An important task of your Payroll Reconciliation is to ensure the Wages Payable Clearing Account balances to nil. 

When you post a pay run, Xero posts entries in the General Ledger Payroll Expense and Liabilities Accounts. The total Net Wages is then posted to the Payroll - Wages Payable (810) account. When the wages payment transaction appears on the Bank Feeds, these transactions should be posted back to the Wages Payable (810) account to clear the entry generated by the Pay Run. 

The Wages Payable account is there a 'control' or 'clearing' account and when payroll is completed, this account should balance to nil.

Before lodging any PAYG Withholding obligations to the Australian Taxation Office, you should ensure the balance of the Payroll - Wages Payable (810) account is nil.

1. From the Xero Dashboard > Accounts Watchlist, check the YTD value of the Wages Payable account
   
   è  The Accounts Watchlist
   
   
   
   
2. If the YTD balance is not $0.00, you will need to investigate and sort the discrepancy:
   
   a) Check the unreconciled Bank Feeds > check if any wages payments are still not reconciled in the bank feeds
   b) Run the Wages Payable reconciliation report

Run the Wages Payable Reconciliation Report

1. Go to Accounting > Reports > [Custom]
2. Run the report: EOP - Clearing Acc. Reconciliation Wages Payable
   
   è  The Wages Payable Reconciliation report
   
   
   
   
3. Check the various entries and fix any incorrect ones.