Managing payroll is easy with Xero. Within Xero’s payroll feature, users can move through the entire payroll process with ease. Alternatively, there are also many Xero payroll integrations which enable you to utilise a third party payroll app, with the data shared directly with Xero.
Why use Xero for payroll?
Xero makes it easy for you to conduct the payroll process end-to-end. Xero payroll offers several payroll capabilities including timesheets, reports, tax calculations and tax filings, to ensure that the payroll process is as simple as possible.
Using Xero payroll will save you the trouble of manual bookkeeping, as employee hours are recorded and seamlessly appear in pay runs, ready for automated calculation and payment.
Not only is the payroll process simplified, but you save endless amounts of time through reduced manual effort. Once Xero payroll has been set up with business and employee details, payroll can be processed in less than one hour.
How to use Xero for payroll?
Xero payroll is perfect for small business owners, as it is designed to be user friendly, creating a seamless process from start to finish.
To use Xero in payroll, you will need to:
- Collect required payroll information and set up your payroll account
- You will need bank account details, wages payable and expense account details, a list of necessary pay items and the personal and employment details of your staff.
- Set up payroll calendar
- You can choose to set up a payroll calendar which corresponds with your regular pay run to enhance ease and organisation.
- Create pay templates
- You can create templates where you set and adjust employees earnings, deductions, reimbursements, and superannuation.
Once Xero payroll has been set up, using it is as easy as:
- Adding a pay run
- Adjusting the pay of employees
- Posting a pay run
- Paying employees
- Emailing employees their payslips
- Reconciling payroll payments
When to use an integrated payroll app?
Although Xero payroll can handle the entire payroll process end-to-end, it is designed for small and medium sized businesses. Thus, there may be a point when Xero can no longer efficiently handle your payroll. The more employees added to the payroll process, the slower the payroll process becomes. Therefore, once your business has outgrown Xero payroll, you will need to scale appropriately. You can do this through Xero payroll integrations.
You may choose to use an integrated payroll app if your business is quite complex, if you have multiple locations, or if you have international operations which Xero payroll alone can not handle. This may encourage you to move to a more comprehensive payroll platform.
Alternatively, if you were already using a payroll app but have recently moved over to Xero, have a look at whether it integrates with Xero to ensure a seamless data transfer.
Payroll apps which integrate with Xero
Here are some of the payroll apps which integrate seamlessly with Xero:
KeyPay: This app is a cloud-based payroll platform, designed to relieve the stress of payroll through its automated pay runs feature. Through integrating with Xero, KeyPay enables users to directly import accounts charts and post payroll entries into Xero after the pay run has been finalised. This helps you achieve a seamless payroll process.
CloudPayroll: Providing users with various features and easy to use software, CloudPayroll can handle numerous employees in the payroll process. Within this Xero payroll integration, you can set up your payroll and manage superannuation, leave and employee records. This app can send your General Ledger postings directly to Xero as authorised accounts payable invoices.
Through the utilisation of either Xero’s own payroll feature or Xero payroll integrations, Xero will be able to support you with your payroll needs.
Looking to run your payroll through Xero or a Xero integration? We can help. Keeping Company is your expert Xero partner. Contact us today.
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For all media enquires please contact Tracy Miller, CMO, Keeping Company 0414 898 452.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.