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Microsoft closes payroll service just before Christmas

Microsoft has announced that it is to turn off its hosted payroll software 10 days before Christmas, leaving hundreds of small businesses just six weeks to migrate their entire payroll system to another provider.

Customers have been left concerned and confused at the short notice given to shut down the payroll and electronic payments services, and some companies told The Daily Telegraph that they were ‘incensed by Microsoft’s attitude.’

Microsoft will no longer sell its Office Accounting service and it has told customers that its product will no longer be updated to take account of changes in legislation, such as changes to the VAT rate which will change in December.

Microsoft told the Telegraph that 100,000 businesses had registered to use its free and paid for accounting packages, and they could continue to do so but the product would not be updated to take account of changes.

From now on businesses will be supported by a partner of Microsoft known as Mamut. The deal with Mamut, according to Microsoft, means they will not be leaving customers ‘in the lurch’ because its partner would be able to provide a ‘seamless transition of service’.
20/11/09