Exporting Payroll journal to Xero/Sage

Accounting Integration

The Accounting section allows you to connect your payroll data to external accounting software. Freepayroll currently supports integrations with Xero and Sage, enabling you to export your Payroll Journal directly from the system.


Start a New Submission

  1. Go to ‘Reports’ in the left-hand menu.
  2. Click 'Payroll Journal'
  3. Click on the 'Integration' tab, then in ‘New Submission’.
  4. A modal will appear displaying both integrations: Sage on the left and Xero on the right.

You must click here to access our Accounting Integration Interface

Here, click on 'Integration' and, once you're ready you can click in New Submission to create a new one or, if you already have others submissons, you can see them here.



A modal will appear displaying both integrations: Sage on the left and Xero on the right.

Xero Integration


Connect to Xero

  1. Click Xero on the right side of the modal.
  2. Enter your Xero login credentials.
  3. Grant permission for Freepayroll to access your Xero organisation.
  4. Once connected, you will be asked to:
  5. Select the pay run dates you wish to export.
  6. Choose whether to export the journal:
  • For each employee individually
  • As a single journal for all employees
  1. Select the Tax Rate to be used in Xero


Here we're using a demo account to show you all the possibilities with Xero


Nominal Ledger Mapping Page

After clicking Continue, you will be taken to the Nominal Ledger Mapping screen.

**What is Item Mapping? **

Item mapping is the process of assigning each payroll component (e.g., Gross Wages, PAYE, NICs) to the correct nominal account in your accounting system.

This ensures your exported journal is posted accurately in Xero.

Below is a short, formal description for each field exactly as seen in the interface.


Nominal Ledger Mapping

Debits

Gross Wages

The total gross pay before any deductions. This is normally posted to a wages or salary expense account.

Employer NI Contribution

The employer’s National Insurance liability. This is usually recorded as an employer cost or statutory contribution expense.

Employer Pension

The employer’s pension contribution for the period. Mapped to a pension expense or employer contribution account.


Credits

PAYE

The amount deducted from employees’ wages for income tax (PAYE). This is normally mapped to a tax liability account.

Total NICs

Employee National Insurance contributions deducted through payroll. Posted to an NI liability account.

Student/Postgraduate Loans Deductions

Amounts deducted from employees’ wages for student or postgraduate loans. These are normally mapped to a loan repayment liability account.

Total Pension Contribution

The pension contributions deducted from employees (employee share). Usually mapped to a pension liability account.

Net Wages

The total amount payable to employees after all deductions. This is posted to a wages payable or net wages liability account.


Advanced Mapping Options

Clicking Advanced allows you to define conditions for each payroll item.

For example, under Gross Wages, you may specify:

  • Whether the employee is or is not a company director
  • Whether the mapping applies only when a particular pay item, rate, or pay type is used
  • The specific nominal account the item should be mapped to when these conditions are met

This feature provides flexibility for organisations with more complex accounting structures or multiple wage types.


You must click on the Plus Button


For example, under Gross Wages, you may specify: Whether the employee is or is not a company director


Once you add the information and click Save, it will show up below the Field



Review Journal Export

Once you complete all mappings and proceed, a journal preview modal will appear.

This modal includes:

  • Date of each payroll item
  • Description
  • Nominal account used
  • Debit amount
  • Credit amount


As shown in your screenshot example with Gross Wages, Employer Pension, PAYE, NIC, Pension, Net Wages, etc

Sending the Journal to Xero

After reviewing your journal:

A final modal will appear asking you to “Send to Xero”.

Once confirmed, the payroll journal is exported directly to your Xero organisation.


And it's done!

























Updated on: 17/11/2025

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