Whilst the overall system itself is easy to use, look at, understand, they have major failures for companies that dont work set hours. Firstly, the payslips have confused all our staff as they show Holiday pay in $$ then converts to Annual Leave in hours after 12 months, also the Alternative Leave is in hours too which means you have to mind this manually to follow the law. We have also discovered the biggest flaw being Annual Leave (for no reason at all) is not calculated using the hours entered into timesheets or payslips, instead it is calculated based off the base/minimum hours you set in their payslips, which is only changed/set when you change their pay rate. Worst off, these failures have been told to them time and time again in the Xero community and they have STILL not made any changes, instead they send help pages that tell you to calculate everything manually. We are looking to change payroll again after 2.5 yrs of overpaying AL. NOT HAPPY

The system itself is very easy to use. However, it has no flexibility for anyone who doesn't work 9-5 Monday-Friday. Majority of the clients we do payroll for do not work the usual hours, and so Xero Payroll is not appropriate for us or them. It also lacks necessary features around public holidays. We have asked for improvements in all these areas, but Xero have stated they will not be making these improvements. If you have a basic, simple payrun this may be ok for you. Anything that may be considered 'unusual' (staff that work varying hours, weekend workers, etc) this will not be the best system for you.

Way to onerous to transfer payroll over. History by employee has to be entered manually by week in order to get leave calculations correct.

Annual leave calculations are a nightmare. WE only have 2 staff... but they are a bit flexi and don't work the same hours each day. The fact that is common nowadays and Xero STILL has not enabled people to have varied working hours across different days, is absurd! Creates an admin nightmare.... not worth the hassle

Unable to have an employee on two contracts. Makes annual leave calculations incorrect. Annual leave and sick leave in hours rather than days also makes it hard as IEA's have these set as days. Our staff are on rosters and hours are variable. Would be great to enter the hours worked on each day rather than total for the week. If you are a business with staff who work set hours/days this package is fine, its when you add in other dynamics it gets tricky managing the system. An enhancement could be to add IEA contract leave conditions e.g. sick leave is 15 days, Annual Leave is 6 weeks etc. Would also be great to add in a wage table so that you can select the job and wage from the table?????

At the very least you should be able to enter your start time for the day/shift, then your end time and your unpaid lunch break, and then it should calculate your total hours for the day. But no, hours need to be manually calculated and entered by the employees, total waste of time. Xero, you need to make these tools useful, or not bother with them at all.