Comprehensive Xero payroll setup guide

By Sean Wyse Updated 12 January 2026 3 min read

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This guide explains how to set up payroll in Xero for integration with RosterElf. By following these steps, you’ll be able to configure payroll calendars, assign pay items, and set up pay templates. This setup ensures accurate payroll calculations aligned with your award rates, simplifying payroll processing and keeping everything up-to-date when changes are made. class="mb-6 text-gray-700" > In this section, you’ll create a new payroll calendar in Xero (New Zealand Xero users only) specifically for RosterElf. This calendar will serve as the basis for all employee scheduling and payroll alignment, ensuring that employee hours match the Xero payroll cycle.

Frequently asked questions

1. Do I need to create a new pay calendar in Xero for Rosterelf?

Only if your business is in New Zealand. Australian businesses can use their existing calendar.

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Previous Common Xero errors on RosterElf and how to solve them

Next Creating a pay template for Xero

1.1 Set up the RosterElf payroll calendar in Xero

1.1.1 Go to Payroll - Payroll Settings - Pay Frequencies - New Calendar.

1.1.2 Name the new calendar "rosterelf" to identify it in your settings quickly.

1.1.3 Save the new calendar.

Create Payroll Calendar in Xero class="mb-6 text-gray-700" > After creating the RosterElf calendar, you’ll need to assign it to each employee. This ensures that payroll calculations follow the new calendar’s schedule.

2.1 Assign RosterElf calendar to employees

2.1.1 Go to Payroll settings - Employees - Employment.

Xero Employees tab under Payroll Settings

View of an Employee's Employment details in Xero

2.1.2 Under each employee\'s profile, navigate to Payroll Calendar and select "rosterelf" from the options.

Screenshot of the Payroll Calendar dropdown in an Employee's profile Now, create pay items in Xero based on your award requirements. Xero offers two options: fixed-rate items or multipliers. Multipliers are recommended, as they automatically adjust based on employee base rates.

3.1 Create pay items based on award rates

3.1.1 Go to Payroll - Payroll Settings - Pay Items.

3.1.2 Click Add Item to create a new pay item.

Screenshot showing how to add a new pay item in Xero

3.2 Choose pay item format

3.2.1 Fixed rate per unit: Create specific items for each classification. For example: Early morning rate 16 years or Early morning rate 17 years. Note: when typing "Hours", avoid spaces after the "s" to avoid data errors.

Screenshot displaying a fixed-rate pay item setup in Xero

3.2.2 Multiplier: Set up a multiplier item to adjust according to employee base hours, requiring less manual updating.

Screenshot showing a multiplier-based pay item setup in Xero In this step, you’ll connect RosterElf to Xero through the API. This integration enables the direct flow of roster data into Xero’s payroll system.

4.1 Link RosterElf with Xero

4.1.1 Log in to RosterElf and go to Settings - Payroll.

Screenshot of RosterElf Settings - Payroll section

4.1.2 Select Reconnect to Xero.

Screenshot showing the Reconnect to Xero button in RosterElf

4.1.3 You’ll be redirected to Xero—sign in and select the organisation to connect.

Xero login screen after redirect from RosterElf Once connected, align your RosterElf payroll calendar with Xero’s to ensure accurate payroll processing.

5.1 Match payroll calendars

5.1.1 Go to Payroll in RosterElf.

Screenshot showing RosterElf's Payroll tab

5.1.2 Click on the settings gear on the top right of the screen to access Payroll Settings.

Screenshot highlighting the Settings gear in RosterElf's Payroll section

5.1.3 Ensure the RosterElf pay calendar matches the one you created in Xero.

Screenshot displaying the Pay Calendar dropdown in RosterElf

5.1.4 If they don't match, amend as required and click Save.

Screenshot of the Save button in RosterElf's Payroll Settings Lastly, set up pay templates in Xero to simplify payroll processing. Pay templates save time and help standardise pay across employees.

6.1 Set up pay templates

6.1.1 Go to Settings - Payroll.

Screenshot highlighting Settings - Payroll in Xero

6.1.2 In the Pay Template area, click the green plus symbol to add a new template, which can be customised as needed.

Screenshot showing the green plus symbol for adding a new pay template

6.1.2 Pay template explained:

Screenshot with details on how to create and configure a pay template

1. Pay Template Rule Name: Assign a name for internal reference in RosterElf.

2. Xero Pay Item: Choose a pay item from the dropdown list, which includes all active items from Xero. (If items aren’t visible, log out and back in.)

3. Budgeting Rate: Set a budgeting rate for internal budgeting. This does not impact Xero but should align with your budgeting setup if desired.

4. Active on Days: Select the days when each rule applies. Mon-Sun are self-explanatory, and Hol applies to public holidays.

5. Relevant Hours: Define the time range for each rule using the slider or by entering specific start and end times.

1. How do I create a new payroll calendar for RosterElf in Xero?
To create a new payroll calendar for RosterElf, go to Payroll Payroll settings Frequencies New Calendar in Xero, name the calendar RosterElf, and save it. This calendar will align employee scheduling and payroll processing in Xero with RosterElf.

2. How can I assign the RosterElf payroll calendar to employees in Xero?
Assign the RosterElf payroll calendar by going to Payroll settings Employees Employment. Under each employee’s profile, select RosterElf from the Payroll Calendar options. This ensures payroll calculations align with the new calendar’s schedule.

3. What if I can’t find my award?
If you're unable to locate your award, refer to the Fair Work website for assistance.

4. How do I connect RosterElf to Xero for payroll integration?
To connect RosterElf to Xero, log in to RosterElf, go to Settings Payroll, and select API Connection to Xero. After being redirected to Xero, sign in and select the organisation you wish to connect.

5. Why should I create pay templates in Xero for RosterElf payroll?
Creating pay templates in Xero simplifies payroll processing and ensures consistent pay across employees. Go to Settings Payroll Pay Templates in Xero and add a new template to standardise your payroll setup.

6. Do I need to create a new pay calendar in Xero for Rosterelf?
Only if your business is in New Zealand. Australian businesses can use their existing calendar.

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