Setup Pay Items and Employee Templates in Xero

Overview

Before timesheets can be successfully sent from Astalty to Xero, you need to ensure that the correct Pay Items and Employee Pay Templates are configured in Xero.

Pay Items define the different types of earnings that employees can receive, such as ordinary hours, overtime, or allowances. When timesheets are exported from Astalty, the hours worked are mapped to these Pay Items so they can be processed correctly in Xero payroll.

Because Astalty sends the hours worked to Xero and the Pay Items are configured using Rate Per Unit, you should not enter any default hours or figures in the Ordinary Hours field in the employee’s Pay Template. The hours will be populated automatically when timesheet data is imported from Astalty.

Completing this setup ensures that when timesheet data is exported from Astalty, the hours will map correctly to the appropriate earnings categories in Xero.

Configure Pay Items in Xero

Pay Items define the different types of pay employees receive (such as Ordinary Hours, Overtime, Weekend Rates, Public Holiday Rates, and Allowances). These must be set up in Xero so Astalty can correctly map scheduled hours to the appropriate payroll categories.

To configure Pay Items in Xero:

To assist with this setup, we’ve created a SCHADS Checklist with example figures for Pay Classification Level 2, Pay Point 1 which you can find here. We recommend reviewing these against the official Pay Guide to ensure accuracy when creating your Pay Items.

You will need to create Pay Items for each Pay Point, however Allowances remain consistent across Pay Points, so they only need to be set up once.

Ensure that all pay rates used within Astalty Scheduling have a corresponding Pay Item in Xero.

1. Log in to Xero.

2. Navigate to Payroll and select Payroll Settings.

3. Open the Pay Items tab.

4. Click Add or edit Pay Items as required.

Setup Employee Pay Templates

Once your Pay Items are configured, you will need to review each employee’s Pay Template in Xero.

The Pay Template defines the default payroll settings for an employee, including their ordinary hours, deductions, superannuation, and reimbursements. When timesheets are exported from Astalty, the hours worked are sent to Xero and matched to the appropriate Pay Items, which apply the correct pay rates for each shift type.

Because these Pay Items determine the correct rates, the Ordinary Hours rate in the employee’s Pay Template should be left blank. This ensures that the rates applied to shifts are determined by the Pay Items rather than a fixed rate in the Pay Template.

Any Deductions, Superannuation, or Reimbursement lines should be configured according to the employee’s employment contract.

To review an Employee Pay Template:

1. In Xero, navigate to Payroll → Employees.

2. Select an employee and open the Pay Template tab.

3. Confirm that the Ordinary Hours rate is blank.

4. Review any Deductions, Superannuation, or Reimbursement lines to ensure they reflect the employee’s contract.

5. Click Save if any updates are made.

Repeat this process for all employees who will have timesheets exported from Astalty.

Setting up Pay Items Video Walk-Through

In this video, we demonstrate how to create Pay Items in Xero so they can be mapped to Astalty as part of the Payroll Integration setup.

Setting up Employee Pay Templates Video Walk-Through

In this video, we walk through how to review and configure Employee Pay Templates in Xero to ensure they are set up correctly for the Astalty Xero Payroll Integration.

Next Steps

You’re now ready to map your Pay Groups and Employees in Astalty. Click here for the guide.