📽️ Check out the video here: Setting up for timesheet sync with Xero

Overview

If you are using Xero for your payroll, timesheets can be transferred from ShiftCare to Xero via API to process payroll.

The initial step is to create pay groups in ShiftCare that align with the Earnings Rates you have created in Xero.

Note: Before, you go any further, please ensure that you have access to your Xero Payroll module and have your credentials ready because they will be required in the steps below.

📓 If this is the first time you're using Xero for payroll and you haven't already used Xero to run payroll you should first check the following settings in Xero:

If you have already used Xero for payroll then please follow these steps. To get started, let's set up the following:

  1. Sync Xero Pay Items in Pay Groups

  2. Configure Pay Groups with Xero Pay Items

Sync Xero Pay Items in Pay Groups

To access Pay Groups click the Account drop-down menu and then Pay Items subheading. Finally, click the next level subheading Pay Groups. This will Display the pay groups configured within your account.

Note: If you are visiting this page for the first time, you will notice that we have already created a Pay Group within your account. Feel free to edit or delete it - it has been assigned to all of your employees.

📽️ watch this section of the video

Now click on Actions button and Sync Xero Pay Items, which you can find in the top right corner of the current view of ShiftCare.

This will now redirect you to Xero's website, where it will prompt you to log in with your credentials. (Note: See help articles on Xero's website for assistance with Xero)

Xero will ask you to confirm which organisation you desire to allow ShiftCare access to, select the correct company and it will allow access for 30 mins. Now it will redirect you back to ShiftCare and you will again see the Pay Groups page.

Configure Pay Groups with Xero pay items

Once the sync with Xero is complete, the next step is to tell ShiftCare how to use these pay items for different day or time, for example, you might have pay item in Xero called Ordinary Week hours or Saturday hours etc. If you are unsure about Xero setup and pay items, please consult your finance department before proceeding. 

Finally, let's align Xero Pay Items to ShiftCare pay item within each Pay Group.

Click Edit next to the existing pay group you wish to set up.

Alternatively, add a New Pay Group by clicking the Actions drop-down menu, and click Add Pay Group

The tabular data of the Pay Group should now be able to be edited. Under the heading Xero Pay Items click the drop-down box for the entry you would like to edit and select the relevant Xero Pay Item. 

Note: Here you can edit all aspects of a Pay Group: Day of Week; Time; Effective Date; Xero Pay Item; Rate; and Code. But we are only focused on Xero Pay Item in this article.

When finished editing Pay Group, click Save.

During the sync with Xero a new pay group called Xero will be created. This can be archived.

(Optional) Configuring additional Pay Groups

Xero uses a flat structure when it comes to Pay Items and forces Payroll officer to set Pay Items directly to individual staff members. This can become complex when you have too many staff or various levels within your organisation. In such cases, ShiftCare can help by using Pay Groups and group related pay items to each Pay Group

For example, in our above example, we aligned all pay items within a single Pay Group. However, some organisations have staff with different pay levels or pay groups. Therefore, we can easily extend our Pay Groups by simply creating another Pay Group and aligning with Xero pay items within new Pay Groups.

Configuring Xero to connect with ShiftCare

For comprehensive instructions on the configuration in Xero to run payroll please see the details provided by Xero Support central.xero.com

📽️ Check out the video here: Setting up for timesheet sync with Xero

Xero payroll settings

In Xero, you control the payroll settings by clicking on the company name in the main menu and selecting the settings option.

Within the organisation settings, you'll find the Payroll settings.

Set pay run Calendar in Xero

From the payroll settings page, under the Calendars tab, you need to setup how often you intend to run payroll, this is typically weekly or fortnightly. Click the add button and follow the prompts.

Add earnings rates / pay items to Xero

From within the payroll settings, the next step is to move on to the Pay Items tab.

Here you can add the pay items - ordinary item earnings, overtime, and allowances.

As Xero controls the pay rules and therefore the $ amount paid this should be set up in Xero as what Xero calls Earnings Rates. The different Earnings Rates can then be assigned to different days of the week or times of the day in ShiftCare under ShiftCare's Pay Group system.

⚠️ Please note: The "Type of Units" should be set to Hours (capital H, no spaces after) to sync between ShiftCare and Xero.

Screenshot of Earnings Rates in Xero.

Earning rates set up for Xero

The earnings rates should be set up to cover each of the different bands or groups of earning rates such as levels or skills, for example, Level 1, Level 2 etc or different roles and then break that down to describe days of the week and times in the day. The actual times will be set in the pay groups in ShiftCare (see Manage pay groups and pay items).

An example of the earnings rates might be:

Pay group 1

Pay group 2

SW L1 PP2 Weekday Day

RN1 Weekday Day

SW L1 PP2 Weekday Night

RN1 Weekday Night

SW L1 PP2 Saturday

RN1 Saturday

SW L1 PP2 Sunday

RN1 Sunday

SW L1 PP2 Public Holiday

RN1 Public Holiday

Your earning rates might look like this:

Adding allowances

For a detailed guide on setting up Allowances please see the article: Setup allowances.

Edit an existing pay item or earning rate in Xero

Should you need to edit an existing earnings item in Xero, from the Pay Items tab where the earning rates are listed, you'll see each item has a menu dots on the right hand side. Clicking this will allow you to edit the items.

Employee set up in Xero

Once you have created the different Earnings Rates in Xero, you should also set up a pay template for your employees under their profile in Xero.

To access the pay template of an employee, in Xero's menu navigate to: Payroll > Employees

Add Employee and set up their profile in Xero

If you don't yet have employees in Xero, you can add them by clicking the Add Employee button and following the steps.

Under the employee's profile, the Employment tab, you should set their start date (this should be before their first pay run).

Also, select their Payroll Calendar and also their Ordinary Earnings Rate.

Employee Pay Template

📽️ watch this section of the video

In this step, Xero wants you to assign the relevant earnings rates and allowances for the employee.

Draft timesheets in Xero

When the timesheets sync from ShiftCare to Xero a draft timesheet will be created in Xero based on the Pay template associated with the employee.

The draft timesheets can be found in Xero under the menu Payroll > Timesheets

Each employee who has successfully synced from ShiftCare to Xero will have a draft timesheet listed.

Opening the draft timesheet will allow you to review the pay groups/earnings rates on a given date as well as any allowances.

If you need to adjust the timesheet you can delete it here, adjust the shifts in ShiftCare and re-do the sync.

If the details are correct you can approve the draft timesheet to progress through to payroll.

Running payroll in Xero

Once the timesheet has been approved, you can go to Xero's menu and select Payroll > Single Touch Payroll

Here you have the opportunity to review the rates applied to the hours in the timesheet and tick the employee to be included in the payrun.

Further Reading


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