NZ Payroll - Adjust hours automatically in 1st pay run to recognise employee start date
Xero defaults to full pay period hours for a new employee in the 1st payrun even if the employee start date (already entered into Xero) is part-way through a payrun. This doesn't make sense and is too easy to overpay a new employee in this way, if a manual override has not been done. Ideally, Xero would calculate the expected hours for a salaried employee based on the start date, but another idea would be to flash up a warning before finalising a payrun with employees that have a start date listed within the pay run period.
Katherine Ward
shared this idea
Hi everyone, thanks for your feedback on having Xero automatically adjust hours in a pay run if the employee starts or leaves part way through a pay period.
We released work patterns to all NZ payroll organisations in August 2024. If an employee has been assigned a Regular week work pattern, their first and final pay runs will be automatically pro‑rated based on their start or end date in the pay period.
For employees still set up on “Days and Hours”, Xero doesn't have enough information about which specific days they work, so automatic pro‑rating doesn’t occur in those cases and a manual adjustment to the hours in the pay run will be required.
For more details on how to set up work patterns please see our Xero Central article.
We really appreciate everyone who voted and commented here. We hope this helps make first and final pays more accurate.
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Kendall Palmer-Frecklington
commented
I agree