ADP doesn't have a direct journal entry integration with Xero. To record ADP payroll in Xero, you need to download the ADP payroll summary, identify the line items, and create a manual journal entry. Here's how.
Step 1: Download the ADP payroll report
In ADP, go to Reports > Payroll and download the Payroll Register or Payroll Summary for the relevant pay period. The summary report gives you the totals you need for the journal entry.
Step 2: Identify the key line items
From the ADP payroll summary, extract:
- Total gross wages → debit Wages Expense
- Federal income tax withheld → credit Federal WH Payable
- Employee Social Security & Medicare → credit FICA Payable
- State income tax withheld → credit State WH Payable
- Employer Social Security & Medicare → debit Payroll Tax Expense, credit FICA Payable
- Net pay (direct deposits) → credit Net Wages Payable
Step 3: Create a manual journal in Xero
Go to Accounting > Manual Journals > New Manual Journal. Enter the pay date, a narration like "ADP Payroll – [period]", and each line item. Verify the entry balances before posting.
Example ADP to Xero journal entry
| Account | Debit | Credit |
|---|---|---|
| Wages Expense | $12,500.00 | |
| Payroll Tax Expense | $1,441.25 | |
| Federal WH Payable | $1,875.00 | |
| FICA Payable | $1,912.50 | |
| State WH Payable | $375.00 | |
| Net Wages Payable | $9,778.75 | |
| Total | $13,941.25 | $13,941.25 |
PostBooks automates this entire process — upload the ADP CSV, your Xero account mapping is applied automatically, and a ready-to-import Xero manual journal is generated. Learn more about ADP to Xero.