Xero Payroll Integration (Australia)

 

Overview

 

Manage your staff information in one place and use a simple, quick process to send payroll data from Loaded to Xero with Loaded's two-way integration with Xero Payroll.

As a hospitality business owner or manager you will love this integration because you can: 

• Create staff members in Xero straight from Loaded
• Link staff members and sync staff member information between Loaded and Xero
• Export key pay-run information (dates, staff members & wages) from Loaded to Xero
• Compare payroll wages between Loaded and Xero

This article will cover:

1. How to connect Loaded to your Xero account
2. How to sync employee information between Loaded and Xero
3. How to add a new Pay Run in Loaded
4. How to use Loaded's Pay Run workflow to finalise your payroll in Xero

 

Connect Loaded to your Xero account

 

Connecting your Loaded account to your Xero account is the first step to using Loaded's integration with Xero Payroll.

1. Open the Company Settings page: click your name in the top right corner > Account > Company Settings > Time & Attendance tab
2. Set the Payroll system to Xero Australia
3. Click "Connect to Xero"
   
   
   
   
   
4. Select the Xero company you want to access from the dropdown list, then click "Allow access"
   
   
   
   
   
5. Select the Xero company you want to connect your Loaded company to (it will be the same company you selected on the previous page):
   
   
   
   
   
6. You will be redirected to the Time settings page and will see your Loaded account is now connected to Xero payroll:
   
   

 

Sync staff member information between Loaded and Xero

 

Link and sync your staff member information to ensure accuracy between Loaded and Xero and avoid updating information in two different systems.

 

Link a staff member to Xero

1. Open the staff member you want to link, open the payroll tab then click "Link Employee to Xero"
   
   
   
   
   
2. This will open a list of your staff members set up in Xero so find the staff member you need and click "Link". Hint: use the search bar if you have a big team.
   
   
   
   
   
3. Once the staff member is linked, you will see their information from Xero in the right-hand column:
   
    

 

Sync staff member information between Loaded and Xero

 

Syncing staff member information is an easy way to make updates in Loaded and Xero, without needing to open Xero.

How does it work?

1. Click "Sync All" to sync all the information either from Loaded to Xero or Xero to Loaded (hint: hover over the left or right of the button to sync from, or to, Loaded)
2. Alternatively, hover over the grey arrows between the columns to copy the information from one to the other - you can either copy from Loaded to Xero, or Xero to Loaded.
3. You can edit any of the staff member information in the left-hand column (you can't edit the information in the right-hand Xero column). 
4. Clicking "Refresh Employee Fields" will pull the information currently in Xero for that staff member into the "Employee Information in Xero" column.
5. Make sure to click "Save" to save any changes you make on this page.
   
   

 

 

Create a staff member in Xero from Loaded

 

If you have a staff member set up in Loaded but not in Xero, you can create that staff member in Xero without leaving Loaded. Read our staff members article for more details on creating staff members in Loaded.

How does it work?

1. The staff member must have the following fields entered in Loaded:
   • Personal Tab:
     • First name & last name
     • Birthdate
     • Address 
   • Payroll Tab:
     • Payroll - Payroll Calendar (linked from Xero)
     • Tax Declaration - Residency Status
     • Tax Declaration - Income Type
     • Tax Declaration - Tax Scale Type
2. Open the Loaded staff member record, go to the "Payroll" tab then click "Link Employee to Xero"
   
   
   
   
   
3. Scroll to the bottom of the dialog and click "Create New Employee in Xero" to automatically create the staff member in Xero using the details entered in Loaded.
   
   
   
   
   
4. You'll see the created staff member now linked to Xero from Loaded.
   
   
   
   
   
5. You can see the created staff member in Xero by heading to the "Employees" page under the Payroll section of your Xero account. Make sure you check the assigned start date in Xero to avoid any hiccups during the pay-run process.

 

Use Loaded Pay Runs to simplify your payroll in Xero

 

A Pay Run is the concept in Loaded that consolidates staff members’ pay rate data (wages and shifts worked) for a specific pay period. A Pay Run organises the data so it is ready to sync with Xero to finalise payroll for that period.

A Loaded Pay Run corresponds to a Xero Pay Run for the same time period and Loaded Wages for the period correspond to Xero Earnings.

Before you start the Pay Run process:

• Check you have completed the mandatory fields in the Employment tab and Tax tab in Xero for each staff member.
• Check all shifts have been approved, and you are happy with the total hours & pay in Loaded's Punches by Staff report for the time period of the pay run you are going to complete.

 

Create a Pay Run in Loaded

1. Make sure you have the correct Pay Frequency set up in Xero*: Payroll > Payroll Settings > Frequencies. Click "Add" and follow the instructions if you don't have the Pay Frequency set up.
   
   
   
   
   
2. Add a Pay Run in Loaded: Time > Payroll > Pay Runs and click "Add New Pay Run"
   
   
   
   
   
3. Select the start date for the Pay Run from the dropdown - this will pull a list of pay periods based on the Xero Pay Frequencies you have set up. 
   
   
4. Enter the payment date for the Pay Run and click "Add"
   
   
   
   
   
5. This will create a Draft Pay Run in Loaded, and a corresponding Draft Pay Run in Xero.
   
   

*Xero Pay Frequencies: click here for the Xero help article

• A Pay Frequency tells Xero and Loaded how often you complete payroll, and therefore how long the payroll period is. Once the Pay Frequency is set up, then you can go straight to step 2 for future payroll periods.
• In Xero, employees can only be added to one Pay Frequency e.g. Weekly or Monthly
• In Xero, you can only create one draft Pay Run per Xero Pay Frequency at a time.
• In Loaded you can only create one draft Pay Run at a time to prevent any confusion with payroll periods in Xero.

 

Sync Pay Run information between Loaded and Xero

 

Review your Pay Run information in Loaded so it's simple to finalise in Xero.

1. Open the Loaded Pay Run: Time > Payroll > Pay Runs > Edit
   
   
   
   
   
2. Sync staff members' wage data:
   • Click "Sync All Wages" to send the Loaded wage data for all staff members to Xero
   • Or review each staff member one by one, and click "Sync" to send the Loaded wage data for an individual staff member to Xero
     
     
     
     
     
3. When you are ready click "Finalise in Xero" to be directed to your Xero account and finalise the Xero Pay Run with the data sent from Loaded.
   • The "Earnings" values in Xero represent the wage data sent from Loaded - you will see the total at the top of the page, and a value for each employee in the table below.
   • Note the earnings value does not include the time of unpaid breaks recorded in Loaded.
     
     
     
     
     
   • Loaded creates an Ordinary Time Earnings Pay Item in Xero for each pay adjustment line. Click on an employee's name to see this breakdown.
     
     
     
     
     
   • Leave types: these are set up and managed in Xero - read more in Xero here. 

 

Current Constraints

• Loaded does not currently support calculating superannuation for Junior staff members depending on whether they have worked more or less than 30 hours. This is something you need to calculate in Xero.
• Loaded does not currently support automatically calculating superannuation or workers' compensation for staff members, this should be handled in Xero.
• Pay rates for junior staff members (under 21 years of age) that are set based on Pay Classification are being calculated inconsistently. Until this is fixed, we recommend using the 'Manually Set' option for the pay rate type in the Job tab of the staff member in Loaded. Read this article for more details.

• Certain pay items are created in Xero with the 'accrue leave for this earnings rate' option unchecked. This means leave balances are accruing at a lower rate than expected. This issue does not impact Casual staff members as they do not accrue leave. Staff members this affects are those who are:

  • Full-time or part-time,
  • Paid using an hourly rate, and
  • Accrue leave based on Ordinary Earnings Time in Xero (rather than receiving a fixed amount each pay period).

 

FAQ

1. I can't see Payroll > Pay Runs in my left-hand Loaded navigation menu:
   
   Make sure you have set Xero AU as your payroll system in the Company Settings page, and then connected your Loaded account to Xero. 
   
   
   
2. How do I delete a draft Pay Run in Loaded?
   
   You can't delete a draft Pay Run in Loaded, instead open Xero and delete the corresponding Pay Run there, then it will be deleted in Loaded.
   
   
   
3. I'm having trouble creating or editing a draft Pay Run in Loaded:
   
   
   • Check all staff members have a start date assigned in Xero (staff members with no start date assigned in Xero will not appear in a Loaded draft Pay Run)
   • Check the staff member has not be deselected in the Xero draft Pay Run (see the Included column). If they staff member is deselected, you will need to select the tick box and then link the staff member in Loaded again in the Payroll tab of the staff member record.
     
     
     
4. What do I do if Loaded says a staff member is "Excluded from Pay Run"?
   
   
   • Make sure the "Included" checkbox is selected in the draft Xero Pay Run for that employee:
     
     
   • Check all the required details in the "Personal" and "Payroll" tabs are completed for that staff member in Loaded. 
   • Once you've checked the above, refresh in Loaded and you should see the staff member included in the pay run.

 

Disclaimer:

Loaded is designed to be used as a business tool to help you manage your hospitality business. We do not guarantee that by using Loaded you will be compliant with legislative requirements, including labour laws, wage requirements, and other regulatory obligations. We recommend that you seek professional advice for any concerns around legislative compliance. 

The information provided in this article was accurate and up-to-date at the time of writing, but for the most recent changes and updates, please check the relevant piece(s) of legislation.