New Zealand has a population of 4.8 million people, with thriving industries including agriculture, fishing, and mining. There are many options for business entities that can be setup in New Zealand, and the corporate tax rate is 28%.

Labor and Payroll Considerations in New Zealand:

  • Work hours must be written in the employment agreement
  • New Zealand uses a Pay-As-You-Earn (PAYE) system
  • The tax year in New Zealand is April 1 – March 31
  • Minimum wage is NZD 20 per hour
  • Income tax, goods and services tax, and Accident Compensation Corporation contributions are withheld from employee pay
  • Employers must also contribute to the Accident Compensation Corporation
  • There is no social security tax, but there is a voluntary system for contributing to retirement called the Kiwisaver
  • New employees must be registered using an online portal established for employers
  • Foreign workers need a temporary work permit
  • Employers must prove that a local could not fill the position

New Zealand’s Ministry of Health workplace response to COVID-19 provides that if an employer requires an employee not to come to a workplace, the employee should be paid. Paid sick leave (and anticipated sick leave) may be used if the person is sick or needs to care for a sick dependent. If paid sick leave is not available, paid special leave should be considered. Other forms of paid leave can be used by agreement between the employer and the employee.

Funding options in New Zealand are flexible. If the company has an in-country bank account, employees can be paid directly, and if the company does not have an in-country bank account you can send funds to a treasury management partner for employee payments.

If you are just getting started in New Zealand, or need to improve payroll operations, we can help. Our cloud-based payroll platform gives you real-time access to your payroll across all countries and currencies. You have a dedicated US service team and in-country experts to help when questions come up. Talk to us today about simplifying your payroll in New Zealand.