In Xero payroll, you must set up pay calendars before you can process any pay runs. In this tutorial, we will learn how to set up pay calendars from the Calendars tab of the payroll settings area.
Calendars in Xero’s Payroll Settings
To get to the Calendars section of the payroll settings area:
- Go to Settings → Payroll Settings from the main drop-down menu on the upper left-hand side of your screen.
- Click on the Calendars tab.
In Xero’s demo company, we can see that two pay calendars are already set up:
- Fortnightly Calendar
- Weekly Calendar
If you are setting up your own business from scratch in Xero, you will not see any pay calendars here as none have been set up yet. With that in mind, let’s add a new pay calendar in the demo company to see how it is done.
How to Add Pay Calendar
As the demo company already has fortnightly and weekly pay calendars, we will create a monthly pay calendar. First, click on the Add button on the right-hand side of your screen:
In the Add Pay Calendar screen that pops up, enter the following information:
- Pay Period: choose Monthly from the list of options.
- Name: to keep with the naming convention of the other pay calendars, type in Monthly Calendar.
- Start Date: choose the date from which the first pay run should apply.
- First Payment Date: choose the date on which the first payroll payment will be made for this pay calendar.
Once you have finished, a write-up of the details you entered will appear at the bottom of the screen. Once you have reviewed the write-up and are happy to proceed, press the Add button.
Your New Pay Calendar
You new monthly pay calendar should now be listed with the existing weekly and fortnightly pay calendars. Each calendar should display information showing you when the next payment date is due and the period that will apply to the pay run.