Xero Introduces New Payroll Service

payroll in xero2

For businesses already using online accounting services, it’s not hard to imagine the benefits of adding online payroll to the mix. Xero, a New Zealand-based international company now offering its cloud-based accounting services in the U.S., has just announced adding a payroll feature to its own software.

Payroll in Xero, as the new service is called, won’t be a separate feature. In fact, Jamie Sutherland, President, Xero U.S. says the new service is built as a part of the existing software.

“It’s connected. It was designed to work seamlessly together,” Sutherland says.

Payroll in Xero Features

Though payroll services are nothing new in accounting software. some distinguishing features set Xero’s new payroll software apart, according to the company. They include:

  • Special security to make sure employee information remains private.
  • No double-entries between the accounting and payroll solutions, payments made are automatically deducted on the accounting side.
  • Automatic processing of time off requests in employee apps.
  • Automatic calculation of vacation time to determine what is owed should an employee depart the company with time accrued.

payroll in xero

Xero Stresses Ease of Operation

The new payroll service will be included on all but a single introductory package of Xero’s software. A simple payroll tab will launch the payroll feature.

“That’s one hallmark of Xero. We want to make everything simple,” Sutherland explained.

In the U.S., the software is immediately available in California, Florida, New Jersey, New York, Utah and Virginia and will gradually come online in other states.

The company will hold introductory sessions for bookkeepers and accountants to get them acclimated to the new software.

As of September, Xero had 85,500 customers in New Zealand, 79,100 customers in Australia and 30,100 customers in the U.K. The company opened for business in the U.S. just two years ago and currently has about 100 domestic employees. About 16,600 additional customers are located mostly in the U.S.

Images: Xero


Shawn Hessinger Shawn Hessinger is the Executive Editor for Small Business Trends and a professional journalist with more than 20 years experience in traditional and digital media for trade publications and news sites. He is a member of the Society of Professional Journalists and has served as a beat reporter, columnist, editorial writer, bureau chief and managing editor for the Berks Mont Newspapers.

4 Reactions
  1. I love the automatic processing of time off. Our company does not use any type of payroll software. It turns out that it is harder to track time offs with some people cheating. It should have been better with Xero.

  2. This is good, however, I have been using the SummitTech’s payroll software after integrating it with my existing accounting software and both my software’s are working fine and efficiently offering the same solution you have mentioned in this article.