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In-country Expertise

Expert New Zealand Payroll Solutions, Tailored to Your Business

Our efficient processes and local expertise ensure accuracy and compliance with New Zealand laws, so you can confidently focus on growing your business.

Experience the Benefits of Hassle-Free Australian Payroll

Understanding Payroll in New Zealand—The Essentials

Get familiar with key payroll requirements every business in New Zealand needs to know.

Tax Obligations (PAYE and KiwiSaver)

Employers in New Zealand are responsible for deducting PAYE (Pay As You Earn) tax from employees’ wages and remitting it to the Inland Revenue Department (IRD). Additionally, KiwiSaver contributions—both employee and employer portions—must be managed accurately. Ensuring compliance with these tax obligations is crucial to avoid penalties.

Pay Day Filings

New Zealand employers are required to submit payroll details, including employee earnings, taxes, and KiwiSaver contributions, to Inland Revenue (IRD) every payday. This process ensures that tax obligations are met promptly, and that employees’ financial records are up to date. Timely submissions keep employers compliant, enhancing transparency with IRD and simplifying end-of-year filing.

Leave Entitlements Management

Employers must accurately calculate and track various leave entitlements, including annual leave, sick leave, parental leave, and public holidays. New Zealand’s Holidays Act mandates specific accrual and usage policies, making it essential for businesses to manage these correctly to avoid legal disputes.

New Zealand Tax Year and IRD Review

The New Zealand tax year runs from 1 April to 31 March. At the close of the year, Inland Revenue (IRD) reviews each individual’s earnings, deductions, and tax payments to ensure accurate taxation. Based on this review, IRD may issue a refund, request additional payment, or confirm that the correct amount has been paid. This process eases year-end financial planning and helps individuals stay compliant with New Zealand’s tax laws.

Why Payroll is a Challenge for Businesses in New Zealand

Discover the payroll hurdles that can slow your business down in New Zealand.

Complex Compliance Requirements

Managing payroll in New Zealand requires compliance with PAYE (Pay As You Earn), KiwiSaver contributions, and ACC levies. Missteps in these areas can lead to costly penalties and audits.

Frequent Regulatory Changes

Payroll in New Zealand regulations, such as changes in KiwiSaver rates or minimum wage adjustments, evolve frequently. Staying current is essential to ensure payroll accuracy and compliance.

Frequent Regulatory Changes

New Zealand’s payroll regulations, such as changes in KiwiSaver rates or minimum wage adjustments, evolve frequently. Staying current is essential to ensure payroll accuracy and compliance.

Administrative Burden

Managing varying pay cycles, leave entitlements, and timesheet integration can consume valuable time and resources, diverting focus from core business activities.

Frequent Regulatory Changes

New Zealand’s payroll regulations, such as changes in KiwiSaver rates or minimum wage adjustments, evolve frequently. Staying current is essential to ensure payroll accuracy and compliance.

Efficient, Reliable and Compliant Payroll Processing

From Pay Day Filing to KiwiSaver contributions and tax compliance, our payroll NZ experts for small businesses have got you covered.

Tax & Compliance Solutions

PAYE Tax Expertise

We manage PAYE tax deductions and payments to the Inland Revenue Department (IRD), ensuring timeliness and accuracy.

KiwiSaver Made Easy

Our team handles KiwiSaver contributions, following New Zealand’s regulations, ensuring smooth compliance with the 3% default rate.

Accurate Payroll Tax Calculations

With precision, we calculate payroll taxes based on employee wages, helping you fulfill your obligations to the IRD.

ACC Levy Compliance

We ensure your business meets Accident Compensation Corporation (ACC) requirements, safeguarding your employees’ entitlements.

Timely Payroll Processing

Flexible Pay Cycles

Choose the pay frequency that best aligns with your business operations – weekly, fortnightly, or monthly processing.

Pay Day Filing & Year-End Reporting

Our specialists handle all Pay Day submissions and tax filings, tailored to your pay cycle, ensuring full compliance with year-end regulatory standards.

Timesheet Integration

Integrate your timesheet systems with our payroll process for precise wage calculations, ensuring accuracy and efficiency.

Comprehensive Leave Management

We manage and track all leave types, including annual, sick, and parental leave, in accordance with New Zealand’s employment laws.

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Reduce your payroll & compliance worries

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Frequently Asked Questions

Have a question? Find the answers to your most frequently asked questions here. If you can’t find what you’re looking for, please don’t hesitate to contact our customer support team.

What is the PAYE system in New Zealand?

“The PAYE system in New Zealand requires employers to deduct tax, KiwiSaver, and loan payments from wages. It follows progressive tax rates, and employers must remit PAYE to IRD monthly for compliance with payroll in New Zealand.“

What is the IRD in New Zealand?

“The IRD oversees tax collection, including payroll NZ, PAYE, GST, and income tax. It ensures businesses comply with regulations, manage tax returns, and handle KiwiSaver and student loans under payroll systems NZ.“

Can you work in NZ without an IRD?

“Yes, you can work in New Zealand without an IRD number, but you’ll face higher tax rates (up to 45%) and payment delays. To avoid issues, apply online through IRD with your passport, visa, and proof of address under payroll NZ rules.”

Who needs an IRD number NZ?

“An IRD number is essential for employees, contractors, and business owners under payroll systems NZ. It ensures accurate tax deductions and prevents high non-declared tax rates for those earning income in New Zealand.”

How is NZ PAYE calculated?

“Payroll in New Zealand follows the PAYE system, deducting tax based on progressive rates, KiwiSaver (3%-10%), student loans, and ACC levies. Employers use IRD tax tables for accurate calculations.”

What is payroll cycle in New Zealand?

“The payroll cycle in New Zealand determines how often employees are paid—weekly, bi-weekly, or monthly. It includes wages, PAYE, KiwiSaver, and deductions. Compliance with NZ laws, like the Holidays Act, is key for smooth payroll management services and timely payments.”

How is Procloz different from other payroll solutions?

“Procloz excels in payroll management services with automated compliance, multi-country processing, and real-time reporting. It ensures accuracy, reduces manual work, and integrates with HR systems. AI-driven insights help optimize workforce costs while ensuring strict regulatory compliance.”

What is KiwiSaver and how does it work?

“KiwiSaver is a voluntary retirement savings scheme under payroll NZ. Employees contribute at least 3%, often matched by employers, with government support for eligible members. Funds grow in chosen schemes and can be withdrawn at retirement (65+) or under financial hardship.”

What happens to KiwiSaver contributions if an employee has multiple jobs?

“If an employee has multiple jobs, KiwiSaver contributions are deducted from each paycheck under payroll systems NZ. Different rates (3%-10%) can be chosen per job, with all contributions pooling into one account. Employees should inform employers to ensure proper deductions and avoid opt-out issues.”

Can employees access KiwiSaver if they permanently leave New Zealand?

“Yes, employees leaving New Zealand permanently can withdraw their KiwiSaver funds after one year abroad. Government contributions and earnings on them are excluded. Consult your payroll NZ provider for guidance before applying.”

What are the working conditions and wages in New Zealand?

“Payroll in New Zealand includes a 40-hour workweek, NZD 23.15/hour minimum wage (2024), and paid leave. Employees get sick leave, parental leave, and rest breaks. Some industries offer collective agreements. Employers must follow the Fair Pay and Holidays Act.”

What info do i need for payroll in New zealand?

To manage payroll in New Zealand, employers need IRD numbers, tax codes, KiwiSaver details, wage agreements, and work hours. Deductions include PAYE tax, ACC levies, and KiwiSaver contributions, ensuring compliance with Employment NZ and payroll systems NZ regulations.

What are the pros and cons of payroll outsourcing?

“Outsourcing payroll management services ensures compliance, reduces errors, saves time, and enhances security. Downsides include loss of control, hidden costs, and third-party reliance. A trusted payroll services provider helps minimize risks.”