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You're probably here because you received an error saying, "We are unable to process the leave XXX request for X hours to Xero for employee XXXXX. This employee doesn't have XXXX enabled in Xero in their profile. Please log into Xero, assign XXXX to this employee and try again." Fortunately, the fix is relatively easy.
Xero has an in-depth article here, which you can review if the below doesn't resolve your issue.
NOTE: the following steps are all done within Xero
Assign default leave types to an employee
The first time you assign leave to an employee, you can assign Xero's default leave types. Only employees with an Employment Basis of full-time or part-time employment are eligible for leave entitlements.
- In your Xero account, click the Payroll menu and select Employees.
- Click the employee's name to open their details.
- In the Employment tab, check the employee whether a payroll calendar and earnings rate has assigned.
- In the Leave tab, click Assign Default Leave Types.
- Click on the balance shown in blue under a leave type to edit the default accrual settings.
- Select the Leave Calculation Method, then complete the remaining fields. The available fields differ based on the calculation method selected.
- Click Save.
Add additional leave types
Xero automatically creates certain leave types within Payroll settings. If a leave type you use when processing payroll isn't available, create a new leave type, then assign it to your employees.
- In Xero, click your organisation name, then select Settings.
- Under Features, click Payroll settings.
In the Pay Items tab, select Leave.
- Next, click Add, then select Paid Leave or Unpaid Leave.
- Enter a name for the leave type. Then, if you choose to show the balance, this name will show in the employee's Leave tab and on their payslip.
- Enter the remaining pay item details, then click Add.
Assign a new leave type to your employee
Once you've created the leave type in Payroll settings, assign it to your employee so they can request leave going forward for this leave type.
- In Xero, click the Payroll menu, and select Employees.
- Click the name of the employee to open their details.
- In the Leave tab, click Assign Leave Type.
- From the Leave field, select the leave type you want to assign.
- Select a Leave Calculation Method, then enter the remaining details.
- Choose either Not Paid Out or Paid Out to set the treatment of any outstanding leave balances when terminating an employee.
- Click Save.