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Find out how Remote can guide you through the complexities of managing cross-border hiring, payroll, taxes, and compliance.

Payroll services in New Zealand

New Zealand has a strong economy with key industries in agriculture, technology, and finance. With specific labor laws and tax regulations, employers in New Zealand must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in New Zealand

Employers in New Zealand must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

  • Minimum wage : New Zealand’s minimum wage is NZD 22.70 per hour.
  • Payroll frequency: Salaries are generally paid weekly, biweekly, or monthly.
  • Standard working hours: The normal workweek in New Zealand is 40 hours, typically spread over five days.
  • Overtime: Employees are entitled to additional pay for overtime work, typically based on employment contracts and collective agreements.

Taxation and social security contributions

  • Personal income tax: New Zealand has a progressive income tax system with rates ranging from 10.5% to 39% depending on income levels.
  • Employer contributions:
    • KiwiSaver: 3% of the gross salary (if opted-in).
    • Accident Compensation Corporation (ACC) levy: Varies depending on the industry and risk level.
  • Employee contributions:
    • KiwiSaver: 3%, 4%, 6%, 8%, or 10% of the gross salary (if opted-in).
  • Corporate tax: The corporate income tax rate in New Zealand is 28%.
  • Tax reporting: Employers must file payroll taxes and contributions with the Inland Revenue Department (IRD) regularly.

Payroll compliance in New Zealand

  • Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
  • Payroll deductions: Employers must ensure accurate deductions for income tax, KiwiSaver, and ACC levies.
  • Employers must stay updated on changes to New Zealand’s labor laws and tax regulations to avoid penalties.

Run payroll in New Zealand with Remote

Managing payroll in New Zealand requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.