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Setting Earnings Rates in Xero

Explains setting your earning rates within Xero

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Written by Traffio
Updated today

Traffio uses Xero’s Timesheets for payroll integration. Timesheets are created per employee, detailing their earnings rates for each day of the week or fortnight.

Traffio calculates earnings rates based on your EBAs, but some setup is required to correctly transfer this information to Xero.

To ensure the earnings rates are compatible with Xero's timesheets, you’ll need to set them up in Xero following specific guidelines. Please follow the steps below.

Note: Make sure you have administrative access to your Xero account. If not, please contact your Xero administrator.


Setting Rates in Xero

In Xero, please do the following:

  1. Click on your Organisation Name

  2. Select Settings

  3. Click Payroll Settings

  4. Select the Pay Items tab

  5. Click on Earnings (if it is not already selected)

  6. Click the Add button in the top-right corner to add your (penalty) rates and allowances to the list
    - Xero only accepts Ordinary Time Earnings, Overtime Earnings, and Allowances in the timesheets from Traffio
    - Each must have a Rate Type of "Rate per Unit"
    - Unit Type must be set to "Hours" (with the exact spelling and capitalisation)
    While allowances aren’t always hourly, this is the only way to avoid errors when syncing with Xero.

  7. Return to your Payroll Cost Centre in Traffio

  8. Click Sync with Xero button


Ordinary Earnings Rates

For Traffio's payroll integration with Xero to function correctly, it's essential that each employee in Xero has an Ordinary Earnings Rate assigned. Xero will reject timesheets for any employee without one.

In Xero:

  1. Go to Payroll

  2. Select Employees

  3. Select an employee

  4. Go to the Employment tab

  5. Ensure they have an Ordinary Earnings Rate set and saved

  6. Repeat for all employees

After completing that, go to your Payroll Cost Centre in Traffio and click the "Sync with Xero" button to update Traffio with the changes you’ve made.

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