31 Aug Why Use Xero Payroll
Historically payroll has always been something that is completed separate from your accounts, ready to be entered in manually at some point (or left to your accountant to enter at the year end) and holiday calculations have always been a bit of a nightmare.
But Xero have come up a with a new solution that is built into their existing online accounting software. If you are already using Xero (and if you’re not already using Xero – what are you doing?? Come and speak to us!), this is great news as it means everything is in one place and Xero payroll integrates with Xero accounting, which means no more manual entries.
Day to day payroll needs are all provided for with flexible earnings, deductions, benefits and reimbursement pay types all able to be entered onto payslips, P45s that can be produced easily, and holiday entitlement calculated automatically. Also at the year end, all P60s can be produced for employees at once, taking the headache out of payroll year end procedures.
Real Time Information is enabled to ensure you are complying with HMRC and is as easy as clicking a button at the end of a payroll run. Autoenrolment is also active within the payroll feature and allows you to automatically enrol eligible employees (for more information on autoenrolment please get in touch with us).
All sounds good so far right? Well Xero takes things a step further from being just a standard payroll portal, it also enables employees to be directly involved in their own payroll, saving you administrative headaches.
Employees can have their own log in to their employee portal using Xero Me (app available to download onto phone/tablet, or login from desktop) which enables them to view their own payslips, request time off and record absences (for example due to sickness). These can then be approved by management (who can approve other employee absences, without viewing any financial data themselves) or by others with the required permission levels. These absences are then deducted from the employee’s accrued holiday hours by Xero, which makes holiday and absence management much easier.
Taking this one step further, timesheets are now available, which means employees can submit their own hours, and again Xero will collate these for you and pre-enter them into the payslips for you.
So I suppose instead of the question being – why use Xero payroll, the question should be: Why not?
If you would like a demo of Xero payroll or to know more information on it, please get in touch with your adviser.
You can also see a quick video showing Xero payroll here: