Updating minimum wage rates part-way through a pay period - NZ

This page is about updating your employees pay rates to the new NZ minimum wage part-way through a pay period. To do this you need to create two separate pay runs in Advanced Workforce Management, which are imported into MYOB Advanced Payroll and then processed together as a single pay.

This process is for employers who:

have employees affected by the 2023 NZ minimum wage change, and
are increasing their employees' pay rates part-way through a pay period (e.g. on 1 April for a fortnightly pay period from 27 March to 9 April), and
use MYOB Advanced Workforce Management integrated with MYOB Advanced Payroll.

If you are increasing your employees' pay rates for an entire pay period, you can update their rate, finalise timesheets and process the pay run as normal, but if you have a lot of employees to change check out step 3 to see how to do it in bulk.

Bulk pay rate features coming soon Step 3 includes instruction on filtering employees based on pay rate and bulk editing pay rates. These features are currently scheduled to be released on 23 March, in time for you to use them to update minimum wage rates for all your employees. We'll update this page if there are any delays.

1. Create and cost timesheets in MYOB Advanced as usual

Changing pay rates part-way through a pay period has no effect on employees – they can continue to clock in and out of their shifts as normal, before and after 1 April. Leave them at their old rates until you've imported your first timesheet batch into MYOB Advanced Workforce Management.

Don't move any timesheets to the commited status until you're ready to process the pay runs, especially those dated 1 April or later.

2. Process and import a pay run for timesheets up to 31 March

When all the timesheets for the period up to 31 March have been entered and checked, you're ready to process and import your first batch of timesheets.

Commit the timesheets dated up to 31 March to payroll. Don't commit any from 1 April or later yet.
Create a pay run in MYOB Advanced Workforce Management for those timesheets.
Finalise the pay run to import it into MYOB Advanced Payroll.
In MYOB Advanced Payroll, go to the Timesheet Batches form to pull in this pay run as a timesheet batch, but don't create a pay run in MYOB Advanced Payroll yet.
For more information on importing, see Importing timesheets into MYOB Advanced Payroll.

Once the timesheet batch is created in MYOB Advanced Payroll you're ready to update your employees' pay rates.

3. Bulk update minimum wage rates

To make updating the minimum wage easier, we've added the ability to filter employees by pay rate and then update their pay rate in bulk.

You'll need to update wages separately for employees on starting-out and training minimum wages.

Go to Management > Employees.
Click Filters (
) to open the Filter Employees panel.
To filter for employees who are below the new minimum wages, enter the range into the Pay Rate From and Pay Rate To boxes:
- Adult minimum wage: $21.20 to $22.69
- Training and starting-out minimum wages: $16.96 to $18.16
Click Apply Filters.
The list of employees will show only those in the specified range.
Click the hidden checkbox to the left of the First Name heading to to select all the filtered employees. Hover over it to reveal it.
Open the Bulk actions menu (
) and click Modify.
The Modify employees panel opens.
Enter a Pay rate (without a dollar sign) that meets the new minimum wage legislation:
- Adult minimum wage: $22.70
- Training and starting-out minimum wages: $18.17
To update all filtered employees' pay rates, click Bulk update, then Confirm bulk update once you've checked the change is correct.

You can only bulk edit up to 100 employees at a time. If you have more than 100 employees affected, update them in separate batches.

Once you've updated the minimum wage rates, you're ready to process a pay run for the remaining timesheets.

4. Recost, process and import a pay run for timesheets from 1 April

Now that your employees' pay rates have been updated, you can recost and finalise the remaining timesheets for the period, and create another timesheet batch in MYOB Advanced Payroll.

Go to Manage Time and recost all timesheets that are affected by the change in rate. For more information, see How do I cost or re-cost timesheets?
Commit all the remaining timesheets to payroll, including all the timesheets dated from 1 April.
Create a second pay run in MYOB Advanced Workforce Management.
Finalise the pay run to import it into MYOB Advanced Payroll.
In MYOB Advanced Payroll, go to the Timesheet Batches form to pull in this pay run as a second timesheet batch.
For more information on importing, see Importing timesheets into MYOB Advanced Payroll.

Once you have two timesheet batches imported into MYOB Advanced Payroll, one covering the period before the pay rate change, and one covering the period after, you're ready to complete the pay run in MYOB Advanced Payroll.

5. Complete the pay run in MYOB Advanced Payroll

Once both timesheet batches have been created in MYOB Advanced Payroll, you're ready to complete the pay run.

Create a new pay run in MYOB Advanced Payroll.
Import time into the pay run.
It includes the timesheet batches from both of the MYOB Advanced Workforce Management pay runs.
Finish processing the pay run normal.

While there are two pay runs in MYOB Advanced Workforce Management, they are combined into a single pay run in MYOB Advanced Payroll with just one payment and payslip as normal.

Payslip rate The payslips generated by this process show a single line for all hours at an average rate, not a separate line for each rate. Consider including a message on the payslip to explain this to affected employees.