Your PaySauce account can be integrated with Xero to send payroll journals across effortlessly after every pay run.
Connecting to Xero
To connect to Xero:
Click on Company Settings from the menu on the left hand side
Select Payroll Journals from the list on the right hand side
Tick Enable Payroll Journals
Click the Pending button on the right hand side
Use your Xero credentials to start the connect
Select the Xero file to connect to
Click Allow Access
Once connected, there are additional settings:
Export format: We currently only support Payroll Journal as an option for export
Journal Status: Select if you want the journals to be posted in a draft state that you approve in Xero, or automatically post as approved.
Configuring GL Code Mapping
Your chart of accounts can be synced at any point from Xero by clicking Sync GL Codes.
Once synced, you can selected where each expense and liability should be posted to.
Gross Wages Expense: This is the total cost of the wages. This includes gross earnings such as hourly wages, penalty rates, allowances, etc.
Super Expense: This is the total cost of superannuation.
Reimbursement Expense: This is the total cost of all reimbursements made to employees.
Net Wages Payable: This is the total payment owed to employees. It is the Gross Wages minus and PAYG withheld and deductions.
PAYG Payable: This is the total amount of PAYG that is owed to the ATO. As the net wages and PAYG will be paid together, you may want your Net Wages Payable and PAYG Payable to be the same account.
Super Payable: This is the total amount of superannuation that is owed to employees.
Deductions Payable: This is the total amount of funds that have been deducted and are to be paid to someone other than the employee.
Reimbursement Payable: This is the total amount of reimbursements owed to the employee. As any reimbursements are paid in the same payment as Net Wages and PAYG, you may want this to be the same account as Net Wages Payable and PAYG Payable.
The set up will depend on how your Chart of Accounts are configured. If you are unsure, please speak to your bookkeeper or accountant.
Exporting Payroll Journals
When a pay run is finalised, there will be the option to generate and send a payroll journal.
To export a Payroll Journal:
Click on Pay from the left hand side
Select the pay run you want to export
Click on Generate Journal. You may need to scroll down to the bottom.
Review the preview that appears
Click on Send
FAQ
I created a new account in Xero and it is not appearing in PaySauce
I created a new account in Xero and it is not appearing in PaySauce
If you are trying to configure your GL Code Mapping and a new account is not appearing in PaySauce, you may need to click on Sync GL Codes. This will pull through the latest Chart of Accounts information from Xero.
If this doesn't fix the issue, then you will need to:
Make sure the Xero connection is active. In Journal Configuration above, you should see a green connected on the right hand side.
Make sure that the account was created correctly in Xero.
Please note that Xero does not send through certain accounts, such as those tied to bank accounts.
I require further customisation in the GL Code Mapping
I require further customisation in the GL Code Mapping
At present, PaySauce offers a simple GL Code mapping options. You may need to send the journal as a draft and then edit in Xero before approving.
Do I have to export the journal?
Do I have to export the journal?
All pay runs will include a preview of the journal. You may use this information to create your own payroll journal. This could be useful if you do need to split certain expenses into multiple accounts.