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Payroll in New Zealand

Payroll in New Zealand

Payroll in NZ represents the list of employees who are entitled to receive payment and the value of this pay. Additionally, the employer needs to contribute a percentage of the employee’s gross wages to the KiwiSaver scheme, when the employee has entered into this superannuation scheme.

Both the employer and the employee contribute to the voluntary, work-based savings scheme, however, their rates vary. In addition, the government also contributed a member tax credit.

Understanding these requirements is important for all investors interested in New Zealand company formation. If you are ready to start a company, our team can provide you with essential information about hiring staff and the duties and responsibilities that arise, in addition to services related to payroll in New Zealand.

Working with a third party that offers services for employers is oftentimes the preferred method for companies, especially when they have a larger number of employees. Our team is also able to assist businesses with payroll services in NZ.

New Zealand payroll

As part of their mandatory contributions in New Zealand, employers are subject to social security contributions as part of the KiwiSaver superannuation scheme which the employee opts into and also contributes a percentage of his/her salary.

Understanding the requirements of payroll in NZ is essential before hiring employees. These refer to the minimum wage applicable in the country, as well as the proper management of the due payments both to the employee (the wages/salaries) and to the aforementioned superannuation scheme.

The reason why many companies will choose to outsource payroll in New Zealand is so that business owners can have the peace of mind that the salary payments are performed accordingly and that any social security contributions are paid in due time.

As part of a package containing payroll services in NZ, businesses receive the following:

  • Salary payments: calculating the monthly salary according to the job position and making sure that each employee is paid on time and accordingly (including with the needed bonuses, as may be the case);
  • Payroll processing: making the annual leave entitlement calculations and social security contribution calculations;
  • Filing and payment: making the needed IRD filing and tax payments; this is a key feature concerning payroll NZ;
  • Reports and payslips: complete payroll reporting and issuing payslips (in electronic or physical format).

Our team can not only help investors open a company in New Zealand. We also assist with post-registration issues, such as payroll, corporate income tax matters, and many other problems. For questions about our services, please do not hesitate to reach out to one of our specialists.

Wages in New Zealand

Employers in New Zealand are all asked to pay the minimum wage. This applies both to full-time and part-time adult employees, as well as to trainees, new workers, as well as workers with disabilities.

Understanding and observing these requirements is a key condition and one with which our team which specializes in payroll in New Zealand can help company owners.

The following wage rates were in force at the time this article was written:

  • the minimum wage rose to $22.70 per hour starting on 1 April 2023;
  • this is an increase of $1.50 per hour;
  • training and starting-out wages increase to $18.16 per hour; these remain at their set value of 80% of the adult minimum wage;
  • approximately 222,900 New Zealand workers will benefit from this increase;
  • the Government will review the minimum wage later in 2023.

Business owners can reach out to our experts in New Zealand company formation at any time for more information on the different types of minimum wage.

Contact us if you need more details about payroll in NZ, in addition to the information provided in this article.