My husband and I have owned Lennox Head Pizza and Pasta for the past 8 years. It is the nature of hospitality to have a high turnover rate of staff, so I understand how it can become a very time consuming task going through the administrative nightmare of setting up new employees in your business on a regular basis.
I was forever having to chase the staff for their bank details or Super details, just so I could pay them. I was constantly having employees ask me for copies of their payslips which was a touch irksome as I would diligently print them out and distribute them weekly just to see them in the bin after the employee had glanced at them. It is a requirement for staff to keep their payslips, however in my experience this did not happen
And then there is Super… don’t even get me started on Super. Hounding the staff for their employee and fund numbers, figuring out the different methods each fund had in place for lodging and paying the liabilities. I don’t even want to know how much time I wasted on this in the past.
I had to find a way to streamline this process.
With the help of a few Xero features and some organization on my part, I was off and running.
I’m excited to pass these hacks on to you:
1. The first step in my process was to create an employee information sheet with all the relevant details I needed to set each employee up in Xero. When a new employee starts, I give them this form and a Tax declaration. I explain to them that I cannot process their pay until every part is filled out. What other motivation do they need. Bam! No more chasing for details. You would think this an obvious step however it took me ages to work it out. I’m not the only one either. Alot of other clients I have worked with struggle with this. I will be providing this template free in my next monthly newsletter. Sign up here to so it arrives in your inbox.
2. You can now lodge the employee Tax Declarations through Xero. It the past you were required by the ATO to fill out your employer details and snail mail them off. Yuk! Now it is as easy as a few clicks and the lodgement is complete. That right there would save me multiple trips to the post office.
3. The Almighty Employee Portal. Once you have set up your employees in Xero you can invite them to use the portal. Here they can apply for leave, log their hours and……. wait for it….. access all their payslips. So you don’t have to be their port of call every time they need some information.
4. Auto Super is another amazing feature Xero has rolled out recently. Once your employee’s super details are set up correctly in Xero you can choose to set up Auto Super. This enables Xero to relay all your employees Super liabilities to their chosen funds so you don’t need to lodge with each fun. The funds are then directly debited from your chosen bank account. I have started to pay the staff Super weekly, which has been great for the cash-flow of the business. Check out this video explaining Auto Super in Xero.
I hope these Xero payroll hacks will help save you time. They sure have for me.
Do you have any other great tips or tricks? Leave a comment below I would love to hear all about it.