Home – New Forums Money matters XERO’s new payroll system is a real pain

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  • #979229
    Jervis
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    I’ve switched to Xero’s new payroll system and seen my productivity take a real dive when processing the accounting. How has everyone else been coping? Am I the only one struggling?

    Here is my procedure for processing the payroll:
    http://procedureus.com/procedures/24/payroll-in-xero/

    Does anyone have any tips for shortening it.

    I’m most concerned about the step where I create my own “Spend Money” transaction. This was recommended by Gael at the Xero customer support team. All I wanted to do was reconcile the Xero-generated Super Payable against my imported bank transaction!

    Cheers,

    Jervis

    #1112946
    MyGreatIdea
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    I’m not far enough along to employ anyone yet, so haven’t used the Payroll.

    But, doesn’t the amount set aside for Super simply go to a Super Payable Liability account and get paid once a quarter? So there should only be a Spend Money transaction once a quarter?

    Instead of creating a draft invoice to enter your payrun into accounts, can you set it as a recurring invoice and each week simply change the total amount when you approve it?

    Just some thoughts…don’t know if they’re possible.

    Wendy :)

    #1112947
    Jervis
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    It would be great if I could hook it up to recur like that and just change totals as appropriate.

    And yes, I can pay my super per quarter so there would be 4 times a year (times how many different super companies we need to pay)

    The largest problem is the separation of the spend money (which is manual) from the original set of super liability transactions (which were auto generated). You don’t have that same ability to trace through and see exactly which invoices your bank transaction paid off.

    The recurring invoice may have the same problem. Unless that invoice has some link back to the Pay Roll section individual pay run items, we again have severed the link.

    So far there have been some benefits with the new system (Auto calculation of PAYG, auto generated end of year group statements) but the accounting side has been a very manual process, and not a straight-forward one.

    Cheers,

    Jervis

    Couple It, post: 126090 wrote:
    I’m not far enough along to employ anyone yet, so haven’t used the Payroll.

    But, doesn’t the amount set aside for Super simply go to a Super Payable Liability account and get paid once a quarter? So there should only be a Spend Money transaction once a quarter?

    Instead of creating a draft invoice to enter your payrun into accounts, can you set it as a recurring invoice and each week simply change the total amount when you approve it?

    Just some thoughts…don’t know if they’re possible.

    Wendy :)

    #1112948
    MyGreatIdea
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    Have you tried sending a request through their help desk?

    When I first started using Xero I sent three questions through in the first couple of weeks and all were answered within 24 hours. Worth a try if it will save you time in the long run.

    Wendy :)

    #1112949
    Rhys
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    Jervis, post: 126081 wrote:
    I’ve switched to Xero’s new payroll system and seen my productivity take a real dive when processing the accounting. How has everyone else been coping? Am I the only one struggling?

    Here is my procedure for processing the payroll:
    http://procedureus.com/procedures/24/payroll-in-xero/

    Does anyone have any tips for shortening it.

    I’m most concerned about the step where I create my own “Spend Money” transaction. This was recommended by Gael at the Xero customer support team. All I wanted to do was reconcile the Xero-generated Super Payable against my imported bank transaction!

    Cheers,

    Jervis

    Hi Jervis,

    Not sure how often you’re paying super – per payroll, monthly, quarterly? It seems from your post that this is where the issue is – but all of the super related steps (steps 6 – 8) are just plain wrong (did Xero support really tell you to do this?)

    Your options are:

    1. Pay the super manually from your bank account, let the trx feed into your accounts automatically, then allocate the payment to the super payable account (or still better set up a bank rule). The Xero part will take you a few minutes once a quarter (or once every time you pay super), the time consuming part is logging into the websites of however many separate super funds your employees belong to and entering super details by employee. So, option 2 . . .

    2. What I do is upgrade my Xero account from medium to large. Yes it costs me an extra $15 a month but I recover that many times over in saved time. At the end of the quarter I select all super accrued for the quarter and generate the payment from Xero – this pays the super funds and does all the reporting. June super for 6 staff (5 super funds) took me less than 5 minutes. One of my team does this for a number of our clients, typically takes 5 mins (once a quarter remember) even if the client has 10 or 20 or more employees.

    Some months ago I wrote a blog post on this.

    I have a list of things that I thing Xero does need to improve, this is definitely not one of them!

    Cheers, Rhys

    #1112950
    Marc D
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    Hi,
    Just to add to this thread. Its not necessary to log in to each individual super fund to pay supers. Most of the super funds run a clearing house where you can use one fund (usually your default fund) for all entry and they will pass the payments one to the other funds.

    If you have less than 20 employees you can use the super clearing house run by Medicare. I use this for many of my clients and is my preferred method as I don’t want to give the private super funds info about my clients employees the employees didn’t really agree to whereas the government knows all this anyway. Takes five minutes if that once setup.

    Hth

    Marc

    #1112951
    Jervis
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    Couple It, post: 126119 wrote:
    Have you tried sending a request through their help desk?

    When I first started using Xero I sent three questions through in the first couple of weeks and all were answered within 24 hours. Worth a try if it will save you time in the long run.

    Wendy :)

    Hi Wendy, I’ve only posted this question after contacting xero support. The procedure was written after talking to them, and once they had a look at it they said that is how to do it, no automatic method.

    #1112952
    Jervis
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    Rhys, post: 126136 wrote:
    Hi Jervis,

    1. Pay the super manually from your bank account, let the trx feed into your accounts automatically, then allocate the payment to the super payable account (or still better set up a bank rule). The Xero part will take you a few minutes once a quarter (or once every time you pay super), the time consuming part is logging into the websites of however many separate super funds your employees belong to and entering super details by employee. So, option 2 . . .

    Cheers, Rhys

    Hi Rhys, This is what I wanted, and it is what I do:

    – Make the super payment from my bank account
    – Import that transaction
    – attempt to reconcile against the super payable account

    Except that final step: reconcile against the super payable account isn’t available. When I reconcile, I don’t see any of the super payable entries to match against. But when looking at the super payable account I can see a whole list of them ready to be reconciled.

    So for me, that final step of reconciling directly against the super payable account is what I’m after. Is there a trick to getting it to show up in the “Find and Match” screen of the reconciliation?

    #1112953
    Jervis
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    Rhys, post: 126136 wrote:
    Hi Jervis,

    .. then allocate the payment to the super payable account (or still better set up a bank rule).
    ..

    Cheers, Rhys

    I just re-read what you have written. I can understand what you are saying here now. It is creating a new spend money transaction from within the reconciliation screen. And you can of course make a rule for this.

    This is the best method, and I will set up a bank rule. Thanks for suggesting a faster way.

    I was coming from the old “Pay Run” section (as opposed to Pay Roll) and it put the super payments into my accounts payable where I could directly reconcile each one. I guess that was what I was hoping for again.

    Cheers,

    Jervis

    #1112954
    Jervis
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    Marc D, post: 126149 wrote:
    Hi,
    Takes five minutes if that once setup.

    Hth

    Marc

    Thanks Marc, looks like a good tip. Will be looking into this.

    #1112955
    Dardee
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    Jervis, post: 126242 wrote:
    Hi Rhys, This is what I wanted, and it is what I do:

    – Make the super payment from my bank account
    – Import that transaction
    – attempt to reconcile against the super payable account

    Except that final step: reconcile against the super payable account isn’t available. When I reconcile, I don’t see any of the super payable entries to match against. But when looking at the super payable account I can see a whole list of them ready to be reconciled.

    So for me, that final step of reconciling directly against the super payable account is what I’m after. Is there a trick to getting it to show up in the “Find and Match” screen of the reconciliation?

    There isn’t anything to match against. All you are doing is manually entering the payment to the “Superannuation Payable” account (this is the account used in the Xero default chart). This payment should contra the monthly / quarterly totals put into this account each pay period.

    #1112956
    MyGreatIdea
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    Dardee, post: 126315 wrote:
    There isn’t anything to match against. All you are doing is manually entering the payment to the “Superannuation Payable” account (this is the account used in the Xero default chart). This payment should contra the monthly / quarterly totals put into this account each pay period.

    Agree with Darren…and if you are trying to reconcile the payment made against the amounts allocated each week through Payroll, then you are just double checking something that doesn’t need to be done.

    Wendy :)

    #1112957
    nominal
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    Rhys, post: 126136 wrote:
    At the end of the quarter I select all super accrued for the quarter and generate the payment from Xero – this pays the super funds and does all the reporting.

    Does Xero actually generates an ABA file to send to the bank to automate the payments or something else?

    With a thread subject like that I could hardly resist posting lol

    Payroll is a real pain in many systems when you try to make it work for all businesses and for all kinds of employees. The trick is to create a payroll system that does not work for all businesses but works GREAT for the businesses that it fits.

    #1112958
    Rhys
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    nominal, post: 126407 wrote:
    Does Xero actually generates an ABA file to send to the bank to automate the payments or something else?

    With a thread subject like that I could hardly resist posting lol

    Payroll is a real pain in many systems when you try to make it work for all businesses and for all kinds of employees. The trick is to create a payroll system that does not work for all businesses but works GREAT for the businesses that it fits.

    Hi Uri,

    It sure does. The user has to complete a direct debit authority, and once the payment is created they have to enter a security code (delivered to them via SMS). But yes the process is fully automated.

    cheers, Rhys

    #1112959
    Catherine-Xero
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    Thanks Rhys for the tips further up on recording super!

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