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Payroll with Xero
Setting up your Earnings Rates for Xero
Setting up your Earnings Rates for Xero
Kat McDevitt avatar
Written by Kat McDevitt
Updated over a week ago

Traffio uses Xero's Timesheets to integrate payroll. Timesheets are per-employee, and contain a certain quantity of earnings rates for every given day each week or fortnight.

Traffio calculates the earnings rates for you according to the EBAs, but some setup is required to correctly relay that information to Xero.

Your earnings rates in Xero will have to be set up according to certain guidelines to ensure they can be used on timesheets. Please follow the steps below.

Getting Started

Ensure that you have administrative access to your Xero account before moving forward. If you do not have access to Xero, please get in contact with your Xero administrator.

Setting up the rates

In Xero, please do the following:

  1. Click on your organisation name on the top left-hand corner. Select Settings, then click Payroll settings.

  2. Go to the Pay Items tab, followed by a click on Earnings if it is not already selected.

  3. Add all of your (penalty) rates and allowances to this list by clicking on the Add button on the top-right.
    ​
    - Xero only accepts Ordinary Time Earnings, Overtime Earnings and Allowances in the timesheets that Traffio will push through.
    ​
    - Each of these need a Rate Type of Rate per Unit.
    ​
    - Type of Units MUST be set to Hours, with that exact spelling and capitalisation. This may seem odd as allowances are not always hourly, but it is the only way to make Xero accept the timesheet without triggering errors.

  1. Once finished, return to your payroll cost centre in Traffio and click the Sync with Xero button to pull in all your rates.


​Ordinary Earnings Rates

For Traffio's payroll integration with Xero to work, it is important that your employees in Xero have an Ordinary Earnings Rate assigned. Xero will reject timesheets for an employee if they do not have one.

In Xero:

  1. Go to Payroll > Employees.

  2. Select an employee.

  3. Go to the Employment tab.

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

  5. (repeat for all employees)

Once you have completed that, open your Payroll Cost Centre in Traffio and push the Sync with Xero button, so that Traffio knows of the changes you have made.

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