You have been using Xero for your organisation for some time now. You are on top of the basics! It’s time to step up in streamlining your processes and start using more of Xero’s functionalities.

Employee Leave Management

It is a new payroll year, and it is a great time to set up and process employee leave entitlements in Xero.

Start using Xero’s employee leave management functionality.

Employers have a legal obligation to manage employee leave entitlements properly and to keep employee records for 7 years. Click here for more details about employer obligations.

Why use Xero’s leave management function

  1. If you are already using Xero Payroll to process pay, it’s just another step to start using Xero to manage your leave. We have to manage this properly and keep records – it is best to process all payroll details in one place – in Xero!
  2. Using a separate spreadsheet? It can easily be lost. – We have worked with many organisations that have been using separate spreadsheets to manage leave records and the file is lost on someone’s computer. The treasurer has left and has not given over the spreadsheets.
  3. Single Touch Payroll (STP) compliance. From 1 July 24, payroll payments for leave are to be reported to the ATO via STP. Xero processes this automatically when leave is processed correctly in Xero.

How do I get going with using Xero’s leave management functionality?

There are several steps in getting ready to use Xero for leave management.

For the management of leave to work in Xero the following four aspects must be in place and operating properly:

  1. Payroll Settings – the appropriate leave options must be set up in Xero
  2. Employee leave records – the appropriate leave accruals and opening balances for each leave type need to be set up for each employee.
  3. Payrun Leave accruals – accruals to be accrued each payrun, and
  4. The leave request, approval and payroll processing must be in place and understood. Each time an employee takes or plans to take leave, a leave request is to be submitted and approved in Xero, preferably using Xero Me.

The first three aspects are the responsibility of the Payroll Administrator.

The correct processing of leave requests is the responsibility of all users.

Here are some links to Xero’s support pages.

NB you must already be logged into Xero to access these support pages

Set up employee leave: Here are some links to Xero’s support pages.

NB you must already be logged into Xero to access these support pages

Please click here if you would like some more personalised support and training to get leave management going in your organisation Xero.