Enter your idea

UK Payroll - when the correct hourly rate is entered when setting up an employee, ensuring that it meets the requirement of the HMRC minimum / living wage, Xero should handle rounding in payroll calculations so that it does not create an unnecessary "under minimum wage notification". This notification means the calculation has to be checked, and additional work by adding an line adjustment to ensure the employee is not underpaid.

For example hourly rate £10.85. Hours worked 18.5. Total pay £200.725. Xero round this down to £200.72, which causes an "under minimum wage notification". In all other scenarios £200.725, would round up to £200.73. See picture "under rounding causing a minimum wage alert"

I do not understand why Xero cause this underpayment, when as the employer, I have entered information correctly.

Even when adding a line adjustment (see picture making adjustment) it doesn't necessarily adjust appropriately. It may inadvertently cause a over payment - which may only be pennies, but the old saying "if you look after the pennies, the pounds will look after themselves"

This disparity causes stress and anxiety - when surely the whole purpose of use Xero's software is to facilitate this aspect of payroll with confidence and surety. I have bought into Xero's software because I need to trust that my payroll is done accurately - this does not foster that confidence that Xero is trustworthy.

This needs an urgent fix.