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US Payroll - States release schedule

Started by Catherine Walker (Community Manager) -   in Using Xero Business

Seamless Payroll is now available for US customers of Xero from December 9! In order to ensure the best customer experience possible, we’ll be staging our rollout State by State so be sure to register here on our website for updates. In order to be completely transparent, the priority order for States has been determined mostly by the numbers of Xero customers based in that particular State.

We can adjust our priorities to some degree, so if you have feedback for us, we’d love to hear it below. Unfortunately we can’t provide detailed timeframes on the release of each State, or group of States, rest assured however, we’re working as hard as we can to fulfill all States as soon as possible.

Typically, when States are released full calculations and manual filing reports will be available. Automated Taxes and Filings will be available if not at the same time then very soon after. Of course, W2’s and other Taxes and Filings will not be available until the end of the 2014 financial year.

Available now (Federal and state calculations) for the following States;

  • Federal - Pre-filled downloadable form 941 now included
  • California - Calculations done, manual tax deposit slips and pre-filled downloadable quarterly forms DE 9, DE 9C now included
  • New York - Calculations done, manual tax deposit slips and pre-filled downloadable quarterly forms NYS-45, NYS-45-ATT, MTA-305 now included
  • Virginia - Calculations done, manual tax deposit slips and pre-filled downloadable quarterly form VA-16 now included
  • Utah - Calculations done, manual tax deposit slips and pre-filled downloadable quarterly forms UT-941, 33H, 33HA now included
  • New Jersey - Calculations done, pending taxes and filings
  • Florida - Calculations done, pending taxes and filings
  • Texas - Calculations done, pending taxes and filings

More states on their way!

Don't worry – we're working hard to quickly add payroll to more - here's a list of the States you can expect to see soon.

Next up:
  • Colorado
  • Illinois
  • Ohio
  • Tennessee
  • Georgia
  • Wisconsin

After that:
  • Washington
  • Oregon
  • North Carolina
  • Maryland
  • Massachusetts
  • Hawaii

Following the successful release of the above States, we are currently ranking the remaining States in the following order

  1. Pennsylvania
  2. Minnesota
  3. Arizona
  4. Connecticut
  5. South Carolina
  6. Alabama
  7. Missouri
  8. Kentucky
  9. Michigan
  10. Oklahoma
  11. South Dakota
  12. Rhode Island
  13. Indiana
  14. Arkansas
  15. Louisiana
  16. Montana
  17. Nevada
  18. New Mexico
  19. New Hampshire
  20. Vermont
  21. Iowa
  22. Idaho
  23. Wyoming
  24. Maine
  25. Mississippi
  26. Kansas
  27. Nebraska
  28. Delaware
  29. District of Columbia
  30. North Dakota
  31. West Virginia
  32. Alaska

As always, if your State is not as high on the list as you’d like it to be, gaining customer traction is a sure fire way to ensure it’s accelerated up the list. We’re working very hard to bring your State online as soon as possible, so check back regularly for updates and discussion from our partners and customers alike.

Use the 'get email updates' option to receive an email when new comments are posted on this thread.
Its nice to see Tennessee up the list, its usually neglected but is a no income tax state on wages so payroll is pretty simple.

Avery Dorland  

North Carolina here.. ho hum.. So many good payroll systems but none of them support us yet. Right when I'm about to start payroll too. Boo. ;-)

Andy Ciordia  

I've subscribed to the update email. Would love to see Nevada hit that list since we are also a no income tax state (easy).

Nathan Scott  

I know we're probably low on the list, but please put Kansas on that list as soon as you can. . . thanks for an awesome product and keep up the great work!

Brandon Smith  

Just to let anyone subscribed to this thread know, I've updated the main post above to provide a full prioritized list for the roll out of each State.

Catherine Walker (Community Manager)  

I had the crappiest 2nd grade teacher. First she told me that Pluto was a planet, it's not. Then she told me that Hawaii was a state, apparently it's not. Thanks Xero!

Marco Montes  

Great! Just some feedback...many companies in Maryland and Northern Virginia--especially those of us in the Beltway area--would not be able to take advantage of payroll unless we can also process payroll for employees residing in Washington, DC. So if you would like those MD and NoVa companies to use payroll, I really recommend bumping Washington DC up much higher on the list! As a MD-based company, I'd be all over Xero payroll, but I can't use it until I can do payroll for my DC-based employees and contractors, too.

Ali Oliver-Krueger  

@Marco - our bad, not your 2nd grade teacher - indeed we'd accidentally left Hawaii off the list - added now to the 3rd group. No specific timing yet but we'll update with those details as we get closer. Thanks for spotting the mistake!

Catherine Walker (Community Manager)  

I would love to see Michigan move up the list!

Jared Farmer  

Lets get Mass rolling :)

Thanks guys for the hard work!!!

Shawn Fletcher  


Isidore Fondwi  

Can we pay 1099 employees via direct pay through Xero payroll?

Heidi Bond  

When you launch Minnesota, I'll take your Payroll service immediately and am spreading the word here in our state. Glad to see its #2 on your 'and then' list. Hope it would get done sooner than later. Surprised Hawaii beat it out.

Jeremy Gavin  

Any general timeline for the rollouts? For example, will Mass be more like a month from now, or a year from now? Picking a payroll system now, which is why I ask. :)

Sally Bowers  

Hi @Heidi, we don't support 1099s in payroll today. Xero supports 1099 through the normal vendor process.

@Jeremy, we're working hard!

@Sally, good question. We'd love to get through all States CY14, but there's no guarantees.

Stuart McLeod (Xero Staff)  

So - I may be stating the obvious here, but if you don't go live before Jan 1 then you pretty much miss the entire year. I'd be willing to switch, but it does me no good to have to deal w/ 2 different payroll systems for tax year 2014. BTW, I'm in NC.

Jeremy Roth  

Hi @Jeremy, we understand the reticence, and if that's the case then no problem. However we do have opening balance capability, so switching at half year or at the end of a quarter should not be impossible. As we've said, our focus is on ensuring the States where Xero has the most customers. However, we'll be working as best we can to roll out everywhere else.

Stuart McLeod (Xero Staff)  

North Carolina here too. Right now we're manually copying all the data over from Intuit Online Payroll (formerly PayCycle) each month. Oh what I'd do to have that all happen automatically. I second Jeremy's comments about needing it by year-end too. We switched once mid-year and quite frankly it was not worth it.

Tobias McNulty  

Lets go Minnesota, Lets Move Up The List.
Spread the word.

Keith Emmel  

WA here. The main site said Payroll support was coming in December and that wasn't true. I am downgrading or canceling my account. May revisit the decision after WA support is added.

Jason Nottingham  

Sorry you feel that way @Jason. We've been communicating our payroll release plans via roadshow and other means for a while now. But we'll update this thread when WA is released.

Stuart McLeod (Xero Staff)  

Vote for TEXAS! Please hurry and get me away from Quickbooks! :)

Ryan Wilson  

+1 for moving North Carolina up the list :), would love to do away with another system and manual entry.

Tim Morris  

It is great to see Ohio in the next batch. I am ready to transition, but I must have payroll.

Eric Lester  

+1 for TEXAS!

Does anyone know if the second tier of states will be released before 12/31?

John Benbow  

Oh please, pretty please...Wisconsin higher on the list. I have been waiting for Xero payroll forever! So excited.

Stacy Hollmann  

Any updates on the rollup for the next states (IL specifically)?

stephan tran  

Indiana please. IN Will start using as soon as I can. Thanks!

Thomas Chenier  


Jess Duarte  

Will this payroll option include house allowance and ss offset clergy for faith based orgs?

Bryan Roberts  

Hi @Bryan, payroll already supports clergy housing, no problems.

Stuart McLeod (Xero Staff)  

Looking forward to CO going live so I can ditch QB. :-)

Christian Macy  

Any idea when TN will be available?

Cindy Gray  

When will Kansas be available?

Ryan Moore  

This is one of the most frustrating things about online accounting programs, and I've used them all. I realize any system can't be everything for everyone, but there are some basic things that need to be met before it should be called a full-fledged accounting system.

Take Invoicing and payroll as two examples. Payroll is a classing accounting software function, and invoicing online is becoming more prevalent, especially recurring billing/ auto- payments as the wave of the future - due to the subscription model and SAAS becoming fairly standard across nearly every industry.

Right now, the ONLY platform that handles recurring auto billing/payments is freshbooks. QB can't do it, not sage, not free agent, kashflow, outright (godaddy), zoho, cheqbook, clearbooks, or any other online accounting platform... including Xero.

I'm not talking about sending an invoice on an auto schedule, I'm talking about one invoice, client checks auto pay at first payment, and future payments are made automatically via credit card or bank account/ach.

Wave is a stellar application but their invoicing is horrendous. Payroll is ok there, at least they support the entire US and canada, including local tax calcs. But you can't print checks. Seriously? yes, ridiculous as it is.

I SO want to move my accounts to xero, but not being able to run payroll for my state (PA) prevents me from doing so.

Integration with Freshbooks is nice, but a real accounting service should have auto recurring billing - just like xero app does itself. The tech is there, through authorize.net, paypal, stripe and several others. There's almost no reason not to have this - especially when your own pay service system can handle it for people subscribing to xero service on a monthly basis.

I do beta testing for several apps currently, and write as an editor for technorati. I beta tested wave, among others, did interviews with media for them, and even spoke with their potential VC's to help them get funding. That was three years ago when invoicing and recurring payments was on their "road map." In my experience, "road map" means we take your suggestion and file it under "pay no mind."

No need to respond back, but please do let me know when payroll is ready in PA and recurring auto billing is ready. Then i'll look at this again.


Craig Grella  

I am encouraged by the prospect that Ohio is on the "short list" for payroll updates. Is there any place/way to get an ETA on that though? The new year has started and I would love to make a change before too much time goes by and I have to mess with a lot info to transition. When Ohio, when?!?

Kelly Green  

@Stuart opening balance doesn't sound quite sufficient. It would be much better to be able to designate specific line items that sum up to the opening balance. For example, Paychex makes one debit for all taxes and then I split that into lines to reflect the appropriate constituent amounts/accounts. You should be able to look for account names and line item descriptions with words like wages, salary, Tax, Medicare etc and suggest line items to make things easier. (or perhaps provide an integrated text search on line items so that the user can find the items faster using their own keywords).

Patrick Heck  

Hi @Kelly, we're making sure that the users in our first 6 states are having a really solid experience first, and that means releasing filings and automatic payment for taxes ASAP. Then we'll move on to the next states.

@Patrick, opening balances is a little light on at the moment, we acknowledge that and are working to beef it up, particularly as customers will want to move over at the end of first quarter and half way through the year as we release more states. I would expect that we'll have something more comprehensive in the first half of the year.

Stuart McLeod (Xero Staff)  

Thanks. One quick simple question. If we are a business in VA but have employees who live in both VA and DC I assume we will need to wait till you add DC to the payroll system. Any estimate when this might be?

Craig Zelizer  

so i cannot use any payroll features because address is not supported (vermont)?
how is pay roll done manually? general journal entry?? when vt is supported how do i reconcile previous payrolls? can this be done so that we can print 941's right from xero? we will be able to use this feature to actually print 941's right???? this saves so much time and prevents huge mistakes! Thanks

Chris Townsend  

So I know that you're not committing to any exact dates on Payroll release, but do you have a ballpark on when we could expect Ohio to be up and running? Are we talking a few weeks, a couple of months...? I ask because we are about to choose a payroll company, and we need to make a decision on whether we can wait for Xero or if we should just sign-up with ADP to get going right away.

Joe Hohman  

I'm looking forward to Michigan and Pennsylvania moved up the list - I'd LOVE to convert our company's entire payroll with offices in both states into Xero for the year, and will when it's released, but the quicker the better.

Bob Orchard  

Merged: NC Payroll Tax Calculations

I am currently trying out Xero as a replacement for our QB Premier accounting system.

During setup of the payroll service, I get a message that payroll calculations are not currently supported for North Carolina. This is kinda a deal breaker.

Is there any date in mind with NC tax calculations will be supported?

Anthony Quinn Jr  

@Anthony Payroll hasn’t been rolled out fully in the US yet, as we’re doing this in stages.

So you can keep updated with the rollout, I’ve merged your thread with the Release Schedule.
You’ll see that North Carolina is quite high up on the list - but we aren’t able to give a date for when Payroll will be ready in each State. As soon as more info is available we’ll update this thread - thanks!

Brittany H (Community Manager)  

Really looking forward to Automated Taxes and Filings for CA! We will definitely use this feature as soon as you do.

Kevin Halpin  

Lord I'd love to see Iowa sooner rather than later. :|

John Pinkerton  

+1 WA Washington

It looks like Washington slipped a bit, hopefully it will move back up. When I was told that it would be available in WA in 2014Q4 I naively thought I could start using it at the beginning of the quarter and e-file would be ready by the end of the quarter.

Is there any way we can use parts of the payroll system even if the calcs and e-filing are not available yet? We are already doing manual payroll and know how to do those tasks so it would be nice to be able to use the Xero payroll tool for paycheck subs and posting into Xero while waiting for the full release.

James Stiles  

Will switch from quickbooks once Kentucky is added.

Josh Buesking  

+1 for Massachusetts

Neil Sotirakopoulos  

When is the ETA on payroll tax filing and payments for New York? I would love to switch over to Xero payroll but I need the support of full service processing for taxes. I am currently using Sure Payroll for the tax filing and automatic tax payments.

Stacy Luft, EMBA  

Just to let those tracking this thread know, I've moved Wisconsin up from position 22 on the yet-to-be-scheduled list to the 'Next up' list.

Catherine Walker (Community Manager)  

I'm in California and really looking forward to automated tax deposits and filings. Having access to Pay Runs alone is just about enough rope to hang myself. The numbers calculate consistently with my old Intuit Online Payroll account, but without tax deposit submission or a good report to work off of to do them manually, it's going to be a real challenge to start using the preliminary Xero Payroll feature set until the other features come into place.

I'm currently trying to make the leap to Xero's payroll from Intuit for the beginning of the year and am fumbling my way through adding up numbers from the closest thing to a tax liability report I can find (Payroll Activity Summary - which is awkward for this purpose and the export to .xls doesn't include numbers for some reason) so that I can make manual tax deposits, but this leaves a lot of chance for human error.

I know dates cannot be promised, but if I knew that tax deposits are on the brink of release I would hang with the new Xero Payroll setup, otherwise I would fallback to Inuit now and come back to Xero the quarter after deposits and filings are implemented.

Kenny Johnston  

Throwing in my +1 for Texas. :)

Aaron Geiser  

Companies addressed in the Washington/Baltimore Corridor have thousands of employees that commute from states outside of DC. This area is now grown to include overlapping states of Pennsylvania, West Virginia, Maryland, Virginia and DC. Please get these these states up and running as soon as possible. You may think that the demographics of Maryland, Pennsylvania, and West Virginia won't increase your business opportunities, but this is so very wrong as the workforce is mobile here. We are a very large commuter area. By not recognizing the importance of the commuter workforce to the large corporations, you are effectively cutting off companies from joining you who would otherwise jump.

Thank you.

Jennifer Dominiski  

I completely agree with Jennifer Dominski, and would add that it's not just true for large corporations, but for small businesses, too. I'm a small business, and I've got personnel in MD, DC, and VA. So until all three of those are up and running, I can't use Xero Payroll.

Ali Oliver-Krueger  

+1 Michigan! :-)

Jody Fisk  

What's wrong with letting some us manually setup our payroll tax situation in states that are nowhere close to being added? I tried doing payroll yesterday for the first time and was disappointed that I was programmatically locked out once I found out that the state wasn't supported.

Is their really that much behind the scenes voodoo going on that I couldn't put in tax percentages in a table on a form and roll on from their until you fully implement it on your own?

Nathaniel Snitzer  

+1 for Missouri

Justen Beasley  

+1 for Minnesota!

Rob Yedlin  

Hi Folks,

Thanks for the hard work on payroll, but it's killing me not having that service for our business here in Colorado yet.

I upgraded to the larger Xero account so we could have payroll functionality (we use Xero for everything) but without it I'm having to write my employees checks and make notes that I will have to issue them all 1099s for this FY.

CO was originally slated to be in the first group of releases, if I'm not mistaken, months ago. I see it as the next on the list, but I'm not going to start Q2 without a functioning payroll system.

Is there any update on the Colorado release? Otherwise I'll probably have to start using something else.

Remember–under-promise, over-deliver.


Drew Haugen  

Drew Haugen, I am with ya. We need it in Colorado. Please let us know when it is coming!

Dale Zink  

Any updates on when Illinois will be available?


Moses Hohman  

Any guidance on next up states being available?

It's been four months since the first round. I run a seasonal non-profit and would love to have payroll in Georgia by May 1st so I can rid myself of Quickbooks.

Regards, Tom

Tom Andrews  

I second this - if you can tell us an approximate date per state (mine is SC) I would appreciate it. I signed up expecting the ability to run payroll - it is not very clear in the process that not every state is supported.

I don't understand - it seems like this is ample time. Quickbooks online payroll supports SC and this is where I am coming from.

Ken Carnesi  

Can we please get an update? This is getting kind of ridiculous...

I'm specifically looking for a Wisconsin launch date.

Ira Koplowitz  


Andrew Collings  

Hi everyone - by way of an update our blog post from earlier in the month outlines what the payroll team are working on now.

There are no firm dates yet for the States beyond those currently live, and the focus is on getting those working solidly before moving on. Your support to show demand for the next States is still key so while delivering payroll for all States is a long-term goal we definitely want to hear from you.

Catherine Walker (Community Manager)  

A release today:

- Customer's tax filing obligations are listed on the Taxes & Filings page.

- The “Taxes & Filings” has a new tab called History. Customers will find all completed items here once their action date has passed.

- Tax payment deposit slips can be downloaded for the following states: California, New York, Utah and Virginia.

- Customers can now download the following pre-filled PDF quarterly tax forms for manual filing: Federal (941), California (DE 9, DE 9C), New York (NYS-45, NYS-45-ATT, MTA-305), Utah (UT-941, 33H, 33HA) and Virginia (VA-16)

Catherine Walker (Community Manager)  

Shout out for Minnesota!~

Change Lane  

Any way I can help out with the programming or any way we can manually add the tax information on our own?

Jason Deutsch  

Any update on CO, IL? We have been waiting for these features for over 6 months. A bit ridiculous that you haven't rolled out anything else since the initial announcement.

There are a ton of new startups being funded including Y grads who will gladly take our recurring income. Lets get this done Xero payroll team.


Ryan Gripp  

An update today - Texas payroll now available & an update on taxes and filings.
Read more here on our blog.

Catherine Walker (Community Manager)  

Thanks everyone for your comments and feedback. My name's Oliver and I'm now responsible for Payroll at Xero. The last thing we ever want to do is disappoint our customers and the teams are working as hard as possible to be able to offer payroll in Xero to more states this year. However, there are a whole bunch of things that we have to work on first to make payroll in Xero a truly beautiful experience for the states we currently support. I know this is disappointing for many of you but I will be keeping you as up to date as possible via the Community and Blog. Right now we have no immediate plans to expand our supported states in the short term and when this changes this forum will be the first to know.

Oliver Furniss (Xero Staff)  

Well this is disappointing to say the least. As a new user we chose Xero with the promise TN payroll was coming soon. Not happy!

Cindy Gray  

I don't want to pile on here, but I have to agree with Cindy. My account rep sold me on a cutover from QuickbooksOnline in September because "We are launching Xero Payroll this November which will be able to be run as of January 1, 2014." Fine, I figure that I can suck it up for 3 months - signed up and off we went.

Fast forward a bit and here we are in the 2nd quarter of 2014 and low and behold I find myself 6 months into MANUALLY processing payroll. MANUALLY calculating taxes due. MANUALLY initiating ACH deposits. I'm not sure if you've ever tried this but it's not fun.

I don't want to go overly negative here, but let me just say that I'm having a hard time imagining myself recommending Xero to anyone else at the moment.

Shane Ballman  

Two people asked me to recommend accounting software, I told them to steer clear away from Xero. Empty promises

Ryan Gripp  

When I first signed up I talked with Micheal and was left a strong impression that payroll was a done deal. Yesterday, when I was integrating I upgraded to premium so I could do payroll and THEN tried to enter my info. I was surprised when I found that I couldn't do WV, and now I find out that ONLY Alaska is below me. The final surprise is that I was told this morning that I can't downgrade for 30 days, costing me another $30. Not exactly a good way to start a relationship with a new customer.

Paul Turner  

Starting with NY and California might have been a mistake. Those two states have two of the most involved, complex income tax and regulatory structures in the country. After doing Federal, you might have considered picking off some "low-hanging" fruit with smaller states that have relatively simple payroll tax reporting requirements.

Brian Cohen  

We tried payroll...didn't even run a full batch because we just couldn't work around with a 5 business day requirement to post direct deposit. We will be back once Xero gets this to the 2 days as promised in the emails. Out $90....

Ryan Wilson