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AU Payroll: Support for overseas employees taxed as AU residents

Can we please add an ability to add a new employee who is still an "Australian Resident for Taxation Purposes" but residing overseas for twelve months? Can't presently add an international address.

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Nerelle Foster shared this idea  ·   ·  Report…  ·  Admin →
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  • Craig Eddy commented  ·   ·  Report

    We have some 35 overseas contractors who are not subject to AUS tax & HR laws & entitlements. Their entitlements are not required to be reported to ATO. Specifically, their leave entitlements are based on the laws of their resident Country. However we need to manage their entitlements; including leave entitlements. Currently these are being maintained independently of Xero and, as a result, we are looking at alternate payroll software to Xero.

  • Michael Jeon commented  ·   ·  Report

    Urgent Enhancement Request: Payroll Management for Overseas Employees

    Dear Xero Product Development Team,

    As a tax agent advising clients who utilise Xero for their business operations, I wish to bring to your attention a critical feature gap in Xero's payroll functionalities—specifically, the management of payroll for overseas employees.

    Considering that Xero's pricing is positioned above competitors like QuickBooks, it is reasonable for users to expect robust functionalities that simplify compliance, particularly with the Single Touch Payroll (STP) Phase 2 requirements.

    QuickBooks Online has set a commendable standard by implementing features that enable the management of employees based internationally with compliance ease.

    They provide options to configure payroll settings by country, aligning with the foreign employment income types as mandated by STP Phase 2.

    More on their approach can be found here: [QuickBooks Update on Foreign Employee Information](https://quickbooks.intuit.com/learn-support/en-au/help-article/payroll-compliance/update-foreign-employee-information-stp-phase-2/L6Kk614Ib_AU_en_AU).

    Given the premium pricing of Xero, it is imperative that such essential functionalities are not only matched but also exceeded. The ability to efficiently manage global payroll within Xero would significantly enhance the value offered to your users, ensuring compliance and easing administrative burdens.

    We urge Xero to prioritise the development of these capabilities. The businesses we represent rely heavily on Xero for their accounting needs, and the addition of these features would greatly assist in managing their international operations more effectively.

    Thank you for considering this enhancement, which we hope to see implemented at the earliest opportunity.

    Best regards,
    Michael