Xero Payroll Settings – How to Add or Set Up Holidays

by | Apr 13, 2018

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When setting up payroll in Xero, you need to add public holidays that your employees are entitled to take. This is done in the Holidays tab in the payroll settings area. In this tutorial, we will use Xero’s demo company to set up a common public holiday: Christmas Day.

Holidays in Xero’s Payroll Settings

First, we need to go to the Holidays section of the payroll settings area:

  1. Go to Settings → Payroll in the main menu.
  2. Click on the Holidays tab.


How to Add a Holiday

If you are using Xero’s demo company, you should see that there are no holidays currently set up. To add a holiday, click on either one of the two Add Holiday buttons:


A popup box will appear allowing you to enter details of the holiday you wish to create. For this exercise, we will create the Christmas Day holiday:

  • Name: type in Christmas Day.
  • Date: choose the 25 Dec of the current year.
  • Add to Group: we cannot use this as we have not set up any groups.


Click on the Add button when finished. Christmas Day should now be included in the All Holidays section:


Holiday Groups

Now you how to add holidays in Xero payroll. Before you go any further, take a look at our tutorial on Holiday Groups. This is a much more efficient method of assigning holidays to each of your employees.

Mark Cunningham

Mark Cunningham

Xero Specialist | Udemy Instructor | Small Business Owner

I have been a company accountant for more than 20 years. I am now dedicated to empowering small business owners through my highly-rated and popular Udemy courses on Xero, bookkeeping and accounting.

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