Hiring Your First Employee in New Zealand – What You Need to Know
Taking on your first employee is an exciting milestone for any New Zealand business. However, it also brings significant legal responsibilities and obligations that you must understand and meet. This comprehensive guide walks you through everything you need to know to get it right from day one. Step 1: Register as an Employer with Inland […]
Tax Codes in New Zealand: A Guide for Employers and Employees
Last Updated: December 2025 Getting tax codes wrong is one of the most common payroll mistakes in New Zealand—and it’s expensive. Wrong tax codes lead to unexpected tax bills, unhappy employees, and IRD penalties. Whether you’re an employer processing payroll or an employee wondering why your pay seems short, understanding NZ tax codes is essential. […]
When and How to Release Employee Wage and Leave Records: A Guide for New Zealand Employers
Understanding who can access employee wage and leave records—and in what format—is a critical compliance matter for all New Zealand employers. Getting it wrong can result in privacy breaches, penalties, or strained relationships with regulatory bodies. Here’s what you need to know. The Legal Framework New Zealand employers must maintain accurate wage and leave records […]
IRD PAPER FORMS – IR 345 and IR 348
The IRD are very good at wasting not only paper but postage as well. Ezypay as your payroll provider electronically file your IR 345 and IR 348 on your behalf either bi monthly or monthly ( unless you have specifically requested as not to ) If you have been receiving paper copies of these forms […]
IRD Mileage rate for motor vehicles increased from 2012 Tax Year
This will be of interst to those of you who pay a mileage allowance – I have copied this straight from the IRD newsletter. The motor vehicle mileage rate has been reviewed to reflect the average cost of running a motor vehicle, including the average fuel prices. The mileage rate for the 2012 income […]
TAX BILLS AND REFUNDS
At the end of the tax year we are frequently asked why an employee has a tax bill ( never a refund !!) to pay. Naturally they find this very frustrating and would rather pay more tax each pay period than be landed with a tax bill. Under New Zealand’s current tax system we operate on […]
IRD Mileage Allowance Increased
The IRD mileage allowance used by employers to compensate employees for using their private car on company business has increased from 70 cents per kilometre to 74 cents per kilometre for the 2011 tax year.
Redundancy Tax Credits
The entitlement to a redundancy tax credit was due to expire on March 31, 2011 but it has been extended to September 30. 2011. If an employee is made redundant they are entitled to receive the redundancy tax credit of 6% for the first $60,000. ( i.e a maximum of $3,600.) To claim the rebate […]
Earthquake Tax Changes
After the September and March earthquakes some companies paid their employees an ex gratia payment to help them over this unsettling period. Originally, the IRD deemed the payments were taxable but tax changes have been introduced to respectively fix this. This applies to any payments made within 8 weeks of either earthquakes ( some conditions do apply) […]
Kiwis will work 123 days to pay their taxes.
Did you know the average Kiwi has to work 123 days to pay their taxes. Tuesday the 3rd of May is when we start working for ourselves and not for the Government. We compare poorly against Australia who have a Tax Freedom Day of April 19th but are leaps ahead of Norway with their Tax […]