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Insight Job software and accounts 5 min read

Xero payroll: checks before and after every pay run

By Renzo Demartini, Chartered Accountant ·

Drafted with AI, reviewed and spot-checked by me.

The draft shows $6,000.00 of gross pay. Net wages are $5,000.00 after $1,000.00 PAYG. Employer super of $720.00 sits outside net wages. Wages, payslips, STP and super each need their own record. A calculated pay run is not yet a paid, reported one.
The build behind this topicA$3,900

Invoice Check

Invoices that do not reach Xero or MYOB, duplicates, and job numbers that do not match.

  • Simpro
  • ServiceM8
  • AroFlo
  • Xero
  • MYOB
See Simpro to Xero invoice checks
Fixed price · AUD · No GSTA person approves

A Xero payroll run can look finished while an important step is still open. This Australian checklist defines what counts as done: wages, payslips, Single Touch Payroll (STP) and super each need their own record.

The short answer: check the inputs, approve the amounts and verify each outcome separately. Keep a named reviewer and a piece of evidence beside every check, and stop when the evidence is missing.

  1. 01 · PrepareBookkeeper prepares

    Xero Payroll Pay run 31 Draft

    • Gross pay$6,000.00
  2. 02 · ReviewOwner reviews

    Pay run 31: approve?Hours and variance report beside it

  3. 03 · ReleaseAuthoriser releases

    Release $5,000.00 net wages?Total agrees with the approved run

  4. 04 · VerifyBookkeeper verifies
    • Bank receipt for wages
    • Payslips issued
    • STP response
    • Super outcome
  5. 05 · CloseOwner closes exceptions

    Control sheet Pay run 31 Closed

    $5,720.00

    Wages plus super funding, evidence kept.

At the end of the day Each stage has one owner and one piece of evidence behind it.

Check the settings before the totals

Rates

The approved classification and its effective date, checked before the run.

Hours

Authorised timesheets and leave, not typed again from another system.

Details

Bank and super fund changes, verified with the employee first.

Calendar

The right pay period and payday, so every date that follows is right.

Xero says you can “review and approve each pay run”.1 Its reply to a request for automatic award rates says it has no “immediate plans to build this directly into Xero Payroll”.2 Confirm classifications and rates with your payroll adviser, or with the award software you connect.

Leave needs its own check. The Fair Work Act gives 4 weeks of paid annual leave a year, or 5 for qualifying shiftworkers. It accrues by ordinary hours, and casual employees are outside it.3 Xero’s payroll guide also lists wrong tax rates and forgotten leave accruals among common mistakes.4 Check timesheets and job hours before copying figures between systems.

Work through a sample pay run

One $6,000.00 pay run creates three separate amounts to pay

A$ · orange: super, paid on top

Net wages and PAYG add up to the $6,000.00 gross. Super is extra, and PAYG is still payable separately.

Illustrative figures, not client data.

Sample data, not a client’s. PAYG is assumed, all gross pay counts as qualifying earnings and no other deductions apply. Employer super sits outside net wages. The Payday Super Act inserts section 17A into the Superannuation Guarantee (Administration) Act 1992. It sets the individual superannuation guarantee amount as the qualifying earnings multiplied by the charge percentage over 100, and says “charge percentage means 12”.6 Xero’s guide to qualifying earnings gives the same rate.5 Confirm earnings treatment with your adviser.

The sample pay run, line by line
Sample pay run 31 with gross pay, PAYG, net wages, employer super and the total of wages plus super
Item Sample amount
Gross pay and assumed qualifying earnings $6,000.00
PAYG withholding, assumed $1,000.00
Net wages $5,000.00
Employer super, 12% of qualifying earnings $720.00
Wages plus super funding $5,720.00

Keep a stop and go control sheet

Seven pay run stages, who reviews each, the evidence to keep and the stop or go rule
Stage Reviewer Evidence Stop or go
Setup Payroll adviser Approved changes Stop: unresolved treatment
Draft Owner Hours and variance report Stop: unexplained difference
Wages Authoriser Approved total and bank receipt Go: totals agree
STP Bookkeeper Deadline, submission and response Stop: late or unresolved
Payslips Bookkeeper Delivery record Go: issued
Super Authoriser Authorisation and outcome Stop: rejection unresolved
Reconciliation Owner Liability reconciliation Go: differences explained

Keep unexplained differences open. Record the resolution and restrict access to payroll evidence. This is a working checklist, not a guarantee, so test it on a completed pay cycle first.

Finish each payment and report

Wages

Sample $5,000.00 net: the bank evidence, not the calculation.

Payslips

Issued within one working day of payday, with a delivery record.

STP

The submission and its response, kept with the pay run.

Super

Sample $720.00: the authorisation and the fund’s outcome.

The Fair Work Act requires a pay slip “within one working day of paying an amount to the employee in relation to the performance of work”.3 For super, the Payday Super Act sets a usual period. It ends on the seventh business day after qualifying earnings are paid, and an “extended usual period” of 20 business days applies in some cases.6 MYOB says payments “must reach the super funds within 7 business days of payday”.7

STP is a separate outcome. Keep the submission and its response with the pay run, and confirm the applicable deadline and any concession with your adviser. This checklist covers the whole pay run, from inputs to reconciliation; the Payday Super pay-run check follows one super payment from payroll to the fund.

Keep MYOB corrections separate

Rejected or Not Sent

In MYOB’s help, the pay can be deleted when the STP status allows it.

Sent, Accepted or with errors

For Sent, Accepted or Accepted with errors, MYOB offers to reverse the pay, then report the reversal to the ATO.

In a payment or Pay Super

A pay in a processed electronic or Pay Super payment cannot be deleted or reversed.

MYOB’s help says whether you can delete or reverse a pay is “based on its status in the STP Payroll Reporting Centre”. It adds that you should only do so if the amount has not left your bank account.8 MYOB also says super payments “start processing only after authorisation”.7 For Xero corrections, follow Xero’s support pages and your adviser’s instructions.

Where a person stays in charge

Rules check

Totals, dates and the gap between payroll and bank, the same way every run.

Claude drafts

A plain note for each exception, from approved information only.

You decide

Your team confirms treatment, approves, lodges and pays.

I would build around approved exports and documented checks, with an n8n workflow comparing totals and dates. A person confirms treatment, approves, lodges and pays. This is a Custom build, from A$9,500 (AUD, no GST charged).9

Start with a free fit check by email at the foot of this page. If you are not sure which checks come first, the next step is a Workflow Audit for A$990 (AUD, no GST charged).9 It is a 60-minute call, a read-only review of your systems and a written report, with a fixed quote for each of the top 3 things worth automating. This is general information, read on 31 October 2026. Get payroll or tax advice for your circumstances, especially corrections and uncertain entitlements.

Questions

Does a calculated pay run prove everyone was paid?

No. Check the payment evidence separately from the calculation and the reporting records. The control sheet keeps those outcomes apart.

Does Xero automatically update award rates?

Xero’s reply of 24 February 2026 says it has no immediate plans to build this into Xero Payroll.2 Confirm your rates and any connected award software separately.

Can I delete an incorrect MYOB pay?

Only where MYOB’s status rules allow it, and not if the pay is in a processed electronic payment or a Pay Super payment.8 Check payment and STP status first.

Sources

Not sure which to fix first?

Get a free fit check by email and I will say whether it is worth automating. No call needed. The next step is a A$990 workflow audit: the top 3 things worth automating, with a fixed quote for each.

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Need more than one workflow? For strategy, board work and larger custom builds, I work through renzodemartini.com.

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