Set Up Employees in Xero
How to add a new employee in Xero Payroll, including personal details, employment, tax, leave, bank accounts, and pay templates.
Setting up employees correctly in Xero ensures their pay, tax, super, and leave are all calculated accurately from the first pay run. Here's how to add a new employee and configure each tab.
1. Open the Employees List
Go to Payroll and select Employees. You can also invite existing staff into the employee portal from here so they can view payslips, request leave, and submit timesheets.
2. Add a New Employee
Click Add employee.
Details Tab
Enter the employee's basic personal information — name, address, date of birth, and contact details.
Employment Tab
- Start date — enter the date they commenced employment.
- Pay calendar — determines how often they're paid (e.g. fortnightly).
- Employee group — assign to a tracking category if applicable.
- Holiday group — assign to the correct public holiday group.
- Ordinary earnings rate — select their standard rate of pay.
- Manager access — if the employee is a manager, enable them to approve leave and timesheet requests.
- Super membership — add and manage their superannuation fund(s) on this tab.
Taxes Tab
- Enter the employee's Tax File Number (TFN).
- Set employment basis (full-time, part-time, casual) and any special conditions.
- Submit the tax declaration by clicking File now. Once confirmed, the status updates to Filed.
Leave Tab
- View current leave balances and any outstanding leave requests.
- Assign leave types — for each type, set the calculation method, hours accrued, and opening balance.
Bank Accounts Tab
Enter the employee's bank account for wage payments. You can split wages across more than one account if required.
Payslips Tab
View the employee's full payslip history and download payslips as PDFs.
Pay Template Tab
The pay template defines the default pay items that pre-populate each pay run. At minimum, include:
- An earnings line for ordinary hours
- A superannuation line
Opening Balances Tab
If you're setting up payroll part-way through a financial year, enter year-to-date balances here so Xero has accurate cumulative figures for reporting.
Manage Employee Leave
How to view, approve, and report on employee leave requests in Xero Payroll before processing a pay run.