To successfully reconcile your payroll payments with Xero you will need to complete the following steps; or you may also view the how to video linked <a rel="noopener noreferrer" href="https://www.youtube.com/watch?v=4ktbrBsQo38" target="_blank">here</a>.
1. Select&nbsp;Accounting&nbsp;&nbsp;&gt;&nbsp;&nbsp;Chart of Accounts&nbsp;&nbsp;&gt;&nbsp;&nbsp;804 Wages Payable – Payroll&nbsp;&gt;&nbsp;&nbsp;Select&nbsp;Enable payments to this account&nbsp;and then select Save.
2. Go to&nbsp;Dashboard&nbsp;&nbsp;&gt;&nbsp;&nbsp;Select the Bank Account&nbsp;&nbsp;&gt;&nbsp; Cash Coding.
3. Select all of the&nbsp;Wage Payments&nbsp; &gt;&nbsp;Type 804 into the top Account line. (This will pre fill all of the remaining wage payments to this 804 – Wages Payable Account.)
4. Click&nbsp;Save &amp; Reconcile Selected.
5. Now we need to create a Bill for the total Processing Fees that were paid, to do this:
Select&nbsp;Business&nbsp;&nbsp;&gt;&nbsp;&nbsp;Bills to Pay&nbsp;&nbsp;&gt;&nbsp;New Bill.
6. Enter the total value of the payroll payment in Qty (excluding any processing fees that have been paid)
Example $10,000 -&nbsp;&gt;&nbsp;Enter unit price as $0.018 (assuming the 2 PayRewards pts/$ option was selected)&nbsp;&nbsp;&gt;&nbsp;&nbsp;Select&nbsp;Amounts are Tax Exclusive&nbsp;&nbsp;&gt;&nbsp;&nbsp;Select&nbsp;Tax Rate GST on Expenses.&nbsp;&nbsp;&gt;&nbsp;&nbsp;Add&nbsp;reference&nbsp;eg. “Fortnightly pay run 17/11/2022.”
Click&nbsp;Approve.
7. Enter&nbsp;payment date as today’s date&nbsp;&nbsp;&gt;&nbsp;&nbsp;Paid From “804 – Wages Payable”&nbsp;&gt;&nbsp;Click&nbsp;Add Payment.
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To successfully reconcile your payroll payments with Xero you will need to complete the following steps; or you may also view the how to video linked .

1. Select Accounting  >  Chart of Accounts  >  804 Wages Payable – Payroll >  Select Enable payments to this account and then select Save.

2. Go to Dashboard  >  Select the Bank Account  >  Cash Coding.

3. Select all of the Wage Payments  > Type 804 into the top Account line. (This will pre fill all of the remaining wage payments to this 804 – Wages Payable Account.)

4. Click Save & Reconcile Selected.

5. Now we need to create a Bill for the total Processing Fees that were paid, to do this:

Select Business  >  Bills to Pay  > New Bill.

6. Enter the total value of the payroll payment in Qty (excluding any processing fees that have been paid)

Example $10,000 - > Enter unit price as $0.018 (assuming the 2 PayRewards pts/$ option was selected)  >  Select Amounts are Tax Exclusive  >  Select Tax Rate GST on Expenses.  >  Add reference eg. “Fortnightly pay run 17/11/2022.”

Click Approve.

7. Enter payment date as today’s date  >  Paid From “804 – Wages Payable” > Click Add Payment.

 

How do I reconcile payroll payments in Xero?