Payroll - What Converts

1. Employees who are active as at the start of the payroll year OR 
   
2. Employees who are inactive but meet the following:
   
1. There is a payroll calendar set up for the employee
   
2. There is an amount in the PAYG for the employee
   
3. All employees set-up but never paid
   

NOTE - if you have terminated an employee in the current payroll year they will still come across as active, you will need to make them inactive. If you select a transactional history conversion service you will receive “paid off” bills or "Manual Journals" which represent the actual payments and transactions processed in your file. This ensures that your general ledger and bank account will match the source file.

Whilst converting terminated employees to Xero there must be a termination date, if there is no termination date we will allocate a date. The Action Checklist will highlight the employees that need to have the correct termination date added.

In Xero the first step is to reinstate the employee

1. In the payroll menu, select Employees

2. Select past tab.3. Click the employee's name.

4. Select the employment tab.

5. At the bottom of the screen, click reinstate employee.

Once the employee has been reinstated they can then be terminated as per the steps below:

1. In the payroll menu, select the employee.

2. Click the employee's name to obtain their details.

3. Select the Employment tab.

4. At the bottom of the screen, click End Employment.

5. Under the Termination Date, select the employee's last day of employment. This can't be before the employee's start date, or more than 10 years from the current date.

6. Under the Reason for termination, select the relevant option to include in your STP report.

7. Click End employment to confirm.

Employee data that will come across:

1. Contact details
   
2. Employment details
   
3. Tax declaration
   
4. Leave
   
5. Bank account details and
   
6. Pay template.
   

Pay Setup:

Payroll is prepared with:

1. Pay items - used in the transactional period converted. Any Pay items not used during this period of time will remain unconverted to Xero and can be added post conversion.
   
2. Deductions and Reimbursements (will convert if not linked to a bank account)
   
3. Superannuation deductions (convert as part of pay template)
4. Employee details
   
5. Pay templates
   
6. Pay cycles
   
7. Opening balances ( this displays the year to date of what each employee has been paid )
   

Using this information you will be able to create your payment summaries in Xero for the current financial year.

Any items that contain the word 'allowance' will be set up in Xero as an allowance.

EG. Laundry Allowance = Will convert as an Allowance      Laundry per week = Will convert as Ordinary Time Earnings

Where the ATO classification is unclear we will selected Allowances - Other. In Xero please review and adjust prior to the first pay run if required.

We recommend that payroll settings and employee information be reviewed following a conversion including entitlement.

If you operate on a non-standard financial year please note that reporting data for payroll will only be provided on a standard financial year July - June.

MYOB Online Australia Specific Payroll notes:

There are some data accessibility restrictions in MYOB Online files where the following data is not accessible:

1. Tax File Numbers
   
2. USI / Spin Numbers - Unless we can name match off Xero
   
3. Tax Free Threshold is either Yes or No - all other options are not accessible to our extraction

If you are using MYOB AccountRight Live you have the ability to provide a desktop file instead where we are able to extract these details for the conversion.

Quickbooks Online Australia Specific Payroll notes:

There are some variances between Quickbooks these are outlined below

1. Pay categories require payment classification.
2. All used pay rates you wish to convert need to have a unit present in the source file. ( refer to the employee pay rates before converting )
   
3. Only 1 pay rate template can be used for each employee. ( refer payroll setting > pay conditions > pay rate template )
   
4. Only paid Domestic Violence leave entitlement will convert , unpaid Domestic Violence leave will need to be created post conversion.

Reckon Australia Specific Payroll notes:

Reckon Payroll module is an accounting solution for Single Touch Payroll as such we do convert as this is an add-on.       

If the payroll data is contained in your Reckon backup data this will be converted to Xero.

Superannuation

Where possible we bring across superannuation funds for employees.  If a super fund is missing it will be for one of the following reasons:

1. Because we didn't have enough details or there was more than one SPIN/USI number in the source file. An example is the super fund AMP, which can be one of nine different super funds depending on the spin number. 
2. Self-Managed Super Funds will not come across as there is no equivalent fund in Xero.
3. Superannuation details and funds will not come across if the file is MYOB Essentials, MYOB Live, MYE or MYO.

If you are missing a superannuation fund, simply add it in the payroll settings area before you attach it to the employee card. Click this link for the instructions on how to  Add Superfund in Xero.

Unfortunately, as we cannot convert Payruns the Super accrual does not flow into Xero for you to be able to make Auto Super payments. These payments should be made from the source file prior to cancelling the subscription, or through your clearinghouse.

Paying Superannuation in Xero

We suggest paying all superannuation payments up until the date of conversion using your prior system to avoid error and additional work. Depending on your software package in Xero you may have the ability to make use of Xero's Auto Superannuation Payment Process. Either way please find the guide below on how to pay superannuation using Xero.

Processing Superannuation using Auto Super

1. Paying Superannuation Auto super
   
2. Payroll Process Super
   

Processing Superannuation without Auto Super

1. Paying Superannuation manually 
   

Please see the step by step guide here for calculating payroll figures post-conversion.

What We Don't Convert and Other Considerations: 

1. We do not bring across any employer expenses.
   
2. Superannuation details and funds will not come across if the file is MYOB Essentials, MYOB Live, MYE or MYO.
   
3. Xero's limitation is set to 200 paid employees over the previous month. The conversion brings over, all employees. Unfortunately, if you have more than 200 employees we will be unable to convert the file.
   
4. Future dated leave does not convert you will need to replicate post-conversion.
   
5. Timesheets do not convert and will need to be set up in Xero post conversion.
   
6. Xero pay items can only be associated with one expense account. If you have used various expense accounts in your source file then you will need to review/add post conversions.
   
7. If you have Casual Employees with leave entitlements these balances will not be included as part of the conversion. Please see here for more information. 
8. Xero subscription pricing is based on the number of employees paid, not on the total number of employees (active and inactive). If you have business with 100 plus casual employees, but only paid 20 last month, the subscription would be based on the 20, not the 100. You will need to contact your Xero account manager for the correct billing and pricing for greater than 100 employees as per the Xero pricing page.
   

IMPORTANT NOTE FOR RECKON & QB FILES:  Any jobs associated with payroll entries will not come across from the Reckon source file to Xero during conversion.

Post Conversion Payroll Recommendations

1. Xero pricing plan
   

1. Find out who the Xero subscriber is
   

1. Xero Partners upgrading their client's subscription
   
2. Business owners upgrading their own subscription