Final pay in MYOB payroll upon business sale

Experienced Cover User CorrieP
11 Posts
Experienced Cover User
Solved: Go to Solution

Final pay in MYOB payroll upon business sale

Hi, I have sold my business and will terminate all employees upon settlement in order for them to be re-employed by the purchaser. As part of the sale all annual leave entitlements accrued will be transferred to the purchaser instead of being paid out to staff members.

 

How do I process this in MYOB Payroll? if I enter them as final pays then the program will automatically calculate and pay out entitlements and deduct PAYE etc. I need the system to recognise the termination of employment for reporting purposes and calculate entitlements but not to pay them out.

 

Any ideas?

 

Thanks in advance.

4 REPLIES
Ultimate Partner jenniek
2,073 Posts
Ultimate Partner
New Zealand

Re: Final pay in MYOB payroll upon business sale

Hi @CorrieP

Are you in NZ - using NZ MYOB Payroll?

If so, are you transferring the leave balances to the new owner of the business as part of the settlement?

Technically, you should be paying out your staff, terminating them, and then they start fresh with the new employer, however transferring leave seems to be common. The leave balances need to be calculated after the final pay run, and transferred to the new employer as an opening balance of ANHL (annual leave) - this includes any HP (holiday pay) owing as well. These balances are then cleared from your payroll, so there is no leave owing, and a termination date can be put it. The finish date then reports to the IRD on the next IR filing. The new owner then puts in the new start date, which generates a new anniversary date, and the opening balance of leave at a rate of pay (this may be higher than their ordinary rate of pay) The $ value can be calculated to give the total amount of leave in $ being transferred to the new company. The leave in future will still be paid out at an average rate of the previous 12 months - and could well change over time depending on the hours worked by the employee.

Hope this helps.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
Experienced Cover User CorrieP
11 Posts
Experienced Cover User

Re: Final pay in MYOB payroll upon business sale

Hi Jenniek,

 

Yes I am in NZ using NZ payroll.

 

Thats what I thought but if I do that won't it deduct PAYE and kiwisaver etc from the termination balance and report that to IRD? I intended to transfer the gross entitlements to the purchaser.

 

Thanks

Ultimate Partner jenniek
2,073 Posts
Ultimate Partner
New Zealand
Accepted Solution Solved Solution

Re: Final pay in MYOB payroll upon business sale

Hi @CorrieP

No - you won't be paying out any leave, kiwisaver etc, so no PAYE would be deducted. You do the adjustment through the leave details screen, not by actually paying out wages. You would only pay for hours actually worked, then get the leave balances owing after this final run.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
Experienced Cover User CorrieP
11 Posts
Experienced Cover User

Re: Final pay in MYOB payroll upon business sale

That's great; thanks for your help!

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