xero-employeedetailsscrnYou might be excited about some of the things you’ve read about Xero. Your next thought might be, “Will it work for my company? I need a payroll solution.” The good news is that while Xero’s core system does not perform payroll (yet; more about that later), there are several payroll software solutions that interface with Xero to provide an integrated experience.

Xero is aggressively developing partnerships with payroll companies. As of this writing, there are four options, several which have just been announced in the last few months:

1)    ADP, a very large, traditional payroll company with robust Human Relations services for companies that need a comprehensive solution. If you need payroll solutions outside the U.S., ADP is an option.

2)    SurePayroll, which is a subsidiary of Paychex, another large payroll company. It specializes in offering affordable small business solutions.

3)    ZenPayroll, a promising startup led by Stanford grads and funded by Silicon Valley heavyweights. The next-generation interface is almost as beautiful as Xero’s.  

4)    Monchilla, which not only offers payroll that interfaces with Xero, but also is a complete cloud accounting system itself.

A Closer Look at One Payroll Option: ADP

ADP was the first payroll product to interface with Xero. Once you sign up with a sales representative, you will be assigned a customer service specialist who will take you through your first couple of payrolls. The entire payroll function is online, in the cloud, just like Xero is.

ADP’s dashboard is easy to use. From it, you can enter and change employee information, input hours and other payroll details, and run payroll. Depending on your package, you can add users, and employees can also gain access to their payroll history.

A General Ledger section is where the interface between Xero and ADP lies. Simply create the files for each payroll cycle, and Xero automatically receives your payroll numbers. You can control the level of detail you want to feed into Xero. A suspense account can be used as a clearing account for the payroll checks and transactions.

ADP offers many extras with some of its packages. These include direct deposit, complimentary payroll posters, new hire reporting, garnishment payment service, and state unemployment insurance management. Human Resources services, such as background checks, employee handbooks, job descriptions, and employee forms, are also available to save you time.

Xero + Payroll

Australian users of Xero are enjoying Xero’s new payroll function already. It launched in February 2013. The US version is next on Xero’s priorities, and you can read about their vision right here on their blog. http://blog.xero.com/2013/03/the-us-payroll-landscape-and-our-vision/