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Payroll & expenses

Customer ideas for Xero Payroll, employees, expenses and using Xero Me

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Payroll & expenses

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  1. When a staff member has a HECS debt or other Student Loan selected AND is salary sacrificing - the Student loan amount is only calculated on the GROSS amount AFTER the salary sacrifice however when the staff member has gone to do their tax return, they have a tax bill because the ATO looks at the taxable income as an amount INCLUDING the salary sacrifice so via Xero not enough PAYGW has been withheld - can this be amended?

    5 votes

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    2 comments  ·  Payroll  ·  Admin →
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  2. Give the option of adding company sick pay entitlement, which counts towards sick leave, and then when company sick pay is exhausted, revert to SSP.

    10 votes

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     ·  1 comment  ·  Payroll  ·  Admin →
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  3. Payroll UK Student Loans
    Some employees can have Plan 1 and 2 at the same time. At present Xero payroll can only deal with 1 plan. The option should exist for an employee to select more than 1 Plan and the correct deductions be made.
    This is how repayments are allocated between Plan 1 and Plan 2 loans
    For the 2023/24 tax year the repayment thresholds are as follows:
    • Plan 1 loans: £22,015
    • Plan 2 loans: £27,295
    If you earn below £22,015 you will make no loan repayments.
    If you earn between £22,015 and £27,295 you will make…

    10 votes

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  4. Before posting a payroll, when you run the "Payroll Activity" report, include the leave entitlements about to be posted not just the pay items.

    So when you download a report to do a final check before posting payroll you can check ALL payroll activity not just half of it !

    2 votes

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    0 comments  ·  Payroll  ·  Admin →
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    Hi Kristen, appreciate you sharing in product ideas here. While this isn't something we have plans for I wanted to confirm you can currently check leave accruals by clicking on the employee's payslip prior to posting the pay run.

    Once the pay run's posted, before it's filed, you could run the report and find any issues, and revert it back to draft to make changes if necessary.

  5. It would be great to be able to stream leave approvals by team so only a team leader gets to see/approve their own team rather than everyone's leave applications

    10 votes

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  6. As an approver of timesheets i see there are couple of issues which can make the process water tight.

    1.Ability to see approved time sheets (siimilar to leaves). Currently once the timesheet is approved for an individual there is no way to check what has been approved

    2.Ability to run a report for all employees that have been approved or alternatively ability to allow access to certain reports to the approver.

    4 votes

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  7. Provide the functionality to receive leave requests by SMS notification.

    1 vote

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    0 comments  ·  Payroll  ·  Admin →
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    Thanks for sharing your idea with the community here, Rachel. I see it hasn't really picked up interest and with the ability for employees ti submit leave requests via the Xero Me app that is accessible from a mobile device we don't have any plans for developing SMS capability.

  8. Hello,

    I wanted to take a moment to share a suggestion that I believe could significantly simplify our payroll process. It involves the implementation of a bulk upload feature, which would allow us to handle payroll data in a more efficient manner. We will need a template that contains essential details for each employee. These details may include the employee's name, rate of salary, and various pay items relevant to their compensation. This would reduce the time and effort invested in processing payroll.
    Thank you,

    Best regards,

    4 votes

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    0 comments  ·  Payroll  ·  Admin →
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    Thank you for sharing and engaging with us about this on Product Ideas, team. While we understand wanting to see developments, as you may have recently read - We’ve been offering Pay Run to our Global Edition customers since 2011 to provide basic payroll functionality. However, over the years, we’ve focused our efforts on making solutions available which offer enhanced features and a deeper integration with the Xero platform, such as Xero payroll in AU, NZ and UK, we've also seen newer payroll solutions in regions available through the Xero App Store (such as Gusto in US). 

    With this focus, we’re making some changes to Global Pay Run to help you manage your payroll more effectively;

    - From 23 July 2025 Global Pay Run will become read-only. You'll still be able to see all your past payroll information, however you will not be able to process any new pay runs…

  9. Currently, for monthly employees, Xero does not take into consideration the fact that they have been set up to be paid the same amount each month, therefore the days in the month are meaningless from a pay perspective. Unfortunately, this means that the basis leave accrues on to work out how many hours a public holiday/personal/annual leave day should be when leave is entered is also meaningless. Instead of defaulting to 7.6 (or 8) hours/day leave taken, it does a calculation based on the number of working days in a month. So if someone is being paid on the basis…

    37 votes

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     ·  17 comments  ·  Payroll  ·  Admin →
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  10. New Employee start date is part way through a pay week. The New pay run does not recognise the start day and calculates an entire weeks pay.
    This requires manual calculation and double check if the pay run has been recalculated. Open to errors and over payment

    37 votes

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    5 comments  ·  Payroll  ·  Admin →
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    It's been a while since we've provided you with an update about this idea, so wanted to touch base

    We've reviewed your comments and can see the that this idea has been steadily gaining support.

    Whilst this idea isn't currently on our product team's roadmap, we're monitoring the activity and will continue to keep you updated along the way.

  11. Include a note section on employee timesheets to enable employees to note where they have worked/ how long they have worked at various locations.

    17 votes

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     ·  11 comments  ·  Payroll  ·  Admin →
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  12. Enable User Created Pay items to feed data into Pension filings and payroll expense journals. Currently, any additional pension pay items that aren't created by Xero automatically won't pull through to the pension file. The same happens for re-imbursements

    21 votes

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    6 comments  ·  Payroll  ·  Admin →
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  13. Client has just realised that they hadn't entered an IRD number into Xero Payroll details for one of their contractors on withholding tax. Xero Payroll allowed the submission of payday filing to go through without error or notifying the client of the missing information.

    6 months later, client is contacted by contractor to say IRD don't have any record of withholding income or tax withheld on behalf even though the details were submitted and tax paid on to IRD. Without the IRD number, IRD was unable to allocate it to the contractor's income records.

    I don't think this should be…

    1 vote

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  14. Are you likely to increase the number of employees you can have in Xero to more than 200? We don't want to move from Xero but may have to if the numbers can't be increased.

    5 votes

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    1 comment  ·  Payroll  ·  Admin →
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    Hi team, while we appreciate you raising the idea here, the cap of processing payroll for 200 employees is to prevent any issues with your user experience - Going over this could slow down the payroll function, and create difficulties when you run payroll reports.

    If you do need to process larger payrolls, we suggest taking a look at our third-party providers in the Xero app store that can serve your needs and handle larger payroll data.

  15. Payroll/Wages Payable Reconciliation
    It is quiet difficult in Xero to find out wages payable error done because there is no system of matching wages payment with the payroll journal at the transaction allocation stage.
    e.g. as we get the suggestions to allocate a payment received against an invoice, it should be similar with the wages.
    If there is any over/under payment it will be detected at the transaction allocation stage as there won't be any matching payroll transaction existing. This feature is there in MYOB. This is the only reason where I find MYOB better than Xero.
    Sometimes client does…

    5 votes

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  16. From the moment you post a payrun, and this can be 1 day or 10 days before payment is made, employees have access to their payslips. To pull an ABA from the payrun, you need to post the payrun first. I process payroll for over 30 business's. Part of that process, as I am sure it is for any agent or employee bookkeeper, you generally need to get an approval (even the filing for STP makes you verify that an authorised person has checked it). This approval is an email to the client with the payroll information (including ABA file)…

    8 votes

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    2 comments  ·  Payroll  ·  Admin →
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    Hi there, we appreciate you raised this a little while ago. This isn't something we have plans for in the near term.

    Not getting a lot of support from other members we’ll soon remove this from Product ideas. If it’s still highly valuable to you, welcome to start it again and see if it gets renewed interest.

  17. When go in to view/approve timesheets have the ability to set a default pay calendar to use (currently all pay calendars including archived pay calendars come up). And the pay calendar for last week (defaults to the current week which means need to scroll down and repeat each time you view/check a new employee). Not very time efficient

    6 votes

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  18. It was bought to my attention after using xero for over 2 years that depending on how you pay your staff using multipayment or individually that when you reconcile if your staff have access to contacts then they will see the payments made.

    This is a concern for me that they can see the amounts whether your reconcile as a bulk amount and allocate to them or a generic contact - if you use the cash coding area then xero creates a dummy payee called unknown which again can be seen by your staff with standard access.

    They can also…

    6 votes

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    Hi there, we appreciate you raised this a little while ago. This isn't something we have plans for in the near term.

    Not getting a lot of support from other members we’ll soon remove this from Product ideas. If it’s still highly valuable to you, welcome to start it again and see if it gets renewed interest.

  19. When downloading the individual payslip it would be nice if the PDF would say the persons name rather than the default filename of Payslip (1) etc
    Other payroll software such as Shape does this. Shame that Xero doesn't

    3 votes

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  20. I have different managers responsible for different employee timesheets so therefore I would really like the ability to authorise specific managers to employees. Am still using mostly paper timesheets because of the massive deficiencies in the XeroMe ones (think is one of the many reasons).
    I don't think its appropriate that anyone authorised can access all timesheets as it does nothing but create confusion and the potential to authorise the wrong ones. Also unnecessarily time consuming.

    Is it possible to please add some tickboxes/controls to remove this hurdle?

    27 votes

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    8 comments  ·  Payroll  ·  Admin →
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    Hey all, it’s been a little while since this was raised, so I wanted to check in.

    Payroll is definitely an area we know needs more permission controls. This is something our product teams are beginning to explore and do deeper research of.

    To help this idea gain traction, please share it with colleagues so they can vote for it too. The comment section is also open for all members to share how this feature would improve their Xero experience.

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