The best payroll integration for Xero | OnPay - YouTube

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Xero offers a cloud-based accounting solution built for small businesses.

OnPay connects to your Xero account to make balancing your books quick and easy.

In this video, we're going to show how to set up the integration and map your

chart of accounts.

To begin, click the Settings menu on the left-hand side of the screen,

then select Payroll Integrations. Choose Accounting.

Scroll down and click the blue Connect to Xero button.

A popup window will appear and you'll be asked to log in to Xero and select which

account you'd like to connect to OnPay.

Once you receive a Success message, the connection has been authenticated.

Click the Close This Window button.

Choose whether you would like payroll data to sync automatically

after each payroll completes.

Then, select if the data should come over in a Detail or Summary form.

If the information is selected to come over in detail, you will see a separate

transaction for each employee in Xero.

OnPay sends the payroll data as bills to Xero.

Select if you prefer the bills to come into Xero with the status of Draft,

Awaiting Payment, or Approved and Paid.

We suggest to initially select Draft Bills in the dropdown so you can ensure that

transactions look the way you expect in Xero.

Transactions can be easily deleted from the Draft Bills section.

This setting can be updated to Awaiting Payment or Approved and Paid at any time.

Let's start mapping your Chart of Accounts items.

Mapping is simply connecting your Chart of Accounts to the different transactions

that occur in payroll.

The more accounts you choose, the more detailed information you'll

see in Xero.

You can have an account for each payroll item or assign multiple items

to one account.

First, click the dropdown next to Checking Account.

This will show your available asset or bank accounts from which to choose.

Second, click the dropdown next to Direct Deposit Clearing Account to select

a liability account.

If you do not have a payroll clearing or net pay account already created,

you can create the account in Xero and simply click Refresh Accounts to have the

new account appear in OnPay.

If your company does not have controlled or credit card tips paid through payroll,

please leave the Controlled Tips Clearing Account blank.

If your company does use controlled tips, you can assign a liability item.

For more information on accounting for controlled tips, please visit

our Knowledge Center.

All of the payroll items must be mapped to the appropriate type on each of the

tabs appearing below.

Even if your business does not use a particular item, you must map it

to an account in order for the integration to process successfully.

Tax expenses are the employer portion of taxes such as social security,

Medicare, and unemployment.

Tax liabilities are the employee and employer taxes payable to the different

state and federal agencies.

Deductions cover employee withholdings such as health benefits, 401(k)s,

and any other post or pre-tax deductions.

This tab also includes employer contributions for some

of these same items.

The amount deducted from the employee is a liability item.

The employer matches to these deductions would be an expense to your business.

In the Departments tab, you can map your salaries and wages to any

departments you may have set up in OnPay.

For other miscellaneous expenses like Loans, Reimbursements, or Owners Draws,

you'll be able to associate these with an account here.

Prefer to map by pay type?

Change the setting by selecting Click Here in the Help area that appears

to the right.

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The only tab that is optional and does not require you to enter all fields

is Tracking Categories.

Tracking Categories allow you to filter your Xero reports for a more detailed look

at your business.

Now we've set up the integration and you're ready to send your data to Xero.

Thanks for watching.

If you have any questions about this video, give our client experience team

a call, chat, or email. Have a great day.