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Xero Payroll: no longer need to create a draft bill when processing a pay run

Yesterday, Xero released a much-anticipated update to payroll.  From now on, transactions from payroll will seamlessly flow through to and impact the general ledger immediately – instead of having to create a Draft Bill.


Xero have added a new Wages Payable Account field within payroll setting to record the net wages payable amount of each pay run.  This allows you the benefit of keeping your wages payable separate to accounts payable transactions.


Reconciling your payment of wages will now require you to allocate the transaction to your wages payable account, instead of allocating to the payroll bill.

To assist you in learning the new process, watch this short video demonstrating the change.


It is recommended to check your payroll settings prior to processing your next pay run, in most cases this should be set up for you. If you require any assistance in doing this please don’t hesitate to contact one of the HTA Team.


Employee Notes

You can now include notes for employees.  Notes could include emergency contact details, record of important conversations or anything else you wish to record under an employee.  All notes are time and date stamped and only accessible to payroll administrators.

Click here for review further changes to Xero Payroll.

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