How to Get Started with Payroll in Xero

An overview of Xero's payroll features, including employee setup, leave, timesheets, pay runs, and superannuation.

XeroPayrollOverview

Xero Payroll covers everything you need to pay your team accurately and on time — from employee records and leave management through to timesheets, pay runs, and superannuation. Here's a quick orientation.

Payroll Settings

Before processing your first pay run, make sure your payroll settings are configured correctly for your business. This includes pay calendars, leave types, pay items, and superannuation funds.

Managing Employees

From the Employees tab, add staff members and complete their personal, employment, tax, and pay details. Once set up, invite staff into the employee portal so they can access payslips, submit timesheets, and request leave at any time.

Leave Management

From the Leave tab, you can:

  • Approve or decline leave requests submitted by staff
  • Add leave requests on behalf of any employee
  • View the full leave history for your team

Timesheets

Get an overview of all timesheets and their current status — Draft, Pending approval, or Approved. Follow up with employees or managers for any timesheets that haven't been approved, or approve them yourself.

Processing Pay Runs

When it's time to pay your employees, click Add pay run. Xero walks you through the process step by step. You can review and adjust individual employee pay before posting, and view payroll reports throughout.

Payroll Overview Tab

The Overview tab gives you a summary of key payroll figures and upcoming dates, along with any pay runs, leave requests, and timesheets waiting for your attention.

Superannuation

If you're on the Premium pricing plan, you can process super contributions for your employees with just a few clicks — directly from within Xero.

Up next
Lesson 24

Configure Payroll Settings

How to configure payroll organisation settings, pay calendars, public holidays, pay items, and superannuation funds in Xero.

Lesson 24