Error Saving Pay Item

Xero can occasionally have issues saving new Pay Items when some of the existing pay items have invalid setup.

In order to resolve this:

  • In Xero navigate to Payroll> Payroll Settings> Pay Items
  • Check all pay items to make sure every pay item has a valid expense account (i.e. the account is active and has a type of Expense). If not then update it to one that is.
  • Be sure to click Show Inactive and also check/update these as required.