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AU Payroll: Pay Run - Calculate wages based on Employee start date

Started by Tim Muirhead in Payroll Feature Requests | Under Consideration

Xero Payroll does not calculate wages based on the employees start date. If your employee starts halfway through a pay run/ pay period, a manual adjustment of their hours and tax will need to be done.

For example:
1. We use a monthy pay cycle that ends 28th of each month
2. We have setup a new employee, set the start date as 5th November 2012
3. We have setup employee with annual salary, based of 40 hours work week. 4. When we do a pay run, xero calculates the employee worked 23 days worth of hours, instead of 18. It has thus NOT taken into account their start date, but used the entire month.

I can work around the problem by adjusting the number of hours after doing a pay run, but this is clearly undesirable and error prone (especially as wage costs are a large part of our business and getting these wrong is costly)
Official Xero Reply
Hi Gregory - Faydra is spot on here. If employees start part way through a pay period, the hours in the pay run can be manually adjusted. If the accruals in the pay template have been set up to accrue based on ordinary earnings, they will adjust automatically. Otherwise you can manually override the accrual in the pay run by clicking on the leave type, selecting ‘No’ to calculate leave accrual and then entering the number of hours that need to accrue.

Quenby S (Community Manager)