An error can occur with pay details being incorrect after integrating with Xero.

This is because Employment Hero will not update these details in Xero until the user updates/confirms their information. Essentially, staff have been imported via the Xero integration with the incorrect settings from Xero. When an admin user is trying to update their pay details, they may only change the settings for their normal weekly hours.

This is the error that you will see:

Above are the hours per week imported from Xero.

Above are the corrected hours in Employment Hero.

Now that this has been corrected, it is going to create an issue with the pay run for the simple reason that the way the employee pay template has been set up in Xero doesn’t match the intended setup for that employment type (being full-time/part-time).

When an employee is added to Xero Payroll, the user will add an ordinary earnings line and be presented with 3 options:

• Use Earnings Rate (Where you have entered ‌the default rate in Payroll Settings > Pay Items > Pay item being used, e.g. Ordinary Earnings)
• Enter Rate (When you manually enter in the hours and rate you wish to pay the employee)
• Annual Salary (Where you enter ‌the default hours per week and then enter the annual amount the employee will be paid).

If either of the first two options is entered and not on a weekly hour value, then the information we send to Xero will be misaligned.

1. Log in to your Xero account.
2. Go to the Employee Record for the employee whose working hours you need to resolve.
3. Go to Pay Template. 
4. Click on the Ordinary Earnings line.
   
5. Select Annual Salary.
   
6. Input the Annual Salary and the Weekly Hours.
   

Enter in the number of hours the part-timer will be working each week. If the standard is 38 hours for the week and they work 3 days a week on average, then we would put in their expected earnings total in the annual salary and 7.6 x 3 = 22.8 hrs per week.

You would still input the standard hours per week and Xero will correctly show the hours worked each month but auto-adjust the hourly rate to ensure that each pay cycle is exactly 1/12th of the annual salary.

Good question. You generally can do it either way but Xero does intend to use the annual salary option for all permanent employment types. This is why we are required by them to send over the standard hrs in a weekly format.

Xero is very versatile but even Xero allows you to set annual leave to not pay out on termination, it’s an option but obviously not intended design because annual leave accrued in Australia should be paid out regardless