Resource 1

Paying staff via BACS


If you've set up your organisation to process payments by BACS, this can save you a lot of time. You must have a BACS arrangement with your business bank in the first place.

For each employee in your payroll system to be paid by BACS, their bank account information must be saved down in the employee payroll profile...

Once you have submitted by payroll, simply download the BACS file and import it with online banking (your bank portal) to pay your employees

This is how to do it in Xero:

  1. In the Payroll menu, select Pay Runs
  2. Click the posted pay run period to download the payment file
  3. Click Options and select Download BACS File
  4. Save the file and import it to your online banking account

After your bank makes the payments, you'll need to code the transaction to the wages payable account you selected during set-up.

If you're not paying your employees by bank transfer, you’ll need to pay them another way e.g. manual payments.