Integrating Xero Payroll (UK and Australia) with BambooHR | Integration
What are the key steps and essential rules for new BambooHR customers integrating with Xero UK Payroll and Xero Australia Payroll?
Summary - Xero Payroll (UK & AU)
The BambooHR integration with Xero Payroll (UK & AU) allows new customers with employees in the UK and/or Australia to automatically sync key employee demographic and compensation data from BambooHR to their Xero Payroll account. This guide explains how new customers already using Xero Payroll in the respective countries can enable and manage the integration.
Common Questions - Xero Payroll (UK & AU)
You must only update this information in BambooHR. Updates made directly in Xero will not sync back to BambooHR, causing the two systems to become out of sync.
Currently, the integration is applicable for new customers who have employees located in the UK or Australia.
Step-by-Step Setup and Management
1. Enabling the Xero Payroll Integration
In-App Installation:
- Navigate to Settings > Apps.
- Find the relevant app: Xero (Payroll), AU or Xero (Payroll), UK.
- Click Install. A modal will inform you that your employee data will automatically sync with your Xero Payroll account.
- Click Install on the modal to complete the installation.
2. Account Changes and Required Fields
When the integration is installed, new standard fields are automatically added to your account if they have not already been enabled. These fields are also automatically added to the New Employee form.
| Integration | Field Automatically Added | Location Purpose |
|---|---|---|
| UK Only | NIN (National Insurance Number) | Added to the Personal tab. |
| UK Only | Title (e.g., Mr., Mrs., Miss, Dr.) | A custom list field added to the Personal tab with pre-populated list options that can be modified. *This is NOT the same as the Job Title field on the Job tab. |
| UK and AU | Standard Hours per Week | Added to the Job tab if not already enabled. |
If a custom field called "Title" already exists in the account, the new Title field will not be created for UK accounts.
3. Connecting BambooHR to Xero (Onboarding Flow)
Installing the integration is only part of the process; you must also connect it to your Xero account. The ideal flow for connecting your accounts is through the onboarding modules found on the Admin's Home page during Implementation.
1. If an admin installs Xero (Payroll) for the respective country before the Core Implementation service starts, a new Data Sync step appears as part of the Employee Data module.
2. Click Add Integration. Select the integration (Xero (Payroll), AU or Xero (Payroll), UK) and click Connect.
3. A modal will appear to confirm you are okay with connecting your accounts to sync employee information updates.
4. Check the I Accept box and click Next. A new tab will open for you to enter your Xero authentication credentials.
5. After entering your credentials, your employees will be ready for import from Xero.
Data Import and Cleaning
Files containing demographic and compensation data are brought over from Xero and cleaned by your BambooHR Project Manager before being imported to BambooHR.
- Data Stored in Xero: Demographic data and compensation data (see #5 below).
- Data Not Stored in Xero: Job info and employment status data must be imported through the usual process on the Job Data step.
Once your BambooHR Project Manager imports your data, they will mark this step as complete within the Data Sync tab of the Employee Data onboarding module.
4. Adding a New Employee
To add a new employee, navigate to People > + New Employee in BambooHR. When the integration is active, a dropdown menu will appear under the Payroll section on the New Employee form. If visible, the Payroll provider dropdown (including the Xero option) is required for all new employees.
1. Select the appropriate option: Xero (Payroll), AU or Xero (Payroll), UK.
Note: If BambooHR Payroll is also enabled, that option will appear as well. The dropdown always includes a None or External option for employees not using BambooHR or Xero Payroll.
2. If a Xero (Payroll) option is selected (UK or AU) and the profile in BambooHR is saved, the integration will automatically create a profile for that employee in Xero.
5. Ongoing Data Synchronization
Once an employee syncs to Xero, either through initial import or selection on the New Employee form, the data automatically updates in Xero whenever someone with access updates the fields in BambooHR.
Key Demographic and Compensation Fields Synced (BambooHR to Xero):
| Field | Xero (Payroll), Australia | Xero (Payroll), UK |
|---|---|---|
| First Name, Middle Name, Last Name | Yes | Yes |
| Birth Date, Gender | Yes | Yes |
| Address Line 1 & 2, City, Country | Yes | Yes |
| State | Yes | No |
| ZIP/Postal Code | Yes | Yes |
| Mobile Phone | Yes | No |
| Work Phone, Work Email | Yes | Yes |
| Hire Date | Yes | No |
| Termination Date | Yes | No |
| Effective Date (from Comp table) | Yes | Yes |
| Pay Rate, Paid Per, Pay Type | Yes | Yes |
| Standard Hours per Week | Yes | Yes |
| Title (Mr., Mrs., etc.) | No | Yes |
| NIN (National Insurance Number) | No | Yes |
| Partner Specific Employee ID* | Yes | Yes |
*The Partner Specific Employee ID field will not be visible to you, but exists to connect employees from BambooHR to Xero.
6. Error Notifications
The same error notifications are triggered for Xero (Payroll), Australia, as they are for Xero (Payroll), UK. BambooHR will notify Full Admin users via email in several scenarios:
• New Hire Sync Failure: If a user cannot create a new employee profile in Xero due to missing required information (e.g., Date of Birth, Gender), an email will detail what needs updating in BambooHR. The integration will then create the profile in Xero.
• Sync Errors: If updated information cannot be sent to Xero (usually because data was deleted from BambooHR but is required in Xero), an email will be sent detailing the fix needed. These emails are batched every 30 minutes.
• Data Out of Sync: Every Tuesday morning, the system checks syncing fields for inconsistency between BambooHR and Xero. An email will be sent if inconsistencies are found, typically caused by changes made directly in Xero. Correct the data in BambooHR to sync and resolve the conflict automatically.
• Generic Error: For other errors, you will receive an email with an error code and instructions to contact the Support team.
Important Notes & Limitations
• Current Audience: This integration is only available to new customers who use Xero (Payroll) in the UK or Australia.
• Data Source Authority: You must only update synced fields in BambooHR.
• Settings Connection: You must connect accounts through the Data Sync module during onboarding instead of manually in BambooHR Settings.