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I always felt that with the programming mite of MYOB that they could have found (which begs me to conclude they didn’t want to) a way to continue printing on the industry standard slim dot-matrix payslip.

Instead they FORCED all users to move to an A4 Lineflow Payslip at much great cost and only available from MYOB.

Anyway, MyPayslips not only has made available their own A4 Lineflow Payslip but they have also discovered a way to continue using the old payslips – even though MYOB says this is no longer possible.

Justin Ryan of Payroll System Limited (who run MyPayslips) says “Considering how totally unhelpful MYOB was in relation to this whole matter we will keep the details on how this works to those who purchase payslips from us as at least we took the time to find a solution”.

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Payroll software companies Smoothpay and Acepay are both offering MYOB customers special pricing to help them move to their respective products.

Ace Pay is offering all MYOB users a special ‘cross grade’ price of $250 plus GST instead of the standard $795 plus GST.

Smoothpay is also offering a special ‘cross grade’ price of $250 plus GST and will also include a FREE data conversion.

One advantage of this is that unclaimed KiwiSaver top-ups from the 2009 tax year can still be claimed – worth on average $650 per annum at no cost to the employer.

So if you are one of the many MYOB users who have answered our survey who are not impressed by the Maintenance and Support charges then maybe you should have a look at both of these products.

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Following on from MYOB’s announcement that everyone needs to purchase an Annual Support Plan, which is on top of the Annual Maintenance fee for their EXO Payroll, it may surprise everyone to know that they have also raised the cost of the Annual Maintenance fees.

So are we getting hammered by MYOB or do they provide value for money? A quick review of what their competition charges clearly shows that MYOB’s new acronym should be Milking You’s Our Business.  See below:

Program Staff Licence Annually % of Licence Support
ACE Payroll 50 $795.00 $195.00 24.53% Yes
SmoothPay Medium 50 $795.00 $240.00 30.19% Yes
IMS Payroll Partner 50 $999.00 $360.00 36.04% Yes
WageEasy* 50 $3,500.00 $700.00 20.00% Yes (HR & Payroll)
PayGlobal Express 50 $2,750.00 $880.00 32.00% Yes
MYOB EXO 50 $2,030.00 $1,250.00 61.58% No
ACE Payroll 100 $795.00 $195.00 24.53% Yes
SmoothPay Premium 100 $1,250.00 $255.00 20.40% Yes
IMS Payroll Partner 100 $1,500.00 $500.00 33.33% Yes
PayGlobal Express 100 $5,500.00 $1,210.00 22.00% Yes
WageEasy* 100 $7,000.00 $1,400.00 20.00% Yes (HR & Payroll)
MYOB EXO 100 $2,690.00 $1,535.00 57.06% No
* Pricing to be confirmed Pricing is based on multi user access

So as we can see MYOB is charging the highest Annual Maintenance fee and they expect users to pay for Support on top of that. Well as some readers have already commented ‘they have had enough’ so will be moving off their system to something new.

We would love to hear how you feel about the new charges imposed by MYOB so please complete our survey by clicking HERE!

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MYOB, have recently announced that they are discontinuing Pay-Per Call support for their Payroll Software package.

This comes on top of MYOB charging the highest Annual Maintenance fees (and don’t include any support) of all comparable payroll software products in New Zealand.

For the Annual Maintenance you get a product that has seen zero development (only changes for tax legislation) for the last two to three years, and in fact MYOB are now removing functionality.

Their newsletter is reproduced below and when we contacted them to find out what the Support Plan was going to cost the response was:

We acknowledge receipt of your enquiry regarding the continuance of our Support facility once the current Pay Per Call arrangements cease as from 1st July.

We are currently finalising the arrangements surrounding the processes and costs involved with the changes and we will be in touch with more details in the not too distant future.

We are currently working on an article showing just how expensive the MYOB EXO product has become and what their competition is charging….

You have received this email on karen@targetpayroll.co.nz as a valued MYOB client. If you would prefer not to receive promotional emails from MYOB NZ Ltd, please send your details in an email with Unsubscribe in the subject line to exo@myob.co.nz . Please note that unless further advised, MYOB will still contact you regarding upgrade and compliance issues relating to your software. For the latest version of the MYOB Privacy Policy, please click here

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There’s Hope for Employers
On the “Good News” front, there is case law suggesting that in those instances where an employee is “caught with his hands in the till” and where a faulty dismissal procedure has been followed … read more…

Can an employer dismiss an employee if they have a long term sickness/injury?
In many situations the answer is yes. For more information… click here

ATV (all terrain vehicle) victim had not ridden one before
Employers who require employees to use ATVs are legally required to ensure that employees are well trained in their use, the Department of Labour says after sentencing in a prosecution over an ATV fatality … read more…

First Aid in the Workplace
Under Health and Safety regulations, Employers are required to take all practicable steps to ensure first aid facilities are provided … read more…

First Aid Training Available at EAL
Employers Assistance Ltd runs a series of First Aid Training courses and you are invited to send an employee or two for training. The next courses are Thursday 17th June in Albany and Thursday 1st July in Lopdell House, Titirangi. The refresher courses run from 8:30am to 12:30pm, full courses 8:30am to 4:30pm. For more information and booking … read more…

Lateness is one of those perennial bug bears that causes a great deal of upset. So how much is too much? What are the rules? … read more…

Upcoming Seminars
EAL are running a series of Employment Law seminars nationwide later this year (free to ESP members). In preparation for this please feel free to email us your requests for topics you would wish to have covered at these events. Please email us on info@employers.co.nz.


A number of nasty surprises have emerged from yesterday’s Budget, says the Council of Trade Unions. These include:

Allowing employers using the Job Opportunities subsidy to dismiss workers in the first 3 months with no appeal rights

Removing the tax rebate on redundancy pay

Slashing employment relations education funding.

CTU President Helen Kelly said: “It is a major concern that employers can claim up to a $5,000 subsidy through the Job Ops scheme yet unfairly dismiss that subsidised worker desperate for a chance to work given the ongoing impact of the recession on young people. To remove the right of appeal against unfair dismissal from such vulnerable workers is grossly unfair.”

Kelly said that the removal of the tax rebate for redundancy pay should be reconsidered. At the present time a worker who receives redundancy compensation and therefore ends up in a higher tax bracket can get a 6 percent reduction in tax on their compensation. The same principle should apply from October even though the rebate would be a different amount given changed tax scales.

The cut in employment relations education (from $2 million to $889,000) will undermine opportunities for initiatives in areas such as employment rights, representative training, and health and safety. “It is a sign that the Government does not see any real significance in the role of fostering positive employment relations,” said Kelly.

Source: http://www.voxy.co.nz/politics/nasty-surprises-revealed-budget/5/49479

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20 May 2010

Budget 2010 announced a comprehensive package of tax reforms. The Government has released a large amount of information in the form of fact sheets and media statements.  These include information on:

Personal tax cuts

All personal income tax rates will be cut from 1 October. See:

The Government’s media statement and Personal tax cuts fact sheet. Individuals and families can get an indication of how the Budget tax changes may affect them at www.taxguide.govt.nz.

GST rate lift and compensation measures

The rate of GST will increase from 12.5% to 15% from 1 October 2010, with compensation for certain groups, such as superannuitants, beneficiaries and others receiving government assistance also in place from 1 October. See:

GST and compensation fact sheet
NZ Super and Veterans Pension fact sheet

Company tax cut

The company tax rate will fall from 30% to 28% from the 2011–12 income year. See:

Company tax cut fact sheet

Lower savings tax

The top tax rate for most portfolio investment entities (PIEs), including KiwiSaver accounts will be reduced from 30% to 28% from 1 October. The other PIE rates will also fall to align with the new personal tax rates. See:

Savings tax changes fact sheet

Building depreciation

Depreciation deductions will no longer be allowed for buildings with an estimated useful life of 50 years or more, from the 2011–12 income year. See:

The Government’s media statement and Building depreciation fact sheet.

Depreciation loading

Businesses will no longer be able to claim 20 percent accelerated depreciation on new plant and equipment after Budget day. See:

Depreciation loading fact sheet

Working for Families rules strengthened

From 1 April 2011 people will no longer be able to use investment losses to reduce their income so they can claim Working for Families payments.  See:

Working for Families changes fact sheet

LAQC and QC changes

Loss attributing qualifying companies (LAQCs) and qualifying companies (QCs) will become flow-through entities for tax purposes. An issues paper on implementing the new rules will be released on this website later today. See:

LAQC and QC changes fact sheet

Thin capitalisation rules

The safe harbour in the inbound thin capitalisation rules will be reduced from 75 percent to 60 percent from the 2011-12 income year. See:

Thin capitalisation rules fact sheet

More funding for Inland Revenue to strengthen tax compliance

Inland Revenue will receive more funding to increase its audit and compliance activity around debt collection, the hidden economy and property transactions.  The GST rules will be changed from 1 April 2011 to prevent “phoenix” arrangements.  Under the changes, transactions between GST-registered persons involving land will be zero-rated. See:

The Government’s media statement and Tax integrity fact sheet.

See also:

The tax changes at a glance

More information:
A special report by the Policy Advice Division of Inland Revenue which explains the technical details of the tax package proposals will be published here later today, after Budget day legislation is introduced.

The full set of Budget 2010 documents can be found at: http://www.treasury.govt.nz/budget/2010

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In this issue we highlight the large fall in the unemployment rate from 7.1% to 6%.

We take a look at our new Leading Indicator of Employment tool which predicts when there are likely to be significant changes in the labour market.

We also provide a brief insight into the latest research information including literacy and numeracy in the workforce, and employer-funded education and training.

To find out more – keep reading.

Household Labour Force Survey

Unemployment rate down to 6.0%. The March 2010 quarter fall in the unemployment rate was the largest drop since the HLFS began in 1986, a decline from 7.1% to 6%. This was driven by a fall in the number of unemployed males aged 15-24. Read more about the March 2010 HLFS data.

Leading Indicator of Employment

The Department launched the Leading Indicator of Employment on 12 May. This indicator predicts when there are likely to be significant changes in the labour market.

The Indicator is quarterly and draws on five existing indicators by combining them.

Although the Indicator’s main function is to predict peaks and troughs in employment, it can also forecast employment growth for the subsequent three quarters.

The Indicator is predicting that employment is likely to grow between 0.1% and 0.5% in the next two quarters, and slightly more in the December 2010 quarter. The Leading Indicator of Employment will be issued quarterly, following the release of the Household Labour Force Survey. Read more about the Leading Indicator of Employment.

Regional Labour Market Information Meetings

During June and July, the Department of Labour will be coordinating a series of regional meetings with government organisations, business groups and tertiary education organisations (TEOs) to improve the level of knowledge on sources of labour market information. This will be particularly useful for TEOs in their investment planning for TEC funding as well as general business development purposes.

To find out more about these free meetings email Neil Cooper – Manager of Labour Market Skills: neil.coooper@dol.govt.nz

Jobs Online

Online job advertisements for skilled vacancies rose by 8.6% in the three months to the end of April 2010. Growth increased in the following areas: construction and engineering (up 15.1%), sales, retail, marketing and advertising (up 11.4%), and IT (up 10.8%). Read more about Jobs Online.

Our Latest Research Reports

The ‘Workers with low literacy or numeracy skills: characteristics, jobs, and education and training patterns’ report explores the connection between low literacy and future education or training. It maps low literacy and numeracy skills by industry and occupation. Read more about this report.

Workforce Education and Training

‘Employer-funded education and training — who receives it?’ research report explores the factors that make employer-funded education and training more likely. A survey conducted in 2008 found that 31% of employees had received employer-funded education and training, in the previous 12 months. Skilled workers in the public sector were more likely to have received this training. Read more about this report.

‘Dynamics’ is a quarterly newsletter provided by Work Directions. Work Directions takes the leading role in providing analysis and insights about the New Zealand labour market. This includes coverage of recent trends and research on what the labour market will look like in the future.

If you would like to subscribe to this newsletter click on this link

To provide feedback about this newsletter please email info@dol.govt.nz


The following changes to personal tax come into effect on the first pay, physically paid, after October 1st, 2010

  • For Income up to $14,000 the rate reduces from 12.5% to 10.5%
  • For Income up to $48,000 the rate reduces from 21.0% to 17.5%
  • For Income up to $70,000 the rate reduces from 33% to 30%
  • For Income over $70,000 the rate reduces from 38% to 33%

There is no change to the ACC Levy which remains at 2% (calculated as an addition to the above rates)

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KiwiSaver members who qualify for the first home deposit subsidy will not be taxed on the subsidy, Revenue Minister Peter Dunne has announced.

“Changes made to the tax rules by Order in Council this week allow the deposit subsidy to be treated as a social assistance suspensory loan.

“Provided recipients meet all conditions and live in the home for at least six months, there will be no requirement to repay the loan. Normally the tax rules would treat such ‘forgiven’ debts such as income, which would be taxable.

“Changing the tax rules to treat the subsidy as a social assistance suspensory loan will be good news for the recipients of the subsidy when it becomes available on 1 July,” Mr Dunne said.

KiwiSavers who have contributed to the scheme for a minimum three years and who are looking to buy their first home, but who have difficulty raising the deposit may be eligible for the deposit subsidy.

KiwiSavers who are not first-home owners, but are also having difficulty saving for a deposit on a home may also be eligible for the subsidy.

The subsidy provides for $1000 for each year of contribution, up to a maximum of $5000 and is administered by the Housing New Zealand Corporation.

The rule change making the first home deposit subsidy a social assistance suspensory loan for tax purposes was made by Order in Council on Monday 26 April.

Source: http://www.taxpolicy.ird.govt.nz/news/2010-04-29-no-tax-kiwisaver-first-home-subsidy


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