Pay items

Question 1

What is a pay item?

Answer 1

Pay items are different types of payments or deductions included on a payslip

Question 2

what are the 6 types of items in payroll

Answer 2

Deductions (tax)
Reimbursements
Kiwisaver/ superannuation
earnings (pay)
leave
statutory deductions

Question 3

What are the Earnings Categories currently available in payroll?

Answer 3

Regular Earnings,
Other Gross Earnings,
Withholding Income
Discretionary Payments.

Question 4

What are the regular earning type used for?

Answer 4

the hours that a staff member typically works.

Question 5

What is the Gross Earnings type used for in payroll?

Answer 5

to add rates for overtime etc.

Question 6

What is the With holding income type used for in payroll?

Answer 6

payments made to contractors and you will need to select the rate type and then either the amount or the type of units and the rate per unit.

Question 7

Discretionary Payments would be used for?

Answer 7

a one off payment/when a one of payment is used

Question 8

The most common types of reimbursements to employees are ?

Answer 8

Milage and meals

Question 9

The Superannuation Category requires you to select either Complying or Other. Complying Funds must be what?

Answer 9

must be registered with the New Zealand Financial Markets Authority (FMA).

Question 10

To search for a Superannuation scheme where do you look?

Answer 10

IRD website or companies office website

Question 11

Do you pay tax on Payroll Giving? i.e giving a portion of your pay to an approved charity?

Answer 11

No, you qualify for a tax credit

Question 12

If you make a regular deduction from pay, i.e payroll gicing or other deductions the Standard Amount Category should only have a value entered when it is the…what?

Answer 12

the same amount for all employees every time, otherwise, leave it blank and

Question 13

Pathway to add a new employee into xero is?

Answer 13

Payroll menu>employees>add new

Question 14

What does Xero do if you select ESTIMATE OPENING BALANCES?

Answer 14

Xero will calculate pay entitlements using the start date of employee, will show you last 12 months or from when ever staff stated if under 12 months

Question 15

Can ESTIMATED BALANCES be changed to accurately reflect entitlements?

Answer 15

Yes, Xero will calculate entitlements and you can alter them before saving

Question 16

what are the four default leave types

Answer 16

Holiday pay
annual leave
alternative holidays
sick leave

Question 17

what is the minimum percentage of holiday pay?

Answer 17

8% gross earnings

Question 18

what is the minimum annual leave?

Answer 18

four weeks

Question 19

what is the minimum and maximum sick leave per year?

Answer 19

10 days minimum and 20 days maximum

Question 20

Whats the maximum number of sick leave days you can accumulate before you need to use them?

Answer 20

20 days

Question 21

How many sick days are you entitled to each year (starting after 6 months of employment)

Answer 21

10 days per year, can roll over to the next year

Question 22

How many bank accounts can an employees pay be split between? or how many bank accounts can you add to an employees payroll file?

Answer 22

up to 4 bank accounts

Question 23

is it possible to select Holiday pay as the leave request type?

Answer 23

No, so if an employee has a leave balance but noannualleave then when the annual leave request is created this will create a negativeannualleave balance. Once the employee’s anniversary date occurs the Holiday pay will convert to Annual leave and the negative annual leave is deducted from this.

Question 24

When leave is approved, when does xero update the leave due amount?

Answer 24

One the payment has been made, not before

Question 25

When leave is taken over a period that includes a public holiday what does Xero do?

Answer 25

the public holiday is taken into account and automatically excluded from the calculation

Question 26

Will xero disallow a leave request when there is no leave allowance available

Answer 26

No, it will add it as a minus amount i.e -4 days

Question 27

What is Xero Me?

Answer 27

An app Employees can use Xero Me to check pay history, submit timesheets, request leave and manage leave requests from within the app. They can also view payslips and save them as PDFs, check leave balances and update personal details.