Linked accounts are the default accounts used for various functions in MYOB. They work behind the scenes to make sure that the right accounts are used consistently and correctly. This saves you from needing to choose an account every time you use a function.
If you've upgraded from MYOB Essentials to MYOB Business, it's a good idea to understand how linked accounts work.
Linked accounts are similar to the system accounts used in MYOB Essentials – but there are the key things relating to payroll linked accounts you should note:
the bank account for paying wages is now the linked accounts for cash and cheque payments
there is a new linked account for electronic payments
the PAYE withholding and and KiwiSaver employer deduction linked accounts have been combined
you can can change some linked accounts.
You can view your payroll linked accounts by going to the Accounting menu > Manage linked accounts > Payroll tab:
How we've mapped payroll system accounts to linked accounts
During the upgrade, we've mapped MYOB Essentials payroll system accounts to the relevant feature-level linked accounts in MYOB Business. We've also updated the linked account's balance with the system account's balance.
Here's how we've mapped system accounts to linked accounts:
Bank account for cash payments/cheque payments
Both of these linked accounts have been mapped to the Bank account for paying wages that was chosen in Payroll settings in MYOB Essentials:
Bank account for electronic payments
This account wasn't available in MYOB Essentials. It's a clearing account that’s used to keep track of electronic payments that haven’t been processed yet for your employees. Amounts will be posted to this account when you record a pay run for those employees who have been set up for electronic payments. The payments are cleared from this account and withdrawn from your bank account when you make electronic payments. Learn more about electronic payments.
Default wages expense account
Default wages expense account: This is the account that was used for earnings pay items (wages, salary and allowances) in MYOB Essentials. You can specify a different account when setting up your earnings.
Default KiwiSaver expense account
Default KiwiSaver expense account: This is the default account that was used for employer KiwiSaver contributions and ECST tax (expenses).
Default employer deductions payable account
Default employer deductions payable account: This is the default account used for employee, employer and ECST for Kiwisaver to be paid to IR. This includes child support and PAYE.
After upgrading,
The PAYE withholding account from Essentials is now the Default employer deductions payable account. The initial balance is unchanged and will only include PAYE values.
When recording pays in MYOB Business, this account will now include all employer deductions payable to IR (KiwiSaver, ESCT, PAYE and child support).
If you want, you can change the name of this linked account to reflect both the employer deductions and PAYE withholdings payable being posted to it.
Default other deductions payable account
Default other deductions payable account: This is the account that was used for any other deductions in MYOB Essentials.
You can change linked accounts
In many cases, you can choose a new linked account, edit a linked account's details, or choose not to select a linked account for certain functions. In MYOB Essentials, all system accounts were locked down and couldn't be edited or unlinked.
For detailed descriptions of the linked accounts available in MYOB Business, and how to change them, see Managing linked accounts.