Payroll software that’s easy to love
Xero Payroll, powered by Gusto, brings full-service payroll directly into Xero. Pay your team, automate tax filings, and meet your compliance obligations with a clear view of your cash flow. One platform and one login makes running your business a whole lot easier.
One place for your small business payroll
Run payroll with confidence , knowing your financial data is unified.
- Set up in around 15 minutes
- A fast, reliable workflow
- Support for all 50 states (no extra cost)
- Powered by Gusto (highly rated by G2 reviewers)
- Processed $7m+ in payroll payments during beta
- 86% of customers run subsequent payrolls
Feel more in control
Xero does the heavy lifting for your employee and contractor payments – automate pay runs and file all your payroll taxes, including W-2s and 1099s.
- Get support for small teams (1–20)
- Pay on your schedule (weekly, bi-weekly, semi-monthly, off cycle)
- Direct Deposit (2-day, 4-day)
- Easily manage benefits
- Manage time off (PTO accruals)
Take the admin off your plate
Give your workforce modern tools for faster onboarding and efficient communication.
- Self-onboarding with no hassle
- Xero Me app (24/7 mobile and web access to pay stubs and tax documents)
- Payday email notifications
- Employees update their own info
Know where you stand
Enjoy the peace of mind of a compliance partner built into your ledger.
- Automated payroll tax filings
- Complete end-of-year tax handling (W-2s and 1099s)
- Confidence in your calculations (Gusto infrastructure)
Add payroll to your Xero subscription
Xero Payroll costs $36 per month, plus $6 per employee or contractor.
- Affordable accounting + payroll
- 2 months for free
- Free white-glove transfer on request
We’ll move your data for free
Switching providers? Xero won’t charge you extra for moving your payroll data.
- Fast and efficient
- Expert validation of historical data
- Dedicated support
Your payroll and accounting, connected
Automatically bring your payroll expenses and liabilities into your Xero general ledger.
- Reduce manual reconciliation
- Avoid disconnected workflows
- Keep a clear view of your books
- Manage it all in one platform
FAQs on Xero Payroll, powered by Gusto
Xero Payroll is built for small businesses, supporting teams from 1–20 people or more. It works across all 50 states, automatically applying the right tax rate for the jurisdiction, so your employees can live in different parts of the US without causing you extra admin.
Xero Payroll is built for small businesses, supporting teams from 1–20 people or more. It works across all 50 states, automatically applying the right tax rate for the jurisdiction, so your employees can live in different parts of the US without causing you extra admin.
Yes! Xero Payroll, powered by Gusto, calculates, files, and pays your federal and state taxes for you. It also withholds any deductions and generates tax forms to save you time and help you avoid mistakes.
Yes! Xero Payroll, powered by Gusto, calculates, files, and pays your federal and state taxes for you. It also withholds any deductions and generates tax forms to save you time and help you avoid mistakes.
For sure. If you employ contractors, you can pay them and file the 1099s with Xero Payroll. The software then sends the 1099s to your contractors to spare you the job.
For sure. If you employ contractors, you can pay them and file the 1099s with Xero Payroll. The software then sends the 1099s to your contractors to spare you the job.
Yes – Xero Payroll lets you pay your team’s wages directly into their bank accounts, helping to keep your employees happy.
Yes – Xero Payroll lets you pay your team’s wages directly into their bank accounts, helping to keep your employees happy.
Yes – your employees can log in to the Xero Me app on their phones or tablets to view their own pay stubs and other details. Xero instantly notifies them when they’ve been paid.
As for W-2s, Xero issues these and makes them available on the Xero Me app. Employees can download their W-2s as PDFs.
Yes – your employees can log in to the Xero Me app on their phones or tablets to view their own pay stubs and other details. Xero instantly notifies them when they’ve been paid.
As for W-2s, Xero issues these and makes them available on the Xero Me app. Employees can download their W-2s as PDFs.
You can! It’s a straightforward process that requires no technical knowledge. Move your data on your own or use Xero’s free transfer service. This way, you’ll feel confident you’ve set up everything properly.
You can! It’s a straightforward process that requires no technical knowledge. Move your data on your own or use Xero’s free transfer service. This way, you’ll feel confident you’ve set up everything properly.
Just add Xero Payroll to your subscription. Once it’s enabled, you’ll see a Payroll tab in your navigation bar – use this to start onboarding and then use payroll.
Just add Xero Payroll to your subscription. Once it’s enabled, you’ll see a Payroll tab in your navigation bar – use this to start onboarding and then use payroll.
Xero Payroll costs $36 per month, plus $6 per employee or contractor. Xero offers you two months for free to try Xero Payroll.
Xero Payroll costs $36 per month, plus $6 per employee or contractor. Xero offers you two months for free to try Xero Payroll.
No, you don’t need separate Gusto login details – you just log in to Xero, and then you can migrate over.
No, you don’t need separate Gusto login details – you just log in to Xero, and then you can migrate over.
Xero Payroll automatically calculates, files, and remits payroll taxes to federal, state, and local tax agencies, helping reduce the risk of penalties from missed or inaccurate tax payments. As tax regulations change, Xero Payroll helps keep your business compliant by ensuring taxes are calculated accurately, submitted to the appropriate agencies, and employees are paid correctly and on time.
Xero Payroll automatically calculates, files, and remits payroll taxes to federal, state, and local tax agencies, helping reduce the risk of penalties from missed or inaccurate tax payments. As tax regulations change, Xero Payroll helps keep your business compliant by ensuring taxes are calculated accurately, submitted to the appropriate agencies, and employees are paid correctly and on time.
Pay your bills at no extra cost
Free standard ACH bill payments are now included in Xero business plans.*
Early
for the first 6 months
Then $25 per month
An easy financial foundation - track cash flow with the essentials.
- Send quotes and 20 invoices†
- Accept online invoice payments^
- 5 bills
- Reconcile bank transactions
- Smart Document Capture
- View real-time reports
- W-9 + 1099 management
- Sales tax
- Visualize performance with basic graphs
- 30 day cash flow forecast
- Make online bill payments (Domestic - Free ACH)
- Make online bill payments (Cross Border)
Growing
for the first 6 months
Then $55 per month
Go beyond the basics - automate tasks and access performance dashboards.
- Send invoices and quotes
- Accept online invoice payments^
- Automate bill entry and track bills
- Auto-reconcile bank transactions (Beta)
- Smart Document Capture
- View real-time reports
- W-9 + 1099 management
- Sales tax
- Visualize performance with graphs
- 60 day cash flow forecast
- Make online bill payments (Domestic - Free ACH)
- Make online bill payments (Cross Border)
- Customize performance dashboards
- Tailored financial health scorecards
Forecast with clarity
Forecast with clarity
Established
for the first 6 months
Then $90 per month
Future proof your scaling business - with advanced tools and analytics.
- Send invoices and quotes
- Accept online invoice payments^
- Automate bill entry and track bills
- Auto-reconcile bank transactions (Beta)
- Smart Document Capture
- View real-time reports
- W-9 + 1099 management
- Sales tax
- Visualize performance with graphs
- 180 day cash flow forecast
- Make online bill payments (Domestic - Free ACH)
- Make online bill payments (Cross Border)
- Customize performance dashboards
- Tailored financial health scorecards
- Analyze KPIs and ratios
- Use multiple currencies
- Track time and costs for projects
- Employee expense and mileage claims
- Benchmark against the industry
- Make online bill payments (International)
Take control of your fiscal year-end with Xero and Gusto
Integrate your payroll and accounting software before the fiscal year-end. That way, your records are right and ready to go.
Simplify your entire business with Xero
Xero doesn’t just simplify your payroll – it eases all your financial admin, from invoicing and receiving payments to managing cash flow.
How Xero energizes your business
Discover how Xero’s clever features and design can transform the way you manage your business finances.
Xero vs QuickBooks
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Xero vs FreshBooks
When it comes to reliable accounting software, Xero is the FreshBooks alternative with everything you need.
Software for better business
Xero software boosts every aspect of how you organize and manage your financial admin.
Payroll resources for small businesses
Xero glossary: What is payroll?
See an overview of the payroll process and definitions of common payroll terms in the Xero glossary.
Guide: How to do payroll
Get an intro to doing payroll and why doing it well matters in Xero’s small business guide to bookkeeping.
*Fees apply for other payment methods.