Xero Payroll + MyHR integration (NZ)

IRD and bank accounts

Leave request comments

Important updates to how Xero leave balances display

Overview

This article provides a comprehensive guide to setting up and using the integration between MyHR and Xero NZ Payroll.

It details how employee records and crucial personal information (like IRD numbers and bank accounts) are synchronised for new hires, and how to manually link existing staff.

Crucially, this article includes important updates on recent changes to how leave balances display in MyHR due to Xero's new NZ leave requirements, and provides guidance on requesting and approving leave in light of these changes.

What the integration does

The integration between MyHR and Xero NZ Payroll has been designed with 2 goals in mind:

To cut down on duplicate data entry when new employees join your business and when employees apply for leave in MyHR.
To provide employees and managers with the information and tools they need to request and approve leave without needing to log in to your payroll system.

How the integration works

For new employees

New employee records are automatically created in Xero NZ Payroll when:

A new employee e-signs their first employment contract in MyHR, or;
A signed copy of their employment contract is manually uploaded to MyHR.

The employee information entered when the person was added MyHR, along with any relevant personal details the employee entered before signing, such as bank account and IRD number, will be used to populate as many details as possible in Xero NZ Payroll.

This establishes the link between MyHR and Xero NZ Payroll for the employee that allows accurate and up-to-date leave balances from Xero to show in MyHR.

If you are not comfortable with an automatic link being established, the integration also allows you to choose to manually send new employee details from MyHR to Xero NZ Payroll at any time.

For existing employees

For existing employees, the integration process will require the link between both MyHR and Xero NZ Payroll to be established manually.

MyHR can assist you with the integration process.

Approved leave

Once an employee is linked between MyHR and Xero NZ Payroll, you and your employee will be able to see their up-to-date leave balances directly in MyHR and any leave you approve will automatically be sent to Xero.

Integration tips

IRD numbers and bank accounts

To ensure smooth processing in Xero Payroll, ensure that your employees enter the correct IRD numbers and bank account details into MyHR. Incorrect entries may prevent the transfer of this information to Xero Payroll.

Leave request comments

Xero Payroll accepts comments of up to 50 characters. Any comments exceeding this limit will be truncated on the payroll side. However, you can access the full leave request comments through MyHR for complete visibility and reference.

Important update: changes to how Xero NZ leave balances display

Xero has recently updated the requirements for how New Zealand leave must be recorded.

What you will notice

Change in units: Leave balances may now show in different units, such as weeks or days, instead of hours. MyHR will reflect whatever Xero uses for your specific leave types.
Leave requests remain the same: Employees must continue to enter the actual number of hours they plan to take when submitting a leave request in MyHR, just as they do today.
Xero handles conversion: Xero is responsible for taking the requested hours and handling the conversion to the appropriate deduction unit (days, weeks, or hours) from the employee's available balance.

Recommendations for payroll administrators

We strongly recommend the following steps for the next few pay cycles:

Review balances: Double-check your team’s leave balances in MyHR to confirm the new display units look correct.
Verify deductions: Carefully check leave calculations and deductions in Xero, especially for requests spanning multiple days or involving irregular work patterns.
Adjusting deductions: If Xero’s deduction does not look correct, you can easily adjust the amount that is deducted directly within Xero.
Employee reminder: Remind employees to double-check the hours they enter when requesting leave.

Find out how to set up your Xero payroll to MyHR integration

Support Options

If you need more help, our HR teams are always here for you!

If you have questions, message the MyHR team via the Ask Us chat feature or call us on:
NZ - 0800 69 47 69 (0800 MY HR NZ) or +64 9 887 3345
AU - 02 7908 2240
CA - 1 855 694 7224