Xero Payroll Pay Run Failed Error

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How to Fix Xero Payroll Pay Run Failed Error

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QuickBooks Payroll Error PS060

Xero Payroll Error · Pay Run Failed · Fix Guide

How to Fix Xero Payroll Pay Run Failed Error

Xero displays an error when posting a pay run -- "Pay run could not be completed" or the pay run posts but direct deposits fail to process.

At QuickFix Bookkeeping, Xero pay run failures fall into three categories: employee setup errors (missing tax codes, bank accounts, or leave balances), payroll calendar mismatches, or bank account validation failures for direct deposit. The error message in Xero usually identifies which employee or field is causing the failure.

Common Pay Run Failure Causes

Employee Setup Incomplete

Missing tax file number, invalid bank account BSB, or leave balance in negative. Check Payroll and gt; Employees and gt; each flagged employee's profile.

Pay Period Overlap

A previous pay run overlaps the current period dates. Check Payroll and gt; Pay Runs for any draft runs covering the same period and delete or post them first.

Bank Account Invalid

Employee bank account BSB or account number is invalid or has changed. Payroll and gt; Employees and gt; select employee and gt; Bank Accounts and gt; verify details.

How to Fix Xero Pay Run Failed

METHOD 1Read the Error Message + Fix the Named EmployeeAlways start here
1

Xero's pay run error message names the specific employee and field causing the failure. Click the error to expand it and gt; navigate directly to that employee's profile (Payroll and gt; Employees and gt; select employee) and gt; fix the flagged field (tax code, bank account, leave balance) and gt; save and gt; retry the pay run.

2

If multiple employees are flagged: fix them all before retrying. The pay run will not post until every employee's setup is complete and valid.

METHOD 2Delete Draft Pay Run + Start FreshPay run stuck in draft or overlap
1

Payroll and gt; Pay Runs and gt; find any draft pay runs for the same period and gt; delete them. Then create a new pay run for the correct period. If a previously posted run overlaps: you may need to void it first before creating the new one.

METHOD 3Check Payroll Settings + Tax Authority ConnectionPay run posts but lodgement fails
1

Payroll and gt; Payroll Settings and gt; confirm the organisation's ABN, payroll calendar, and tax authority connection are all set up correctly. For STP (Single Touch Payroll) failures: Payroll and gt; Single Touch Payroll and gt; check the ATO connection status and reconnect if needed.

Xero Pay Run Still Failing After Fixing Employee Setup?

Let QuickFix Bookkeeping Resolve Your Xero Payroll.

Complex pay run failures often involve payroll item configuration or superannuation fund setup issues that require a full payroll audit to resolve correctly.

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