Updated January 19, 2023


We have released an update for Xero customers who were experiencing issues syncing contracted employees to Xero due to new STP Phase 2 requirements.

You can now choose the employment type for staff by selecting either 'Employee' or 'Contractor' from the staff member’s profile page.

If Contractor is selected, their timesheets will not be synced to Xero. This will prevent the bulk sync error when syncing timesheets if you have implemented STP phase 2 in Xero.

Issue description (for reference only)

This issue affects customers that have set up STP phase 2 compliance for contractors in Xero.

We are seeing reports from customers around their Xero sync failing with the error 'employee does not have an ordinary earnings rate'.

This mainly affects customers that have contractors set up in ShiftCare, and subsequently Xero. The new ATO STP phase 2 requirements state that you now need to set up contractors and employees separately in Xero.

The issue is that you cannot apply an 'ordinary earnings rate' to contractors as this is only applicable to direct employees. When we perform a sync from ShiftCare to Xero, it won't allow us to sync timesheets for contractors as they don't have an 'ordinary earnings rate' attached to their profile, and Xero will not allow you to create a timesheet for a worker that doesn't have an ordinary earnings rate.

As Xero has made it impossible to enter this information in contractor profiles, the sync is now failing for contractors and subsequently causing our bulk sync to fail.

We are currently looking into a solution as a matter of urgency but this may require some work from Xero developers to adjust the error checking for contractors during the sync process.

The current workaround is to sync timesheets one by one noting that you will not be able to sync contractor timesheets until this issue is addressed by Xero.

We will keep this article updated with progress and we apologise for the inconvenience this STP phase 2 requirement has caused.

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