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UK payroll - Monthly calculation based on annual salary split by 12

At the moment there doesn't seem to be a way to pay a monthly employee a basic monthly salary without the hourly rate changing to reflect the number of working days in the month. Please can there be an option to pay a monthly employee a basic 12th of their annual salary each month and the hours per month are set to the average of a 12th of their annual hours so that the hourly rate for overtime etc stays the same each month.

Thank you.

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Elaine Hardy shared this idea  ·   ·  Report…  ·  Admin →
delivered  ·  AdminKelly Munro (Community Manager, Xero) responded  · 

Hi everyone, we’re pleased to share that we’ve now released working patterns to all UK organisations that use Xero Payroll.

You can now enter more information about employees’ working patterns to support leave and earning rates calculations and save you time. You’ll be able to:

  • Create or select from working pattern templates
  • Add working patterns manually or using the template
  • Setup multiple weeks of a working pattern

Being able to set up to 13 weeks in a template means you’ll be able to accurately reflect employees’ that may work differing hours through weeks in a month like you’re after here. We’ve shared a few videos on YouTube that’ll help guide you through the change 😊

Thanks for all your engagement and sharing with us on the idea here.

Show previous admin responses (3)
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  • Linda Carrington commented  ·   ·  Report

    My payroll reviewer is querying why the rate is varying. It doesn't fit that someone on an annual salary is seeing fluctuations in their monthly pay (and rates shown on their payslip).

  • Helen MacEwan commented  ·   ·  Report

    HI
    I was surprised to find that XERO does not have this function. In other systems you can at least put in the hours x the amount and therefore put in 1 hour x 1/12th of the salary which works perfectly.
    Will XERO be looking to add this in future at all please ?
    We were looking to move two payrolls over to XERO but this is now our sticking point . We are staying with SAGE for now .
    Our workers would not understand the hourly rate changing each month so we cannot use it.

  • Yetunde Sogunle commented  ·   ·  Report

    This is a standard with other payroll softwares. Xero is the only payroll software that I've come across so far which has salaried employees' monthly hours and hourly rate fluctuate from month to month. Employees end up asking why their hourly rate keeps changing.

  • Luke He commented  ·   ·  Report

    Can you please put a function to lock a monthly timesheet as well?