How to Do an Unscheduled Pay Run in Xero - Step-by-Step Guide

An unscheduled pay run in Xero is a way to process payroll outside of your regular pay schedule. This can be useful when you need to pay your employees for additional hours worked, bonuses, or any other unforeseen circumstances that require immediate payment. In this step-by-step guide, we will walk you through the process of conducting an unscheduled pay run in Xero, ensuring accurate and timely payment to your employees.

Preparing for an Unscheduled Pay Run

Assessing the Need for an Unscheduled Pay Run

Before proceeding with an unscheduled pay run, it's essential to determine if it is necessary. Consider reasons such as employees working overtime, special bonuses, or any other one-time payments that need to be made outside of your regular pay schedule. If you have any doubts or need further clarification, consult with your payroll department or HR team.

Gathering Employee Information

Before conducting an unscheduled pay run, gather the required employee information. Make sure you have the following details for each employee:

• Full name
• Employee ID
• Pay rate
• Hours worked
• Any additional allowances or deductions

Reviewing Time Entries and Pay Rates

Ensure that all time entries and pay rates for the unscheduled pay run are accurate. Double-check that any overtime hours have been properly recorded and that the pay rates reflect the correct amount for each employee.

Verifying Deductions and Allowances

Take the time to carefully review any deductions or allowances that need to be accounted for in the unscheduled pay run. This could include items such as taxes, insurance premiums, or any employee benefits. Verify that these deductions and allowances are accurately reflected in the payroll records.

Conducting an Unscheduled Pay Run

Accessing the Pay Run Page in Xero

1. Log in to your Xero account.
2. From the main dashboard, navigate to the Payroll tab.
3. Click on Pay Runs.
4. Select the option to create a new pay run.

Selecting Employees for the Pay Run

• Select the employees who will be included in the unscheduled pay run.
• Ensure that all relevant employees are checked or selected. If any employees should not be included in this specific pay run, uncheck their names.

Entering Hourly Rates, Overtime, and Other Pay Details

1. For each employee, enter the relevant pay details, such as hourly rates and any overtime hours worked.
2. Review the information for accuracy.
3. Make any necessary adjustments if required.

Adding Deductions and Allowances

1. If there are any deductions or allowances specific to the unscheduled pay run, add them for each employee.
2. Ensure that the amounts are correct and reflect the appropriate deductions or allowances for each employee.

Reviewing and Adjusting Pay Details

1. Review all the pay details for each employee, including pay rates, hours worked, and any deductions or allowances.
2. Make any necessary adjustments to ensure accuracy.

Finalizing and Processing the Unscheduled Pay Run

1. Once you have reviewed and confirmed the pay details, proceed to finalize the unscheduled pay run.
2. Double-check that all the information is correct to avoid any errors.
3. Click on the button to process the pay run.

Verifying the Unscheduled Pay Run

Checking Employee Pay Slips

After the unscheduled pay run has been processed, review the pay slips of the employees included. Make sure that the payment amounts and any deductions or allowances are accurately reflected on the pay slips.

Reviewing Payroll Reports

Generate and review the payroll reports in Xero. These reports provide an overview of the unscheduled pay run, including the total amount paid and any relevant deductions or allowances. Verify that the report matches your expectations and the payments made.

Addressing Discrepancies or Errors

If you find any discrepancies or errors in the unscheduled pay run, it is important to address and correct them promptly. Consult with your payroll department or HR team to rectify any issues and ensure accurate and timely payments to your employees.