This is part of our Payroll and STP Phase 2 series (Chapter 5 of the Xero tutorial hub):

• Lesson 1: Setting Up Xero Payroll and Connecting to the ATO
• Lesson 2: Adding Employees to Xero with STP Phase 2 Details
• Lesson 3: Running Your First Pay Run in Xero
• Lesson 4: Superannuation and Auto Super in Xero
• Lesson 5: STP Phase 2 Pay Items and Leave Categories in Xero
• Lesson 6: End of Year STP Finalisation in Xero

Once your employees and payroll settings are set up, running a pay run itself is fairly quick.

1. Start a new pay run

Choose the pay period and Xero will pull in each employee based on their set pay template.

2. Check hours and earnings

Adjust hours, overtime or leave taken for the period before finalising, especially for employees not on a fixed salary.

3. Review before you post it

Check the totals for wages, tax withheld, and super look right before posting the pay run.

4. Report through STP

Once posted, Xero reports the pay run to the ATO through Single Touch Payroll, usually on the same day.

Xero’s official YouTube channel covers running a pay run: watch the official Xero tutorial. Our registered BAS agents can run payroll for you if you would rather it was off your plate entirely.