Best Payroll Software for New Zealand Businesses
Find the perfect payroll solution for your NZ business. Compare top providers, understand compliance requirements, and choose the right system for your team size and industry.
Quick Provider Comparison
Compare key features and pricing at a glance
| Provider | Best For | Pricing | Rating | Compliance |
|---|---|---|---|---|
| SmartPayroll 24/7 NZ support | Growing NZ businesses (10-500 employees) | From $25/month + $6/employee | ★ 4.6 | Excellent |
| MYOB Payroll Business hours support | MYOB AccountRight users (5-200 employees) | From $30/month + $4/employee | ★ 4.3 | Very Good |
| Xero Payroll Email and phone support | Xero users (1-100 employees) | From $15/month + $5/employee | ★ 4.2 | Good |
| PaySauce Email and chat support | Modern businesses wanting flexible pay options (5-250 employees) | From $20/month + $8/employee | ★ 4.4 | Very Good |
| PayGlobal Dedicated account management | Medium to large enterprises (100+ employees) | From $8-15/employee/month | ★ 4.1 | Excellent |
Detailed Payroll Provider Reviews
SmartPayroll
Leading New Zealand payroll software with comprehensive compliance features and excellent local support
Key Features
- NZ tax calculations
- KiwiSaver automation
- Holiday Act compliance
- ACC levy calculations
- Employee self-service
- Multi-location payroll
Pros & Cons
Pros
- + Strong NZ compliance
- + Excellent support
- + User-friendly interface
Cons
- - Can be expensive for very small teams
- - Limited customisation options
Specialties
Key Strengths
- • Holiday Act expertise
- • Multi-award compliance
- • Roster integration
Integrations
Xero, MYOB, QuickBooks, BankLink
MYOB Payroll
Part of the MYOB ecosystem, offering integrated payroll with strong accounting software connections
Key Features
- Seamless MYOB integration
- Automated PAYE calculations
- KiwiSaver management
- Employee portal
- Leave tracking
- Payslip generation
Pros & Cons
Pros
- + Perfect MYOB integration
- + Streamlined accounting
- + Good value for MYOB users
Cons
- - Limited outside MYOB ecosystem
- - Basic HR features
- - Less flexible than standalone solutions
Specialties
Key Strengths
- • MYOB ecosystem integration
- • Accounting workflow
- • Financial reporting
Integrations
MYOB AccountRight, MYOB Advanced, BankLink
Xero Payroll
Cloud-based payroll integrated with Xero accounting, ideal for businesses already using Xero
Key Features
- Native Xero integration
- Real-time sync
- Leave management
- Automated tax filing
- Employee self-service
- Timesheet integration
Pros & Cons
Pros
- + Seamless Xero integration
- + Affordable pricing
- + Easy to use
Cons
- - Limited advanced features
- - Basic reporting
- - Xero dependency
Specialties
Key Strengths
- • Xero ecosystem
- • Small business focus
- • Simple setup
Integrations
Xero, Deputy, TSheets, BambooHR
PaySauce
Modern NZ payroll platform with innovative features like instant pay and comprehensive compliance automation
Key Features
- Instant pay option
- Automated compliance
- Mobile timesheet app
- Leave management
- PAYE calculations
- KiwiSaver automation
Pros & Cons
Pros
- + Innovative instant pay
- + Modern user experience
- + Good mobile app
Cons
- - Newer player in market
- - Premium pricing for advanced features
- - Limited enterprise features
Specialties
Key Strengths
- • Instant pay feature
- • Modern interface
- • Mobile-first design
Integrations
Xero, MYOB, QuickBooks, various time tracking apps
PayGlobal
Comprehensive HCM platform with robust payroll capabilities, ideal for medium to large enterprises
Key Features
- Full HCM suite
- Advanced payroll processing
- Multi-entity support
- Comprehensive reporting
- Employee self-service
- Time and attendance
Pros & Cons
Pros
- + Comprehensive HCM features
- + Strong enterprise capabilities
- + Excellent reporting
Cons
- - Complex setup
- - Higher cost
- - Overkill for small businesses
Specialties
Key Strengths
- • Enterprise payroll
- • Multi-location support
- • Advanced reporting
- • HR integration
Integrations
Major ERP systems, accounting software, time tracking
Employment Hero
All-in-one HR and payroll platform with strong employee engagement features and compliance automation
Key Features
- Integrated HR and payroll
- Employee engagement tools
- Performance management
- Learning management
- Automated compliance
- Employee benefits
Pros & Cons
Pros
- + Comprehensive HR features
- + Good value
- + Strong employee portal
Cons
- - Can be overwhelming for payroll-only needs
- - Setup complexity
- - Australian-focused features
Specialties
Key Strengths
- • HR and payroll integration
- • Employee engagement
- • Benefits administration
Integrations
Xero, MYOB, QuickBooks, various HR tools
iPayroll
Established NZ payroll bureau with both software and full-service payroll processing options
Key Features
- Full-service bureau option
- Cloud payroll software
- Holiday pay calculations
- Roster management
- Employee portal
- Direct bank feeds
Pros & Cons
Pros
- + Bureau service option
- + Strong NZ expertise
- + Handles complex payrolls
Cons
- - Higher cost for software-only
- - Interface less modern
- - Bureau dependency
Specialties
Key Strengths
- • Payroll bureau services
- • Complex award interpretation
- • Large payroll processing
Integrations
Major accounting packages, time tracking systems
Payroll Solutions by Business Size
Small Business (1-20 employees)
Key Needs
- • Simple payroll processing
- • Basic compliance automation
- • Affordable pricing
- • Easy setup
Recommended Providers
Budget Range
Essential Features
- ✓ PAYE automation
- ✓ KiwiSaver management
- ✓ Basic leave tracking
- ✓ Payslip generation
Key Considerations
- • Choose based on existing accounting software
- • Prioritise ease of use
- • Consider growth potential
Medium Business (21-100 employees)
Key Needs
- • Advanced compliance features
- • Employee self-service
- • Integration capabilities
- • Reporting tools
Recommended Providers
Budget Range
Essential Features
- ✓ Multi-location support
- ✓ Advanced reporting
- ✓ Employee portal
- ✓ Time tracking integration
Key Considerations
- • Evaluate HR integration needs
- • Consider multi-award complexity
- • Plan for growth
Large Enterprise (100+ employees)
Key Needs
- • Enterprise-grade security
- • Multi-entity support
- • Advanced analytics
- • Dedicated support
Recommended Providers
Budget Range
Essential Features
- ✓ Multi-entity processing
- ✓ Advanced compliance
- ✓ Custom reporting
- ✓ API integrations
Key Considerations
- • Implementation timeline
- • Data migration complexity
- • Ongoing support requirements
Types of Payroll Services
Cloud Payroll Software
Self-managed payroll software accessed via web browser or mobile app
Key Benefits
- Lower cost
- Full control
- Real-time access
- Integration flexibility
Considerations
- Requires internal expertise
- Responsible for compliance
- Need backup procedures
Full-Service Payroll Bureau
Complete payroll outsourcing with expert processing and compliance management
Key Benefits
- Expert compliance
- Reduced workload
- Error protection
- Professional support
Considerations
- Higher cost
- Less control
- Data dependency
- Service level agreements
HR Integration Platforms
Comprehensive platforms combining payroll with HR management features
Key Benefits
- Single platform
- Data consistency
- Employee experience
- Comprehensive analytics
Considerations
- Platform dependency
- Implementation complexity
- Feature overlap
- Change management
Time & Attendance Integration
Payroll solutions with integrated time tracking and roster management
Key Benefits
- Automated timesheets
- Accurate pay calculations
- Labour cost control
- Compliance tracking
Considerations
- Employee acceptance
- Privacy concerns
- Hardware requirements
- Training needs
NZ Payroll Compliance Requirements
Important: Compliance is Critical
New Zealand payroll compliance is complex and penalties are severe. Ensure your chosen solution handles all requirements automatically or engage expert support.
PAYE (Pay As You Earn)
Income tax and ACC earner levies deducted from employee wages
Key Obligations
- Calculate correct tax rates
- File employer monthly schedules
- Pay deductions to IRD
- Issue payment summaries
Penalties for Non-Compliance
Software Automation
KiwiSaver
Compulsory retirement savings scheme requiring employer contributions
Key Obligations
- Enroll eligible employees
- Deduct employee contributions
- Pay employer contributions (3%)
- File monthly returns
Penalties for Non-Compliance
Software Automation
ACC Levies
Accident Compensation Corporation levies based on payroll and business risk
Key Obligations
- Calculate correct levy rates
- Pay employer and earner levies
- Submit annual returns
- Maintain injury registers
Penalties for Non-Compliance
Software Automation
Holiday Act Compliance
Complex legislation governing annual holidays, sick leave, and other entitlements
Key Obligations
- Calculate annual holiday pay
- Track leave entitlements
- Handle public holidays
- Manage sick leave
Penalties for Non-Compliance
Software Automation
Payroll System Implementation Guide
Pre-Implementation Checklist
Audit Current Payroll
Review current processes, identify pain points, and document requirements
Define Business Requirements
Determine must-have features, integration needs, and compliance requirements
Gather Employee Data
Collect all employee information, pay rates, and historical data for migration
Evaluate Providers
Request demos, compare features, and check references from similar businesses
Implementation Timeline
Week 1-2: Setup & Configuration
System setup, company settings, pay schedules, and basic configuration
Week 2-3: Data Migration
Import employee data, historical records, and configure individual settings
Week 3-4: Testing & Training
Run parallel payrolls, test calculations, and train key users
Week 4+: Go Live
Process first live payroll with close monitoring and support
Common Implementation Mistakes to Avoid
Payroll System Cost Analysis
Total Cost of Ownership
Software Costs
- • Monthly/annual subscription fees
- • Per-employee charges
- • Setup and implementation fees
- • Additional module costs
Implementation Costs
- • Data migration services
- • Training and onboarding
- • System integration
- • Customisation requirements
Ongoing Costs
- • Support and maintenance
- • Regular updates and upgrades
- • Additional user licenses
- • Backup and security services
ROI Considerations
Cost Savings
- • Reduced payroll processing time
- • Lower error rates and corrections
- • Decreased compliance penalties
- • Automated reporting and filing
Productivity Gains
- • Employee self-service capabilities
- • Streamlined approval processes
- • Real-time reporting and analytics
- • Integration with other systems
Risk Mitigation
- • Automated compliance management
- • Improved data security
- • Better audit trails
- • Professional support and advice
Payroll Cost Calculator
Estimate your monthly payroll costs based on business size:
(1-20 employees)
(21-100 employees)
(100+ employees)
Frequently Asked Questions
What payroll compliance requirements must NZ businesses meet?
NZ businesses must comply with PAYE tax obligations, KiwiSaver contributions (3% employer minimum), ACC levies, Holiday Act requirements, and various employment law obligations. All payroll systems should automate these calculations and filings.
How much does payroll software cost in New Zealand?
Costs vary significantly: basic solutions start from $15-30/month plus $4-8 per employee, while comprehensive platforms range from $6-15 per employee per month. Bureau services typically cost $5-20 per employee per pay period.
Should I choose cloud-based or on-premise payroll software?
Cloud-based solutions are recommended for most NZ businesses due to automatic updates, better security, remote access, and lower IT maintenance. They also ensure compliance updates are applied automatically.
How long does it take to implement a new payroll system?
Implementation typically takes 2-6 weeks depending on business complexity. Simple setups can be completed in 2 weeks, while complex multi-location or multi-award businesses may require 6+ weeks for full implementation.
What's the difference between payroll software and payroll bureau services?
Software gives you control and lower ongoing costs but requires internal expertise. Bureau services handle everything for you with expert compliance management but cost more and reduce your control over the process.
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