Xero Payroll Settings – How to Edit a Deductions Pay Item

by | Apr 21, 2018

All Xero Courses $21.99

*Up to 87% off for a short time only!

If you need to edit a Deductions pay item in Xero, follow the steps in this guide to see how easy it is. In this tutorial, we will edit a deduction pay item in Xero’s demo company.

Pay Items in Xero’s Payroll Settings

To edit a deduction pay item, first go to the Pay Items tab of the payroll settings area:

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


How to Edit a Deductions Pay Item

On the Pay Items tab, you should see a number of pay items that have already been set up in the demo company. In the exercise, we will change the name of the FBT pay item. To do this:

  • Select Deductions on the left-hand side.
  • Click on the three vertical dots on the right-hand side of the FBT row.
  • Click on Edit in the drop-down list.


A pop-up box will appear allowing you to change some of the fields. For this exercise, we will change the Deduction Name of the pay item to Fringe Benefits Tax.


Click on the Save button when finished. You should now see that the name of the pay item has been changed.


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.

All Xero Courses only $21.99