XBert Type: Standard
Accounting Software: Xero
Country Restriction: AU only
Risk Type: Payroll Risk
Business Function: Payroll
Overview
The "Employee Annual Leave setting incorrect" XBert identifies employees whose annual leave configuration in Xero is incorrectly set not to be paid out upon termination. This setting impacts final pay calculations and could result in inaccurate employee entitlements and reporting.
What it does
This XBert:
Runs exclusively for Xero Australia users
Reviews the annual leave type configuration for each employee
Flags employees whose leave setting is configured as "Not Paid Out" on termination
Highlights potential issues with employee entitlement and payroll compliance
How it works
XBert checks each active employee with annual leave entitlements and inspects their configuration for termination scenarios. The expected setting for annual leave is that it should be paid out upon termination. If the "Not Paid Out" flag is active instead, an alert is triggered for review.
Example/Use Case
Bob is setting up payroll in Xero for Acme Inc. All employees are entitled to annual leave. However, Bob is unaware that the default configuration for leave types is set to not pay out leave on termination. This administrative oversight results in a number of staff members being configured incorrectly. When an employee resigns, their final payout is short — leading to HR complications and an underpayment breach. XBert flags this configuration issue before it becomes a problem.
Accounting software
Xero only
Which countries it supports
Australia only.
Processes
This XBert falls under the Payroll Services category.
To action:
Review the leave settings for flagged employees
Check the “Paid Out on Termination” status under the Annual Leave type
Update the configuration in Xero if required
File the XBert to clear the alert from your dashboard
Ensuring the correct payout settings for leave types prevents payroll underpayments and ensures compliance with Fair Work and ATO reporting standards.