What is Xero Payroll?
Xero Payroll is the payroll capability available to US Xero customers through Xero's partnership with Gusto. Rather than running a native payroll engine, Xero integrates with Gusto so that pay runs, tax calculations, and filings happen in Gusto while the resulting transactions sync automatically into Xero's accounting ledger. This gives small businesses a single connected workflow for bookkeeping and paying employees across all 50 US states, including automated federal, state, and local tax calculations and filings such as W-2s and 1099s.
Payroll is layered on top of a standard Xero accounting subscription (Early, Growing, or Established plans), with the Gusto payroll service itself billed and managed within Gusto. Employees get self-service access to pay stubs, tax forms, and personal details through Gusto, while business owners get automated payday emails, next-day direct deposit, and synced payroll journals in Xero for accurate books without manual re-entry.
Key Features of Xero Payroll
Here are the powerful features that make Xero Payroll stand out from the competition. Packed with innovative tools and advanced functionalities, this software offers a range of benefits.
- Payroll processing across all 50 US states via the Gusto integration
- Automated federal, state, and local payroll tax calculations, payments, and filings
- Automatic W-2 and 1099 generation and filing
- Next-day direct deposit for employee wages
- Unlimited payroll runs and support for multiple pay rates (hourly, salaried)
- Payroll on Autopilot for automatic recurring pay runs
- Employee self-service portal for pay stubs, tax forms, and personal detail updates
- Automated payday email notifications to employees
- Two-way data sync between Gusto and Xero for payroll journals and reconciliation
- Digital, cloud-based storage of pay records and tax forms
Xero Payroll Pricing
Here are the pricing plans for Xero Payroll. Choose the plan that best fits your requirements and budget.
Early
$25/month
Base Xero accounting plan (payroll via Gusto billed separately, price not published by Xero)
Promotional rate $5/month for first 3 months, then $25/month. Includes core Xero accounting; payroll requires connecting Gusto.
Growing
$55/month
Base Xero accounting plan (payroll via Gusto billed separately, price not published by Xero)
Promotional rate $11/month for first 3 months, then $55/month.
Established
$90/month
Base Xero accounting plan (payroll via Gusto billed separately, price not published by Xero)
Promotional rate $18/month for first 3 months, then $90/month.
Xero Payroll Specifications
Get a closer look at the technical specifications and system requirements for Xero Payroll. Find out if it's compatible with your operating system and other software.
- cloud based
- web app
- ios
- android
- freelancers
- startups
- smes
- live support
- tickets
Xero Payroll Videos
Alternatives of Xero Payroll
AlternativesExplore alternative software options that can fulfill similar requirements as Xero Payroll. Evaluate their features, pricing, and user feedback to find the perfect fit for your needs.
Cloud accounting software with invoicing, expense tracking, banking, and inventory for growing businesses
Cloud payroll software that automates pay runs, tax filing, and compliance for US businesses
Payroll, HR, time tracking, and benefits administration platform for businesses of every size
GST accounting, billing, inventory, and payroll software for Indian SMEs
Xero Payroll Comparisons
Compare Xero Payroll with other similar options available. Explore the key differences to see why it's the top choice for businesses and individuals.
Overall Xero Payroll Reviews
Here's our unbiased review of Xero Payroll. Discover how our team of experts rates its features, ease of use, customer support, and other aspects that contribute to its overall appeal.