Marshall Darr
Marshall Darr

How to set up your payroll deductions on Xero

Updated:
December 1, 2020

Good news! You’ve gotten your quote, gotten your team excited about and enrolled in Decent, and now all you have left is to onboard your new and improved health insurance plan onto your payroll platform. Odds are this article is exactly what you’re looking for.

One thing to note before we get going - odds are, we’re not much more familiar with your payroll provider than you are, if you’re working through this process and you hit a snag, please contact your payroll company’s support team for help.

Here’s a step by step guide for if you use Xero for payroll:

  1. First off you’ll have to set up the “pay item”a. Click your organisation name, then select Settings.b. Under Features, click Payroll settings.c. Select the Pay Items tab, then select Benefits.d. If prompted, confirm you've registered with HMRC for payrolling of benefits.e. Click Add, then select Private healthf. Enter a Benefit name and the Annual value of benefit.g. Click Add.
  2. Next you’ll need to assign the pay item to a “pay template”a. In the Payroll menu, select Employees.b. Click an employee’s name to open their details, then select the Pay Template tab.c. Under Benefits, click Add New Benefit, then select a benefit from the list.d. Under Annual benefit charge, adjust the amount if needed, as long as it’s not zero.e. Click Add.