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Xero Payroll Update

Posted by: Eye on Books on 25 Aug 2014 | 1 Comment
At Eye on Books we always help our clients understand how Xero payroll works.

Related blog categories: XERO

Earlier this week Xero made a much needed change to the way Xero integrates into your profit & loss by getting rid of the “create draft bill” option.  This also means a significant change to the way you reconcile your wage payments on the bank reconciliation screen.

To help you guys, our fantastic clients, we’ve created a video to explain the changes.  I’ve also explained them briefly below in case you don’t have time to watch the video!

As always, if you have ANY queries or issues, please don’t hesitate to contact us.  We’re here to make your life easy!


There is no longer a need to “create a draft bill” after posting your payroll.  Xero will automatically post your wages and superannuation to the relevant accounts, and post your net wages to a wages clearing account;  804 – Wages Payable – Payroll.

This 804 account should be in your accounts by default.  IF YOU CAN’T FIND IT, PLEASE CONTACT US IMMEDIATELY!


When reconciling your nett wages, there is no “wages bill” to pay the wages against any longer.  Simply use the CREATE tab to code your wages directly to the “804 – Wages Payable – Payroll” account.  I’ve included an example screenshot below.  Notice the use of the employee name, and coding to the 804 account.  This should make reconciling faster & easier!!    


If you learn better by watching, you can listen to my dulcet voice below showing you exactly what you need to do.  Don’t forget to LIKE the video if you found it useful!

YOUTUBE - http://youtu.be/CdSqbNghrS8

VIMEO - http://vimeo.com/103863822

Xero Help

Finally here is the Xero blog announcing the new updates; Xero Blog: General ledger integration and other updates to Australian payroll


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