Step 1.

Setup in Xero

Set up a Pay Calendar in Xero. The Pay Calendar dictates when a Pay Run can be scheduled for. Define Pay Items and specifically Earnings rates. Set up an Employee including setting a Pay Calendar. Create a Pay Run.

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Step 2.

Setup in Tidy

Re-authorise Tidy with Xero.

In the Xero Setup area under the Global settings click Disconnect if already connected.

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Step 3.

Then, reconnect to Xero, entering your Xero email address and password details when prompted.

This is necessary because Xero Payroll needs more access permissions than previously required.

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Step 4.

Configure Payroll settings in the Payroll tab under Xero in Global settings.

Standard Hours determines the maximum number of standard hours before a selected overtime rate starts.

Standard Hours Period determines that the maximum number of standard hours is counted on a per week basis, or the period defined by the Pay Run selected at the time of export.

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Step 5.

Earnings rules determine when and which rates will be used when exporting to Xero. Tick the appropriate day of the week and start and end times for which the rate rule applies. Then select the standard rate and the overtime rate to use whenever that rule applies.

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Step 6.

Configure Users in Global Settings > Users > Edit > Employment Contract.

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Step 7.

Map the Tidy user to a Xero employee. Optionally set an overtime rate to use for this user which will be used instead of the rates set in the Earnings rules earlier.

Export a Payroll Batch in Reporting > Payroll.

Filter the time entries to those only that match the period of the Xero pay run.

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Step 8.

Select the time writers to export.

Optionally filter the projects for which time is exported for.

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Step 9.

Select Export to: Xero Payroll.

Select the output Pay Run period. The Pay Run must have been created in Xero prior for it to show in this drop-down list.

Select whether to export to Draft or Approved timesheets. The Approved will only be available if enabled inGlobal Settings > Xero > Payroll.

Click the Generate button.

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Step 10.

Tidy will create timesheets in Xero for the period that matches the selected Pay Run. Then from within Xero, the timesheets can be selectively included in a Pay Run to create Pay Slips.

Note, you can later export more approved time to Xero Payroll. This must first be allowed in Global Settings > Xero > Payroll. If a timesheet already exists in Xero, Tidy will do it's best to take into account the number of standard hours already posted in the timesheet when calculating if overtime rates should kick in.