How to Process Pay Runs in Payroll for Xero - Us edition

With payroll for Xero you can add a run and pay your employees in just a few clicks. Go to payroll overview, it's the best place to get an overview Of what's happening before we had add a payrun. At a glance we can view previous payruns or any pending time off requests for the payrun I'm about to do. Timesheets is another good area to check out before getting underway. If there are employee timesheets not yet approved by relevant managers we can as payroll administrator go ahead and approve or decline or follow up but the managers. Once pending time off requests and timesheets are taken care of let's head back to payruns. Choose the pay period and click next and we have our payrun. Employees pay items are automatically generated from the pay template within the employee record in Xero. Approved leave and timesheets will already be calculated into their pay. You'll get a warning if there are any pending leave requests or timesheets so nothing gets missed. If any other adjustments are needed we can drill into their pay details and make the necessary changes. If any employees need to be excluded from this payrun for whatever reason we can easily deselect them. Use the view report's option to double check everything is in order and once we're ready, approve the payrun. If we notice an an error here we have one last opportunity. Use the view pay stubs option and your able to revert the payrun back to a draft status but this is all okay so or click pay employees. If you've set up direct payments from your bank in Xero it will pay the employees directly. Remember this will immediately transmit the payment so do make sure you have made a thorough review of that pay run beforehand. Once you confirm that you want to transmit the deposit this will send the instructions to a third party payment house which facilitates the payment from your nominated bank account directly into your employees bank accounts. Any principals named on the bank in Xero will also be notified of this action via email. The alternative is to pay by check after clicking pay employees a PDF with the run of checks and payment stubs will be downloaded. Put your check forms into the printer and away you go. Don't worry about updating your accounts, the journal is already recorded in Xero along with the payments which you can easily reconcile later on. Add and post pay runs, pay employees and have your accounts updated in a matter of minutes.