Getting Started with Xero and Payroll

A few steps ahead of your integration with Xero will make your Xero and Payroll connection go much smoother. First, in order to properly map your Xero accounts in your Payroll account you will need to set up a few accounts within Xero, prior to mapping. Here’s how:

  • Sign in to your Xero account
  • Go To Settings- Chart of Accounts
  • Click “+ Add account”



  • You will need to create at least 3 Liability/Expense accounts if you want to lump your taxes as a total. If you prefer to break them up you will need to create accounts for each tax you want separate.
  • For the example here we will lump them together. We are also using GIFI codes for our code numbers, but you can use any code you choose. NOTE: Business Plan accounts will only accept numeric codes when mapping.
  • Create the following:
  1. ACCOUNT TYPE: Liability




  2. ACCOUNT TYPE: Expense




  3. ACCOUNT TYPE: Expense




  4. Optionally, you can create the following as well:
    Liability - Payroll Clearing
    Liability / Expense - CPP-EI
    Liability / Expense - Income Taxes
    Any benefits / deductions oe employee specific accounts you want to track separately.

 

Next: you will need to set any special accounts/rule you want in Payroll to pull through to your GL in Xero. You will need to set these up in PaymentEvolution prior to mapping your Xero. These could include custom pay rules (Benefits/deductions) or special employee GL within the employee settings.

After you have created all your accounts within Xero and all your additional GL codes (for employees or rules) within Payroll, please follow the steps in this guide to properly map your accounts, and send payroll info to Xero.

https://paymentevolution.zendesk.com/entries/22143483-Xero-Online-Accounting-integration 

 

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