Fixing issues with Xero pay item setup

This guide explains how to resolve issues with Earnings Rate ID does not exist error. By following these steps, you’ll ensure your pay templates and staff details are correctly aligned with Xero. This reduces errors and ensures smooth payroll processing.

1. Check pay templates in settings

Pay templates must have the correct Xero pay items assigned. This section explains how to check and fix the pay template setup.

1.1 Verify the Xero pay Item within the pay template

1.1.1 Click on Settings.

1.1.2 Click on Payroll.

1.1.3 Select your Pay templates.

1.1.4 Check that a Xero pay item is assigned to each section of the pay template.

2. Check pay items for fixed salary staff

Fixed salary staff must have their Xero pay items assigned. This section outlines how to verify and update these details.

2.1 Assign Xero pay items to fixed salary staff

2.1.1 Go to Staff and select a fixed salary staff member.

2.1.2 Under their Payroll tab ensure their Xero pay item is assigned.

2.1.3 Update the staff profile if no pay item is assigned.

3. Unlink non-entity staff in Xero

Staff who are no longer part of the entity should be unlinked in Xero. This section explains how to manage these cases.

3.1 Unlink staff from Xero

3.1.1 Go to Settings.

3.1.2 Select Xero Employees.

3.1.2 Select the Linked tab.

3.1.3 Identify staff who aren’t part of the entity and press Unlink.

Common questions about Xero pay item setup

1. What are Xero pay items, and why are they important?
Xero pay items are payroll categories used to allocate earnings, deductions, and other payment components. They ensure accurate payroll processing and reporting.

2. How can I check if Xero pay items are correctly assigned to pay templates?
Go to Settings > Payroll > Pay templates. Verify that each section of the pay template has an assigned Xero pay item. Update any sections missing an allocation.

3. What should I do if a fixed salary staff member doesn't have a Xero pay item?
Go to Staff, select the relevant staff member, and check their profile. Assign the correct Xero pay item and save the changes to ensure proper payroll processing.

4. Why do I need to unlink staff who are no longer part of the entity in Xero?
Unlinking non-entity staff prevents payroll errors and ensures the current staff list in Xero reflects accurate data for reporting and processing.

5. How can I unlink non-entity staff in Xero?
Navigate to Settings > Xero Employees. Identify staff who no longer belong to the entity and select the option to unlink them from Xero.