Xero CEO Rod Drury says the company is building upon its purchase of payroll provider Monchilla. He also says that the move "is the start of a wave of product innovations launching early this year."
Users pay $30 per month under the standard plan to receive full accounting and payroll functionality for five employees. This covers direct deposit, time sheets, federal and state electronic tax services, and general ledger integration.
Xero claims to be unique in the market for its ability to track employees' vacation balances on the balance sheet as a liability. When small businesses run payroll, the Xero accounting dashboard automatically updates to show a real-time view of cashflow balances, minus employee salary and wages and allowing for vacation balances.