Still using MYOB Exo Payroll? Why NZ small businesses should consider moving to a cloud payroll system

05 Feb 2026

 

If your business still uses MYOB Exo Payroll or another desktop-based payroll system, it may be time to reassess your payroll setup. While MYOB Exo Payroll has served New Zealand businesses for many years, the shift toward modern, cloud-based payroll solutions has been accelerating for many years – and most organisations have begun the transition.

Desktop payroll systems like Exo Payroll require manual updates, local data storage, IT dependencies, and limited automation. In contrast, cloud-based payroll platforms now provide secure, real-time, fully integrated solutions that simplify compliance and reduce administrative workload.

This guide explains why many NZ businesses are moving away from older desktop payroll systems, the risks of staying on legacy technology, and how to plan a smooth transition to a cloud payroll in NZ, such as iPayroll.

Why NZ businesses are moving away from desktop payroll

Even before MYOB formally announced the retirement of Exo Payroll in New Zealand, several factors were already driving employers to upgrade.

1. Increasing compliance requirements

New Zealand payroll legislation has evolved rapidly, including:

  • Payday filing (mandatory)
  • KiwiSaver employer contributions & ESCT
  • Minimum wage increases
  • Leave calculations under the Holidays Act

A cloud payroll software updates automatically. Desktop systems rely on manual updates that many businesses overlook.

2. Growing data security risks

Desktop payroll relies on:

  • Local servers
  • In-house backups
  • Higher vulnerability to cyberattacks or hardware failure

Cloud payroll platforms store data securely in the cloud with encrypted backups and robust authentication.

3. Manual processes slow teams down

Older desktop payroll systems often require:

  • Manual entry
  • Export/import processes
  • Multiple spreadsheets
  • Physical backups

Cloud platforms streamline workflows with automation and integration. iPayroll also provides KiwiSaver superannuation payments, online timesheets and leave management, reducing admin and eliminating manual errors.

4. Limited integration with modern business tools

Cloud payroll systems can be seamlessly integrated with:

  • Accounting systems
  • HR tools
  • Time & attendance platforms

Legacy systems struggle to integrate, leading to duplicate data entry and inefficiencies. In comparison to a cloud-based payroll software like iPayroll that integrates seamlessly with Xero and other accounting and HR tools, eliminating double data entry and ensuring payroll and accounts remain perfectly aligned – providing a single source of the truth.

What are the risks of staying on legacy payroll software?

If your NZ business continues using outdated payroll technology, you may face:

1. Compliance issues

Manual calculations can lead to:

  • Incorrect ESCT
  • Wrong KiwiSaver contributions
  • Holidays Act inconsistencies

This can trigger IR corrections and employer penalties.

2. Security vulnerabilities

Local servers and desktop programs are more exposed to:

  • Malware
  • Hardware failure
  • Lost backups
  • Unauthorised access

3. Limited support over time

As legacy products age, updates become less frequent, compliance gaps can emerge, and support options narrow

4. Compatibility issues

Old payroll software may not work well with:

  • New versions of Windows
  • Modern devices
  • Cloud-based systems

When should NZ businesses consider moving on?

Small businesses should consider upgrading when:

  • Payroll accuracy is becoming harder to maintain
  • Staff spend too much time fixing or checking payroll data
  • You're managing payroll remotely or hybrid
  • You want automatic updates for compliance
  • Your system can’t integrate with other tools

Many NZ businesses choose to upgrade before issues arise, not after.

How to transition smoothly to a cloud payroll solution

Here’s a pathway for NZ businesses planning to move away from older desktop solutions:

1. Assess your current payroll

Document:

  • Employee details
  • Leave balances
  • KiwiSaver settings
  • Pay rules
  • Allowances and deductions

This helps define what your new payroll system must support.

2. Choose a modern NZ-based payroll provider

Look for a platform that offers:

  • Built-in Payday Filing
  • Automated KiwiSaver & ESCT
  • Cloud-based access from any where, any time
  • Secure data storage
  • Comprehensive reporting
  • Integration with accounting, hr, time and attendance tools
  • Reliable local support
  • Employee self-service

iPayroll meets all these needs and is trusted by thousands of businesses across New Zealand.

3. Plan your data migration carefully

Accurate migration ensures:

  • Correct leave balances
  • Smooth transition to new pay runs
  • Accurate YTD figures
  • Correct tax and KiwiSaver details

The iPayroll Support Team provides migration support as part of setup and implementation, helping ensure a clean, reliable payroll configuration and a smooth first pay run.

<h3>4. Train your team</h3>

Onboarding training will ensure payroll administrators and managers understand:

  • How to run pay cycles
  • How leave is calculated
  • How employees access payslips and records

5. Set a realistic go-live date

Plan your “switch” during a quiet pay period, allowing time for testing and validation.

Why a cloud payroll is the future for NZ Employers

Cloud-based payroll platforms like iPayroll offer:

  • Automatic legislative updates
  • Seamless integration with IR
  • Secure cloud hosting
  • Employee kiosks and self-service
  • Scalable modules as your business grows
  • Reduced admin and fewer errors

Switching early ensures your business stays compliant and ahead of technology and compliance changes.

Ready to modernise your payroll?

If your business is still using MYOB Exo Payroll or another desktop payroll system, now is the perfect time to upgrade. iPayroll is New Zealand’s trusted cloud-based payroll provider – secure, compliant, and designed specifically for NZ businesses. With iPayroll, you get:

  • Full payday filing integration with IR
  • Automated KiwiSaver & ESCT calculations
  • Secure cloud access from anywhere, any time
  • Employee self-service
  • Reliable local NZ support
  • Seamless payroll processing every time

Make the transition now and future-proof your payroll with confidence. Book a free demo today.

 

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