The guide is written for system administrators integrating Deputy with Xero UK and covers:
Before You Start
Before you start exporting to Xero UK, please ensure you have:
an active Xero Payroll subscription for the company,
you have both the Payroll Administrator AND Advisor permissions attached to your account.
You may check your Xero permissions by going to Settings in the top left corner, then clicking General Settings, then Users. If you do not have the relevant permissions, you will not be able to see the options to adjust pay. The administrator of the Xero account may add this for you.
1. Setting up your Employees in Xero
You will need to have your employees set up in Xero to start, meaning you will need to finalise their set-up under the Payroll> Employees section. This involves completing the Details, Employment, and Taxes sections.
If you have created your employees in Deputy already you will be able to merge them with Xero later, however, you will need to go back into Xero and add any missing details.
Before you can export timesheets employees will also need to be assigned Wages/Salaries items and a Payroll calendar to each employee in XERO. These are not essential right now and we will cover these later in the process.
2. Setting up and Assigning Pay Items in Xero
After setting up your employees, you'll need to create some pay items. Pay Items are just rules or rates on how an employee should be paid. Once you've created some Pay Items you can assign them under Salary and Wages section on an employee's Pay Template.
An employee can have multiple Pay Items assigned to them, which allows them to be paid different rates according to different work conditions e.g. working different areas or hours.
To create a Pay Item in Xero, first click "Settings" at the top of the screen, then select "Payroll Settings". After doing so, please select the "Pay Items" tab.
Once you're on the Pay Items page, you can create a new pay item by clicking "Add" on the right. Select the Earning Category* from the list that comes up.
*Note: If you are exporting to Deputy you can only set the Earnings Category to Regular Earnings, Overtime Earnings, or an Allowance.
You will then see a popup for the selected Earning Category that lets you assign the rate:
an Earnings name (how Xero will recognise the rate)
a Display name (how it will appear to the employee on the payslip)
the Expense Account.
Xero will assign rates based on their name. In its more basic form, this refers to Weekday, Saturday, Sunday, and Public Holiday rates. If you name a rate "Weekday Hours" for example, the system will apply it to that employee's hours worked from Monday to Friday. Saturday can be Sat or Saturday. Sunday may be Sun or Sunday. Public Holiday should be PH. If this naming scheme is not used, the system will apply the employee's Wages & Salary item as the default.
When you create a Pay Item, please note that although you may assign it a value per hour on the creation page, you may also apply it manually to an employee. This means that you may use one Pay Item for multiple employees, even if those employees are paid differently to the rate specified at creation.
If you require more complex rates than the above (like night rates or overtime, for example) you may use our Award Interpretation system shown here. If you have any questions please reach out to one of our friendly support team.
After creating your Pay Items, you'll need to assign them to your employees. To do so, please click "Payroll" at the top of the screen, then select "Employees". You'll see your staff listed below. Next, please select one to open them up for editing.
After opening an employee's profile, please navigate to their Pay Template. The Pay Template is a list of rates an employee can possibly be paid. You should not have more rates applied to an employee than necessary. To add one of your created Pay Items to an employee, please click +Add New Earnings. You will then be able to select one of your created rates.
When selecting the Earnings line, you will have the option to assign it a number of hours per week and a value per hour. We recommend setting the number of hours as 0, however regardless of the number set, it will be overwritten on export, as we'll show later. After adding the rate please click "Save" at the bottom of your screen.
When you later export the employees' hours to Xero, Xero will by default pay the Pay Item set as the employee's Salary and Wages Item. This is found under the Employment tab when editing that employee. You may adjust this by clicking "Set New Salary and Wages" as shown. Please ensure that in this section you set the Hours as 0. On this page you may also set the employee's Payroll Calendar (which must be done for you to export).
Now that your employee has all of their pay rates assigned to them, you'll need to connect to Deputy.
3. Connecting Deputy with Xero
You will need to connect your Deputy account to your Xero account.
Read Connecting New Integrations for an introduction to connecting to third party systems.
Selecting Xero will create a popup for you, so please ensure that your browser has pop-ups enabled.
Please click "Allow access".
Note: if you have multiple business accounts in Xero to choose from you may see a different pop up at this stage.
You will then be taken back to the list of options. You will notice that Xero will now show up as "Connected". This means that you can share data between Xero and Deputy (and vice versa).
4. Configuring the Deputy Xero UK connection settings
There are two additional connection settings you need to review and decide whether to turn them on or off according to your requirements:
Auto Sync Employees
Xero Pay Templates
Toggling Auto Sync Employees ON will sync your Xero and Deputy employees. This means that any employee information in Xero will be added in Deputy and vice versa. Please note: leave balances will now also sync between Deputy and Xero.
For more detail on using Auto Sync Employees please read our FAQ.
Your employees are matched between Xero and Deputy based on their full name and email address. If an employee does not have an email address, please set their Timesheet Export Code as their full name. If there is an inconsistency in data between Xero and Deputy, Deputy will be the source of truth and will overwrite Xero.
Another toggle "Xero Pay Templates" will appear under Auto Sync Employees once it's been toggled on. This will allow you to set Xero to the source of truth for pay templates and pay rates. We recommend turning this on and setting up pay rates within Xero.
For more detail on using Xero Pay Templates please read our FAQ.
Don't forget to click save after toggling these on!
5. Checking pay rates have synced
Employee information will automatically be synced every 15 minutes if you have toggled on "Auto Sync Employees". However, after the initial sync between Deputy and Xero pay rates can only be synced by manually triggering a "Sync with Xero".
You can trigger a sync by clicking "Sync with Xero" under the bulk actions list in the People tab. This will sync both the employee data and pay rates, by default Deputy will be the source of truth (if you have "Xero Pay Templates" turned on Xero will be the source of truth for pay rates).
To check whether an employee's pay rates have been synced into Deputy, first go to the People tab, click on "Also Show" and then "Pay Rates". If the rates have been brought across, you will see "Xero Payroll" as the Pay Pate.
If you don't see "Xero Payroll", make sure Auto Sync Employees and Xero Pay Templates are toggled on in the Payroll tab. Then, trigger an update by clicking "Sync with Xero" under the bulk actions list in the People tab. For more troubleshooting options, check out Troubleshooting Common Xero Errors.
After your employees have been synced, please approve your timesheets as shown here.
6. Exporting a timesheet to Xero
After approving your timesheets you will then be ready to export from Deputy into Xero. To do this, please navigate to Timesheets> Export Timesheets. Prior to export, verify that the Pay Period dates set in Deputy matches with the Payroll Calendar dates in Xero. Please select the employees of whom you would like to export and then select ‘Export Selected Items’.
Select "Xero Payroll" and then "Timesheets" from the drop-downs that appear in the dialogue.
You can also opt in to "Set timesheet status in Xero" to “Approved”. This means that your timesheets will automatically be approved when they show up in Xero. If you don't check this option timesheets will have to be approved again in Xero.
Note: If this check box is not visible on your account please contact our 24/7 support for assistance.
A message similar to the below will be displayed by Deputy to verify that the export was successful.
If you are having trouble exporting your timesheets check out our Troubleshooting Common Xero Export Errors page.
Exporting and Updating Timesheets
If you need to update an exported timesheet you will need to set the previously exported timesheet to "draft" in Xero and then export again.
Leave can be exported as timesheets, however, we need to ensure the following:
Leave types match in Xero exactly as they appear in Deputy. Please ensure that the "Leave Name" is exactly the same in both Xero and Deputy.
Leave types need to be assigned to your employees in Xero. To do this, navigate to the 'Payroll' tab in Xero, then click 'Employees'. Select the employee you are assigning leave to, and in the 'Time-off' tab, assign the appropriate leave types.
Leave timesheets cannot be used to update or delete existing "Time Off Request" in Xero. These need to be done manually.
7. Other Tips and FAQ
Xero Tracking works by matching areas in Deputy to Xero Category options. These should match between the two systems.
To add a category option in Xero, navigate to Settings> General Settings > Region > Category Options, then add the relevant area.
For more information on Xero Tracking, check out our help article.
Pay Rate Library
To use awards you will need to set Deputy as the source of truth for Pay Rates by toggling off "Xero Pay Templates" option in the Locations/Payroll tab.
Please see our FAQ for further assistance with connecting to Xero UK