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How to Optimise Your Pay Items in Xero
How to Optimise Your Pay Items in Xero

This is the ideal way to setup your pay items within Xero for Australia

Martin Callan avatar
Written by Martin Callan
Updated over a year ago

CASUAL EXAMPLE

Base Hourly - Award Full-Time Day Rate

Casual Day Rate

  • Casual Employees are entitled to a loading of 25%

  • Pay Item Multiplier 1.25 x The Ordinary Time Earnings rate

Casual Early Morning, Afternoon & Non-Permanent Night Rate

  • Casual Workers that finish work after 6pm at night or start before 6am in the morning are entitled to a further 15% loading

  • Pay Item Multiplier (0.25 + 0.15) = 1.4 x The Ordinary Time Earnings rate

Casual Saturday Rate

  • Casual Workers that work on Saturdays are entitled to further loading of 50%

  • Pay Item Multiplier (0.25 + 0.5) = 1.75 x The Ordinary Time Earnings rate

Casual Sunday Rate

  • Casual Workers that work Sundays are entitled to further loading of 100%

  • Pay Item Multiplier (0.25 + 1.0) = 2.25 x The Ordinary Time Earnings rate

Casual Public Holidays Rate

  • Casual Workers that work Public Holidays are entitled to further loading of 250%

  • Pay Item Multiplier (0.25 + 2.5) = 2.75 x The Ordinary Time Earnings rate

Part-Time Example

Part-Time Day Rate

  • Part-Time Employees are entitled to a loading of 15%

  • Pay Item Multiplier 1.15 x The Ordinary Time Earnings rate

The same multipliers also apply to Part-Time and Full-Time Staff when they then work Early Morning, Afternoon and Non-Permanent Night Shifts, Saturdays, Sundays and Public Holidays.

If you do decide to set up your pay times as described, keep in mind the following areas will need to be updated.

  • Ordinary Earnings Rate for the Employees

  • The Pay Templates will need to be updated with the New Pay Items and the New Ordinary Earnings Rate

  • You'll use separate Ordinary Earnings Rate Pay Items for Level 1, 2 & 3 Cleaners

Disclaimer: The information provided herein is of a general nature and not intended to address the specific circumstances of any particular individual or entity. This content does not constitute professional accounting, bookkeeping, or legal advice. It is recommended that you obtain advice directly from a qualified professional such as an Accountant, Bookkeeper, or the Fair Work Ombudsman for advice tailored to your individual circumstances and needs. While attempts have been made to ensure the information contained in this text is accurate, we cannot guarantee its accuracy and, to the fullest extent permitted by law, disclaim any liability for any loss or damage arising from reliance on this information. Always consult with a professional to ensure compliance with all relevant laws and regulations.

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