How to Add Annual Leave in Xero

Introduction

If you are a business owner or a manager using Xero for managing your employee payroll, it is important to understand how to add annual leave in Xero. Tracking and managing annual leave is vital for the smooth operation of your business and ensuring your employees are fairly compensated for their time off.

Step 1: Log in to your Xero Account

First, you’ll need to log in to your Xero account using your username and password. Once logged in, navigate to the Payroll menu.

Step 2: Access the Employee Leave Settings

In the Payroll menu, find and click on the “Employees” tab. From the list of employees, select the employee for whom you want to add annual leave.

Step 3: Set up the Employee’s Leave Entitlement

Within the employee profile, you will find a “Leave” tab. Click on it to access the leave settings for that particular employee. Here, you will see an option to add or edit leave entitlements.

Step 4: Add Annual Leave Entitlement

Click on the “Add leave entitlement” button to specify the annual leave details. You will need to enter the entitlement type, entitlement hours/days, and the period of entitlement. Make sure to select “Annual Leave” from the entitlement type dropdown menu and input the appropriate values.

Step 5: Save the Changes

Once you have entered the necessary details, click on the “Save” button. Xero will update the employee’s leave settings, and the annual leave entitlement will be added to their profile.

Step 6: Adjusting Leave Accrual and Balances

If an employee’s annual leave balance needs to be adjusted, you can do so by going back to the “Leave” tab within the employee profile. Click on the “Adjustments” button and select the appropriate option, such as “Add” or “Deduct.” Enter the adjustment hours/days and save the changes.

Step 7: Monitoring and Approving Leave Requests

Employees can request leave through Xero, and as a manager, you will receive notifications of these requests. To manage and approve leave requests, go to the “Leave” tab within the employee profile, and click on the “Requests” tab. Here, you can view pending leave requests and take appropriate action.

Step 8: Running Leave Reports

If you need to keep track of your employees’ annual leave usage or generate reports, Xero provides a range of reporting options. From the “Payroll” menu, select the “Reports” tab, and then choose the type of leave report you want to generate. Xero offers various pre-built reports, or you can customize one according to your specific requirements.

Conclusion

Effectively managing annual leave in Xero is crucial for maintaining a fair and efficient leave tracking system within your organization. By following these simple steps, you can add annual leave entitlements, make adjustments, and monitor leave requests with ease. Xero’s user-friendly interface and comprehensive reporting options provide a seamless experience for both employers and employees when it comes to managing and tracking annual leave.