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Payroll Guide — PAYE, KiwiSaver, Employment Information (EI) in NZ

the payroll management in New Zealand. The guide covers the PAYE deductions, the KiwiSaver contributions (the employee and the employer), the ESCT, the ACC earner levy, the Employment Information (EI) reporting, and the payroll software requirements.

Payroll Deductions

The employer must deduct the following from the employee's salary and wages each pay period: (a) the PAYE (the income tax based on the tax code), (b) the ACC earner levy (1.53% of the gross earnings), (c) the KiwiSaver employee contribution (3%, 4%, 6%, 8%, or 10%), (d) the student loan deduction (12% of the income above the $22,828 threshold if applicable), and (e) the child support deduction if ordered by the IRD. The employer must also calculate and pay the employer KiwiSaver contribution (3% minimum) and deduct the ESCT from the employer contributions.

Employment Information (EI)

The Employment Information (EI) is the electronic payroll reporting system administered by the IRD. The employer must file the EI each pay day (or by the 20th of the following month for the small employers) showing: the gross earnings, the PAYE deducted, the KiwiSaver deductions, the ESCT, the ACC levy, the student loan deductions, and the child support deductions. The EI is filed through the myIR account or the payroll software integrated with the IRD. The failure to file the EI on time may result in the late filing penalties.