Set up payroll deductions for health insurance premiums in Xero

Leslie Harding
Medical Plans

The following is a summary of setting up payroll deductions for pre-tax health insurance premiums. For complete instructions, check out this article.

  1. To add a benefit, select your organisation name, then select Settings
  2. Under Features, click Payroll Settings
  3. Select the Pay Items tab, then select Benefits
  4. If prompted, confirm you've registered with HMRC for payrolling of benefits
  5. Click Add, then select Private Health
  6. Enter a benefit name and the annual value of the benefit
  7. Click Add
  8. Next, assign the new benefit (called a “pay item”) to a pay template
  9. From the Payroll menu, select Employees
  10. Click an employee’s name to open their details, then select the Pay Template tab
  11. Under Benefits, click Add New Benefit, then select a benefit from the list
  12. Under Annual Benefit Charge, adjust the amount if needed, as long as it’s not zero
  13. Click Add

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