The first step in running payroll in Xero is to add a pay run. In this tutorial, we will cover how to start a pay run in Xero’s demo company.
Pay Runs in Xero Payroll
To get to the right area of Xero payroll:
- Go to Settings → Payroll in the main menu.
- Click on the Pay employees tab.
How to Add a Pay Run
In the demo company, you should see a history of pay runs that have been processed. Also, you should see at least one draft pay run. To start a new pay run, click on the + Add Pay Run button:
In the pop-up box that appears, you need to choose which pay period to use for your new pay run. Because there is already a draft pay run for the Fortnightly Calendar, you will not be able to start a new pay run for this pay calendar. Only one draft pay run can exist for each pay calendar at any time.
With this in mind, choose the Weekly Calendar from Select a pay period drop-down list. Click on Next when you are ready to proceed:
That’s all you need to do to start a pay run in Xero. On the next screen, you will see details of the pay run you just added:
From this screen, there are a number of activities you can perform to manipulate the pay run, including:
- Making changes to employee’s pays.
- Adding a payslip message.
- Posting the pay run.
- Deleting the pay run.
- Resetting the pay run.
- Viewing pay run reports.
To learn how to do each of those activities, see our free Xero payroll guides.