MYOB AO Classic release notes—23.0.1 (New Zealand)

All 2020 returns have been updated to cater for loss carry-back.

If you're claiming a loss carry-back from 2021, in the 2020 return, enter the amount being claimed in the Losses brought forward section:

• We've added a new Loss carry-back from 2021 field to the Loss brought forward section.
• The amount of losses claimed can be loss carry-back and/or loss brought forward.
• The loss carry-back isn't included as a separate amount on the IRD Summary or in the E-Filed return. Only the loss claimed is sent to IR.
• The Tax Summary will display the loss carry-back separately in the new Details of losses brought forward / carried forward section.
• If integrated with Tax Manager, this amount will populate the Loss carry-back from 2021 field in the losses section of the 2020 year. The loss carry-back amount isn't updated to Tax Management.

If you claimed a loss carry-back from 2020 in the 2019 return, it needs to be offset in the 2020 return.

• If integrated with Tax Manager, enter the loss-carry back from 2020 in the losses section of the 2019 year. The value entered will populate the new field in Other Income. The field is not editable when integrated to Tax Manager.
• If integrated with Tax Management, enter the loss-carry back from 2020 directly in the new Other Income field.
• the IRD Summary and the E-Filed return will include the loss carry-back to 2019 as part of the Other Income amount.
• the Tax Summary will print the loss-carry back to 2019 separately.

The IR7 return has the following differences to the other return types:

• Both the Loss carry-back to 2019, and the Loss carry-back from 2021 fields are in Other Income.
• When distributing to the partners or owners, the loss carry-back from 2021 is part of KP26I Other passive income. The loss carry-back from 2021, should be shown in the same field in the receiving return. No change has been made to the distribution, so if KP26I has any loss carry-back from 2021, it will post to Other Income in the receiving return. In the receiving return you need to remove the amount from Other Income and enter it in the Loss carry-back from 2021 field. Warnings have been added in the IR7 and receiving return to remind you to do this.

An election must be made in myIR for loss carry-back before making the claim in the return, including for the partners or owners in an IR7.

Refer to Inland Revenue for more information on claiming the loss carry-back.

The 2020 return has fields to offset any loss carry-back to 2019, but the 2019 return hasn't been updated for the loss carry-back. If you need to file or amend a 2019 return with a loss carry-back from 2020, you need to do it via myIR.

We’ve made changes to the 2020 Tax Summary when a return has losses, to make it easier to understand:

• If a loss is claimed in the current year, “Less Prior and subsequent year losses claimed (see below)" will print the amount claimed before the current year taxable income or loss.
• A new detailed loss brought forward/carried forward section will now display after the current year taxable income or loss. The first part will show the details of any loss to carry forward, and will be the sum of the following, if applicable:
  • losses brought forward
  • losses carried back from 2021
  • current year loss
  • losses claimed this year
  • excess imputation credits (if a non-individual).
• Any other amounts to be carried forward will print after the losses to be carried forward total, if applicable:
  • ring fenced residential rental losses
  • non-refundable R&D credits.

The Tax Summary for an IR4 has been updated to reflect when AIM tax credits are transferred to the shareholders. A row has been added after provisional tax paid to show the transfer.

The provisional tax paid value in the IR4 Tax Calculation tab will show the net value. The details can be seen in the Net 2020 Provisional tax paid window.

If integrated with Tax Manager, an AIM shareholders offset transaction will be created for the transferred amount.

We've included the use of money interest (UOMI) rates that came into effect on 08/05/2020:

• UOMI payable 7.00%
• UOMI receivable 0.00%.

We’ve fixed the following:

• When an IR3 Individual return was eligible for Independent Earner Tax Credit (IETC), the Residual Income Tax (RIT) displayed incorrectly on 2020 tax return reports and E-Filed the incorrect RIT. This fix was previously made available via AO Classic 23.0.0 hotfix 52691112.
• Special characters or a different font printed for the Residential ring fenced rental income section of the Detailed schedule when it was printed to PDF.
• When RIT was above $255,000 the reports and E-Filed return were incorrect.
• In the IR4 Tax Summary, the Refundable R&D tax credits description printed when there were no credits. Now the description doesn't print.
• The IR6 Summary of tax payable tab displayed the incorrect amounts at KP28B and KP28C. This was a display issue only. The reports and E-Filed amounts were correct.
• Some returns with residential rental income got an error in the Audit report when losses were claimed.
• In IR4, you couldn’t claim a loss brought forward when a subvention payment had been received.

Annual Leave amounts are now displayed in weeks at Employee > Leave Detail.

When an employee's Normal days / week or Normal hours / day fields are edited, a new warning messages appears, asking if the employee's Current Annual Leave due should be recalculated.

New options on the Payroll Options window determine whether or not to show a message.

You can choose to display the warning message and ask if the Annual Leave due should be recalculated; recalculate the Current Annual Leave due automatically without displaying a warning; or display the warning only in cases where the change would reduce the employee's balance.

The Convert Holiday Pay to Annual Leave for employees started since last anniversary payroll option has been removed in this release.

Employees with negative annual leave balances

When an employee has a negative Current Annual Leave due amount (e.g. due to them having been paid annual leave in advance), if any changes are made to an employee's Normal days / week or Normal hours / day values, the Current Annual Leave due cannot be updated.

To account for this, any variation caused by the change to Normal days / week or Normal hours / day values is displayed separately in the [Plus] Adjustments fields, while Current Annual Leave due field remains the same.

These amounts will appear on the Leave Due window in pays, and in reports relating to the employee's annual leave.

The adjustment amounts are reset to zero when the employee's anniversary date rolls over.

New options are available for pay codes with the gross earnings type.

By default, these options are selected for all pay items, but you can clear either or both of them in cases where a pay code should be excluded from gross earnings.

In some cases, a departing employee may be entitled to holiday pay for public holidays that fall after their employment ends. See Payment for leave and holidays in final pay on the Employment New Zealand website for information on this scenario and how to determine if it applies to a departing employee.

The Final Pay Details window now displays a message warning about this scenario and includes a link to the information on the Employment New Zealand website.

• The payslip now shows weeks for annual leave due and accrued.

• A new Display Weeks option is available on the Holiday Accruals report, so that balances can be reported in weeks as well as hours.

• Weekly amounts are now displayed on the Employee Holidays report