As of my last knowledge update in September 2021, Xero does not have built-in time tracking features for employees. However, you can track employee time in Xero by using third-party integrations or manual methods. Here are two common approaches:
1. Manual Time Tracking:
In this method, you track employee time manually and then use Xero to process payroll based on the recorded hours. Here’s how you can do it:
- Record Hours: Employees manually record their hours worked on a timesheet or time tracking spreadsheet.
- Calculate Totals: Calculate the total hours worked for each employee during the pay period.
- Enter Data in Xero: When running payroll in Xero, enter the total hours worked for each employee in the pay run, along with their pay rates.
- Calculate Pay: Xero will calculate the employee’s gross pay based on the hours entered and their pay rates.
- Complete Payroll: Finish the payroll process, including any deductions and taxes.
- Pay Employees: Pay employees through your chosen payment method.
This method requires manual data entry and calculations, which can be time-consuming and may be prone to errors if not done carefully.
2. Time Tracking Integrations:
To simplify time tracking and integrate it with your Xero payroll processing, you can consider using third-party time tracking software that integrates with Xero. Here’s how it typically works:
- Choose a Time Tracking Tool: Select a time tracking tool or app that integrates with Xero. Examples include TSheets, Deputy, or Harvest.
- Set Up Integration: Connect the time tracking tool with your Xero account. This often involves authorizing the integration and configuring settings.
- Employees Clock In/Out: Employees use the time tracking tool to clock in and out or record their hours worked.
- Automated Data Sync: The time tracking tool syncs with Xero, sending employee time data directly to Xero’s payroll system.
- Review and Process Payroll: In Xero, review the imported time data for accuracy. Then, use this data to process payroll. The hours worked and pay rates are automatically calculated.
- Complete Payroll: Finish the payroll process in Xero, including any deductions and taxes.
- Pay Employees: Pay employees through your chosen payment method.
Using a time tracking integration can streamline the process, reduce errors, and provide more accurate time data for payroll processing.
Please note that the availability of integrations and features in Xero may have evolved since my last update in September 2021. I recommend checking Xero’s official website or contacting their support for the most up-to-date information and guidance on tracking employee time in Xero based on your specific needs and location.
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