Payroll Checklist Before the Christmas Break What Every Australian Business Must Do in Xero
- johnry8
- 3 days ago
- 3 min read
The Christmas and New Year shutdown period is one of the busiest times of the year and payroll mistakes made in December often do not show up until January when your team is already back at work.
Before you switch on your out of office reply, make sure your payroll is sorted so your staff receive the correct pay.
At Rise Accountants, we support Brisbane and Queensland businesses every day with payroll compliance and setup. Below is the checklist every employer should complete before heading off for the holidays.
1. Confirm Queensland Public Holidays in Xero
You must ensure the correct Queensland holiday group is selected for every employee. Incorrect holiday settings can lead to underpayment or incorrect leave calculations.
Queensland Public Holidays for the Christmas and New Year Period
Christmas Eve – 24th December
Christmas Day - 25th December
Boxing Day – 26th December
New Years Day – 1st January
These days must be recorded as public holidays in Xero. Even if staff are on annual leave they are still paid for any public holiday during their leave period.
How to check: Payroll - Employees - Select Employee - Employment tab - Holiday group
2. Finalise Annual Leave for the Christmas Shutdown
Most teams take leave during the Christmas break and all leave requests must be submitted and approved before payroll is processed.
Send a reminder to employees to submit leave
Approve or decline leave in the Payroll Overview
Confirm whether negative leave balances are allowed
Determine whether unpaid leave will apply
3. Review Annual Leave Loading Requirements
Many Queensland based employees receive annual leave loading usually 17.5%.
You must confirm whether each team member is entitled to leave loading based on their award or employment contract.
How to check in Xero: Payroll – Employees - Select employee - Taxes tab - Eligible for leave loading
Rise Accountants hot tip: Leave loading compliance is one of the most common issues Fair Work investigates. A quick review now avoids backpay later.
4. Schedule Pay Runs in Advance
If your payday falls when the business is closed, you can schedule your pay runs ahead of time.
Ensure staff are paid during the shutdown
Reduce stress by completing payroll early
Avoid processing errors while on holidays
5. Prepare Rosters or Timesheets if the Business Stays Open
If your company will operate during the Christmas period, you need to confirm rosters early.
Notify staff of their roster
Confirm penalty rates and public holiday rates
Ensure timesheets match scheduled hours
Plan ahead if pay is processed before hours are finalised
6. Check Superannuation Cut Off Dates
Super processing times slow down in December because of public holidays.
Submit super batches early so payments land before cut off
Avoid ATO late payment penalties
Confirm clearing house delays
7. Review and Update Staff Details Before 2026 Payroll Begins
Before you wrap up the year review and confirm:
Current pay rates or award updates
Bank details
Tax file declarations
Employment type or working hours
New starters or exiting employees
8. Download Payroll Reports for Audit and EOFY Preparation
Before logging off for Christmas download key reports such as:
Leave balances
Pay run summaries
YTD earnings
Superannuation reports
How RISE Accountants Can Support Your Payroll Over Christmas
If payroll feels overwhelming especially at year end, we can handle it for you.
Rise Accountants can support you with:
Reviewing your Xero payroll setup
Ensuring award and public holiday accuracy
Checking leave loading and entitlements
Supporting multi entity and growing businesses in Queensland
Get Payroll Ready Before Christmas
Want help before the holiday rush?
Book your free 15 minute discovery call with RISE Accountants