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Paycycle in Xero integrates your payroll with your accounting

Rhys Roberts - Monday, May 28, 2012

If you run your payroll through Paycycle, it has now been fully integrated into Xero and you’ll no longer need to log into the Paycycle website (in fact you won’t be able to). Instead, when you log into Xero you’ll see a new tab called “Payroll”.

Aside from the fact that you now only have one site to log in to, you’ll find that payroll inside Xero looks and feels very similar to what you’re used to.


If you’re a Xero subscriber who’s not currently using Paycycle and has a small payroll to manage, this integration is a great opportunity to further streamline your accounting processes and save yourself a bucketload of time. As I wrote about in my blog a few weeks back, the speed and simplicity of processing super via Paycycle is extraordinary when compared to the manual method of uploading payments to each individual employee’s account. There are a host of other benefits too.

Xero is running a series of webinars on the integration of Paycycle, and if you haven’t attended one yet, you can register here.

Things you need to do now

Invite Paycycle Payroll Administrators into Xero: To help maintain security during the migration, Paycycle users that were Payroll Administrators have not been automatically set up in Xero, and you’ll need to invite those users in to your Xero account. To do that go to the menu option Settings \ General Settings \ Users, and invite the new user as shown below, ensuring that the “Payroll Admin” checkbox (at the bottom of this graphic) is ticked.


Grant Payroll Administrator rights to users already set up in Xero: Any users that are already set up in Xero will also need to be granted Payroll Administrator rights. As above, log into Xero and go to menu option Settings \ General Settings \ Users, then select the user you want to edit and click on the Payroll Admin checkbox.

Re-invite employees into Xero’s employee portal: If you are using the employee portal you’ll need to re-invite your employees to it. To do this log into Xero and select menu option Payroll \ Employees, then select all (or selected) employees and click on “Invite to portal”. (If you’re not currently using this feature you should consider doing so; it enables employees to check for themselves when they’ve been paid, what their annual leave entitlements are and so forth, saving you the time you would normally spend accessing this data on their behalf. Please contact us if you’d like more information on the benefits of using the employee portal or would like assistance with its implementation.

The release of this integrated payroll module has been delayed whilst the integration teams put in lots of hard work to ensure a smooth transition for users. Our testing this morning has yet to find any problems, so it looks like the extra time has been well spent.

We anticipate that most of you will find the changeover very intuitive and easy, but please get in touch with us if you have any queries or are not sure how to manage the transition. Your payroll is one of your most significant business expenses, and having an integrated system that gives you complete transparency of it within the context of the rest of your accounting will greatly improve your insights into your cashflow.

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