This article explains how to set up xero accounting software so that owners wages and super are calculated properly
Step-by-step guide
...
Related articles
| Filter by label (Content by label) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
...
| hidden | true |
|---|
...
For the owners wages:
- Log into your xero account
- go to settings >> payroll settings
- go to the 'pay items' tab
- set up a new pay item called 'ordinary hours owners'
- map this pay item to the correct account 'wages and salaries associated persons' in the same section
- save this item
- then go to xero main manu >> payroll >> employees
- select the business owner >> pay template >> and set their primary earnings rate to 'ordinary hours owners'
This will now post the owners wage to this account each time you do a payrun. This is the account smartvetapp uses to work out owners wages and their adjustments.
Please note that account names and pay items are customisable, so the above is an example of how most accountants name the accounts and pay items, but they may be named slightly differently.
For the owners superannuation:
--todo--