What does Xero Payroll do?
Xero is cloud accounting software. Its Australian payroll product brings employee pay, leave, payslips and payroll reporting into that accounting workflow. Employees can use Xero Me for timesheets, payslips and leave requests, so hours captured directly in Xero already have a native route to payroll.
Where it fits
Consider it when your business keeps its accounts in Xero and wants payroll alongside them. timepilot adds a review route for paper, scans and spreadsheets your team still uses outside Xero Me.
What to check first
Check Australian payroll availability, your subscription and employee setup. Existing Xero timesheets need reconciliation before adding externally reviewed hours; two capture routes should not create two payments.
Xero’s Australian payroll overview. Checked 9 October 2026. This is a product overview, not a hands-on performance test.
Three matches make the difference.
Employee
Link the timepilot Employee explicitly to the selected Xero organisation’s payroll identity.
Earnings rate
Confirm the rate is assigned and compatible with the employee. A rate existing in the organisation is not enough.
Payroll calendar
Check period dates and employee calendar assignment together. Calendar existence does not prove a historical or locked period is writable.
Keep the period in view.
Weekly crews, fortnightly payroll
A weekly sheet can cross a payroll boundary. Keep each date in the right earnings-rate and calendar context rather than exporting an unexplained fortnightly total.
Different work, different rates
An ordinary shift and overtime may need different categories. Check the employee assignment and resolve rate ambiguity before approving the hours.
Source. Review. Payroll.
Review the source
Check dates, breaks and hours against the original paper, PDF or spreadsheet.
Fit the payroll period
Resolve employee identity, earnings rate and the correct calendar before approval.
Compare before transfer
Inspect existing entries and writable states for the exact selected dates. Reconcile uncertain delivery before retrying.
Keep existing payroll protected.
Xero Payroll AU distinguishes Draft, Approved and Completed timesheets. Approved and Completed work stays locked; unknown states or uncertain date eligibility stay blocked. Add-only is the default. An explicit replacement must be limited to the selected employee, dates and earnings scope.
Corrections after approval require another review. An uncertain delivery must be reconciled before retrying. Pay calculation and finalisation remain in your payroll system.
Scope and setup requirements
- Xero Payroll in an Australian organisation. Accounting and payroll in other regions are separate.
- Authorised payroll-business access and explicit Employee links.
- Verified category assignments, existing entries and writable payroll states.
- Australian payroll only, separate from Xero accounting.
- Current-period verification is required; historical backfill is not assumed.
- timepilot approval does not approve a Xero pay run.
Your questions, answered.
Is this the CSV or Excel hand-off?
The file workflow has its own guide. This page explains the direct payroll beta and the employee, earnings-rate and calendar decisions it needs.
Does approval here approve payroll in Xero?
No. Reviewing and approving hours in timepilot is separate from Xero approval and pay-run finalisation.
What about completed timesheets?
Completed and Approved timesheets stay protected. A direct transfer must not automatically reopen or unapprove payroll.
Provider background
First-party product references, checked 9 October 2026. Workplace images are illustrations, not customer endorsements.