Xero has implemented changes in Payroll as the system was too convoluted. These changes took place on 18 August, 2014.
Previously, after posting a pay run, you would create a draft bill, and then the bill would be processed at the ‘Accounts/Purchases’ tab. At reconciliation the payroll run would be split according to each employees wages for that week.
Xero has now simplified this process by creating a new account ‘804 Wages Payable – Payroll’ . Payroll will now flow through to the general ledger immediately. Simplifying the whole process.
When the bank transactions are processed you no longer have to match those payments against the wages bills.
A rule needs to be created to code the payments to the 804 Wages Payable – Payroll account.
If you have any questions, please contact our office for assistance. For more information, please go to ‘Recent Changes to Xero’ at the ‘Help Menu’.