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Changes to Xero Payroll are finally here!

August 18, 2014

Xero has listened to much of its user feedback over the last two years in relation to Payroll and released major changes to the Payroll module which will enhance the user experience.

Death of the Draft Bill

The first major change is the removal of the draft bill. This is a relief to all accountants and bookkeepers everywhere and removes a step in the Pay Run completion process. Upon pressing ‘Post Pay Run’, your wage totals, PAYG and Super amounts will all post to the relevant Xero ledger accounts.

To deal with the subsequent reconciliation of payments coming out of the bank, Xero has added a new Wages Payable Account field within payroll settings to record the net wages payable amount of each pay run within the journal. This provides you the benefit of keeping your wages payable transactions separate from accounts payable.

To reconcile your wage payment amounts, simply code them to the new ‘Wages Payable – Payroll’ account. You could even get creative and setup a bank rule to automatically code these payments for you!

Xero released a short video you should all watch to help learn the new process: 


Employee Notes

Another feature Xero has released is the ability to store comments or information for employees, in the new ‘Notes’ tab of an employee’s details.

All notes here will be time and date stamped and only viewable by Payroll Administrators. Coming soon will be updates to the Files feature which will let you save files against your employees.

Refreshed Payroll Overview Screen

A newly-refreshed Payroll Overview screen will highlight items requiring your attention, whether they be leave requests needing an answer, or draft pay runs requiring processing.

In the coming months there will be further changes to the look and feel of screens in the Payroll module of Xero.

Coming Soon

Coming soon to Xero are changes to:
• Leave Application and Approval Process
• Employee & Organisation Setup; and
• Employee View in Payroll

If you’d like more information, please visit the official Xero blog announcing the changes here, or contact one of our Certified Xero Advisors.

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