To explain how to link Magnifi’s payroll projection accounts (from labour drivers) to your internal payroll accounts (e.g., in Xero). This ensures projected labour costs can be compared accurately to your actual payroll costs for reporting.
When you are using Labour Drivers to project wages and on-costs such as superannuation, payroll tax, workers compensation, and overtime.
When you want Magnifi’s projected payroll costs to align with your accounting system’s payroll accounts.
When you prefer to manually enter payroll projections and need the flexibility to leave accounts unlinked.
When you build projections using Labour Drivers, Magnifi captures employee details (hourly rate, hours per week, etc.) and calculates the following accounts:
These Magnifi payroll accounts are stored in the background and will not appear in the Profit & Loss Projection until you link them through Chart of Accounts → Payroll Link.
Once linked, the accounts appear in the Profit & Loss with an asterisk (*) to show they are derived from Labour Drivers.
If you double-click on one of these accounts, you’ll see a breakdown of employee balances included in the projection.
You have two wage accounts: Wages A and Wages B.
In Magnifi, you link both of these to the Magnifi account Wages.
The actual values from Wages A and Wages B will now appear in the Profit & Loss under Magnifi’s projected Wages account (the values are combined into one).
This ensures alignment between your accounting system and Magnifi for Actual vs Budget reporting.
💡 Tip: If you want to keep reporting on Wages A and Wages B separately in Actual vs Budget reporting, consider using Divisions:
Set up Division A and Division B under Chart of Accounts.
Link Wages A to Division A and Wages B to Division B.
Assign employees to the correct division.
This approach works well when you want to track department-level reporting (mini P&Ls).
If you don’t link an account: the Magnifi payroll account will not appear in the Profit & Loss, and you can enter or adjust values manually.
If you are not using Labour Drivers: you can project payroll manually by entering values against your own accounts (e.g., Wages A & Wages B) and use calculations for on-costs.
Example: Superannuation = 12.5% of Wages A + 12.5% of Wages B.
Labour Drivers are recommended for accurate projections but are optional.
Payroll accounts with an asterisk (*) only appear in the Profit and Loss once they’ve been linked in Payroll Link.
Accounts without an asterisk are your own payroll accounts from the Chart of Accounts.
Linking is flexible — you can link some accounts and leave others manual if you prefer.