Configure Payroll Settings

Payroll settings is where you configure Xero Payroll to match your business structure before you start paying employees. Work through each tab carefully and save as you go.

Organisation Tab

• Set the bank account used for batch payments to employees.
• Review and update the liability and expense accounts used in payroll journals.
• If you use tracking categories, enter the employee group and timesheet categories here.
• Choose what to display on staff payslips, including annual salary, employment basis, and a company logo.

Save your changes before moving to the next tab.

Calendars Tab

Pay calendars define your pay frequencies (weekly, fortnightly, monthly). Any calendars already set up will appear here.

To add a new calendar:

1. Click Add pay calendar.
2. Choose the pay period (e.g. fortnightly).
3. Give it a name.
4. Set the period start date and the date of the first payment to staff.

Holidays Tab

Shows public and paid holidays organised by group. Default groups represent each state or region.

• Add a group — create a custom holiday group for a specific team or location.
• Add a holiday — add individual holidays to a group.

Once employees are assigned to a group, any leave requests that span a holiday are automatically adjusted.

Pay Items Tab

Contains earnings, deductions, reimbursements, and leave items. The basics are pre-configured, but you can add more as needed.

Example — adding an overtime earnings rate:

1. Click Add earnings rate.
2. Enter a name.
3. Change the earnings category to Overtime earnings.
4. Set the rate type to Multiple and enter the multiplier (e.g. 1.5 for time-and-a-half).
5. Select an account and click Save.

Superannuation Tab

Add the super funds your employees belong to:

1. Click Add super fund.
2. Choose Regulated or Self-managed.
3. Enter your employer number if applicable.

Super funds added here become available to assign to individual employees.