Understanding and Adjusting Payroll Bills in Xero

This guide explains how HReasily maps payroll amounts to your Xero Bill, what appears in the Bill, and how to make adjustments when necessary.

Step 1: Understand the account mapping

• Employer expenses → recorded as expenses. Anything the company pays as part of employment costs (like employer EPF contributions) goes into expenses.

• Employee deductions → recorded in statutory payable liability account. Anything the company pays on behalf of employees (like employee EPF deductions from their salary) goes into a statutory payable liability account — not as an expense.

Step 2: Review what’s in the Bill

• After payroll mapping, your Bill shows net salary + employer statutory obligations.

• Employee obligations are already in the statutory payable account.

Step 3: Choose your approach

At times, additional lines may be added to the Bill to transfer the employer portion to the statutory payable account.

• When adjustments are needed → Add negative lines for the employer portion to move it into the statutory payable account. This way, the Bill ends up showing only net salary, while the statutory payable account shows the full statutory liability for the month.
  
• No adjustments → Tag salary payments to the Bill; employer portion remains until statutory payments are made.

Step 4: Check your accounts

• Bill shows only net salary (after adjustments).

• Statutory payable account shows total statutory liability for the month.

For additional details, refer to this guide: Payroll and CPF payments not matching Bill in Xero