inclusive subscriptions, get started through the dedicated area in our Help Center or attend one of our in person or online certification courses.

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

35 Comments

James
December 9, 2013 at 10:22 am

Neat!

Can you give an indication on when AU gets seamless payroll?

Stuart McLeod
December 9, 2013 at 10:23 am

@Jame,s we’re actively working on AU GL integration, so we’re aiming for first half of next year.

Benjamin Bowles
December 9, 2013 at 10:31 am

UK soon? Please…. :)

Stuart McLeod
December 9, 2013 at 10:32 am

@Benjamin, we are at the very beginning of UK payroll and it’s still a while off yet. Watch this space for more info though.

James Solomons
December 9, 2013 at 11:01 am

Roll it out here in Aus Stu, roll it out ! Don’t forget your roots mate !

Sandra Stubbs
December 9, 2013 at 12:27 pm

It would be great for the kiwis too :-)

Jason DuPont
December 9, 2013 at 12:44 pm

I’ve already up’ed my payment plan and am ready to roll on this because xero has been saying this will be ready in December. Now I’m logged in and setting it up and it says that my state, South Carolina is not yet supported. I REALLY need this. When will my state be ready?

Jay Kimelman
December 9, 2013 at 4:41 pm

Great news!! Been waiting for this! I have 2 new companies coming on board by 12/31…. Starting 2014 Xero style!!

Michael
December 9, 2013 at 9:44 pm

Nevada is missing. UK is missing. Will it be integrated with some rota/schedule software?

Derek Draper
December 10, 2013 at 2:47 am

Awesome new product at a great value for Xero users! Several clients already are on board to move over to Xero Payroll. :)

Nicola
December 10, 2013 at 3:15 am

Best enhancement yet! I can’t wait for you to bring this out in the UK, any idea of time scale (spring, summer 2014?) We’re a recruitment firm and I have do a import from a timesheet system for all our temporary workers every week. This would save me hours and remove any manual errors. Happy to be part of a UK trial group if you need one!

Stuart McLeod
December 10, 2013 at 6:53 am

Great to hear @Jay!

@Michael, yes we’re aware that Nevada is missing. We’ve spoken about our plans for UK before. There are lots of addons that do scheduling.

@Derek, lovely of you to say, thank you!

@Nicola, we’re aiming for prior to March 2015.

Bob Seekely
December 10, 2013 at 7:35 am

Stuart, where (link?) can we obtain information about the User Access Permissions (restriction) features that you folks are ‘baking into’ the (US) Payroll Application? For example, we would not want all users to be able to access Payroll Bank Register transaction details, or general ledger reports that contain Payroll transaction details by Payee Name.

Stuart McLeod
December 10, 2013 at 7:39 am

Hi @Bob, great question. Start here
https://help.xero.com/#PayrollAdmin

But to answer your question you can have users who are all payroll and no invoice, GL, etc. And vice versa. We never post employee names to the GL though, for that reason. So I think we’ve got all your issues covered!

Rich
December 10, 2013 at 9:29 am

Great work Stu !!

jeremy
December 10, 2013 at 10:09 am

please add Payroll in Texas soon! I’ll switch my companies from Intuit to Xero!

Tim
December 10, 2013 at 11:39 am

I think everyone wants to ask: Why so few states? When are the rest happening? Why are you billing this as ‘payroll for the US’ when it’s really only for selected states?

Stuart McLeod
December 10, 2013 at 12:11 pm

Thanks for your input, Tim. The answer really is, because we don’t need to ship product CDs. States that are coming later have the luxury of having any kinks ironed out and the likelihood of the product meeting more needs as time goes on increases.

The remaining States will be rolled out through CY14, and potentially beyond.

We’re not billing anything. If you don’t need payroll, you don’t pay for payroll.

Joe
December 10, 2013 at 2:50 pm

I do not know if we have any other customers apart from us using Xero in Papua New Guinea but let me be frank that with the latest 3G internet services rolling out in PNG by Digicel, we are expecting more customers to use Xero.

Therefore, it would be great if you could roll out this seamless payroll to this country as well. And also integrate our major commercial bank “Bank of South Pacific” for efficient online banking. I am sure inclusion of these features would definitely persuade or convince more customers at this end to put their accounting online.

Trevor Gehman
December 11, 2013 at 3:10 am

Hi Stuart, I’m wondering, does Xero handle submitting the state and federal taxes, or are we responsible for sending those in? I ask that because I haven’t signed any state power of attorney forms like I did with SurePayroll in the past.

Brina Kelsch
December 11, 2013 at 3:58 am

Does this work for states that are not on the list but have no state income taxes? Say New Hampshire?

Ashik Ahmed
December 11, 2013 at 8:24 am

Congratulations @Stuart on completing the usa payroll project on time :)

We look forward to adding all the awesome things we do in Australia for USA as well – http://www.deputy.com/partners/xero/ (which includes award calculations with overtime )

Stuart McLeod
December 11, 2013 at 8:34 am

@Trevor, Xero will handle the submission for State & Federal Taxes. We’ll be releasing that early in the new year. We’re using the “Transmission” model, rather than the “Reporting” model if you’re familiar with that, so there won’t be PoA forms, rather a T&C document. You’ll see that come up in Payroll Settings | Electronic Services when that feature hits the product. Watch the blog for more on that.

@Brina, not at this stage, but we’re working through all States as fast as possible.

Steven W
December 12, 2013 at 3:27 am

Sounds so exciting. What a great new product. But…. now you’ve done all the hard work can you re-code it slightly and roll it out for us in the UK ???? Rival to beat here is these guys: http://www.thepayrollsite.co.uk

Rod
December 12, 2013 at 8:32 am

Awesome! Thanks for all you hard work.

Ben Parizek
December 12, 2013 at 9:31 am

This Payroll functionality looks great and I love the integration with direct deposit and checks for employees. Would any similar functionality be possible for sub-contractors? For example, is it possible (or do you expect it ever might be possible) to use the Direct deposit and checks payment functionality on a bill in the Xero system? Say, a contractor sends me an invoice. I add that invoice to Xero and hit “Pay this invoice” and a list of direct deposit accounts appears that I can pay to?

Stuart McLeod
December 12, 2013 at 9:56 am

@ben, we don’t support contractors with 1099s through the payroll process, rather they are available through the normal vendor process. It’s something we’ll look into at a later stage.

Chloe Peach
December 12, 2013 at 11:54 am

I think that this is a good idea of combining both payroll and accounting, however i think the idea of being able to book time off from work and look at payslips. Technology is great and it has definitely advanced us as beings, however there will always be technological flaws and the idea of only being able to book time off from work through an app is terrible, and employees will undoubtedly blame technology if something goes wrong, and doesn’t work in their favor.

Dilip
December 21, 2013 at 2:22 pm

hi with payroll can when can we import timesheets? In the interim can the tracking be added to the Payrun page?

Blake Oliver
February 15, 2014 at 8:06 pm

Electronic payments will make Xero payroll truly seamless. For now I have made manual payments to the IRS and EDD. However I’m not able to post payments to the payroll bills in Purchases as these bills are locked. How do we reconcile in the meantime?

Stephen Jones
May 10, 2014 at 7:10 am

When will it be available for Washington State?

Erik
May 17, 2014 at 9:38 pm

Hi, we are Florida based company looking to switch to Xero for accounting and payroll, however, we just hired an employee in Pennsylvania, which is not one of the supported states. How can we pay him?

Rob
March 29, 2015 at 12:04 pm

Thats great that the UK has their payroll.
How about the 43 states in the US that still don’t?
Want to move away from Intuit asap, but I am seeing the same trends here.
Give me a reliable timeframe and you have earned my business.

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