Other payroll tax

New Zealand does not operate a dedicated payroll tax at the national level. Instead, employers and employees contribute to the Pay As You Earn (PAYE) system, which is the primary mechanism for collecting income tax on wages and salaries. PAYE is withheld directly from employee pay and remitted to the Inland Revenue Department (IRD). Additionally, employers must contribute to the KiwiSaver scheme, a mandatory workplace savings program, and pay the employer superannuation contribution of 3 percent of eligible employee earnings.

The KiwiSaver scheme is governed by the KiwiSaver Act 2006 and administered by the IRD. Employers are required to enroll eligible employees and contribute 3 percent of gross earnings into their designated KiwiSaver fund, unless the employee opts out. This is separate from income tax withholding and represents a direct employer payroll obligation.

New Zealand also imposes the Accident Compensation Levy, which is a work-related injury insurance contribution. Employers pay this levy based on their payroll and industry classification, with rates set annually by the Accident Compensation Corporation (ACC). The levy funds the ACC's no-fault injury compensation scheme.

Some regional councils and local authorities may impose targeted levies on employers within their jurisdictions, though these are not universal across the country. Employers must register with the IRD for PAYE purposes and maintain accurate payroll records. Payroll teams should ensure timely PAYE remittance, correct KiwiSaver contributions, and ACC levy payments. The IRD provides detailed guidance on employer obligations and contribution rates, which are updated annually.