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- 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' . Set this in the same way as the ordinary hours rate on the same screen.
- 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 menu >> payroll >> employees
- You must do this step now not later: select the employee >> employment tab >> ordinary earnings rate >> set this to 'ordinary hours owners'
- select the employee/business owner >> pay template >> and set their primary earnings rate to 'ordinary hours owners'
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