PAYE and payslips NZ: Tax codes, Payday Filing and Wage Records

PAYE and payslips is our New Zealand hub for how wages are taxed at source, how employers file employment information, and what staff can expect to see on a wage record. PAYE means pay as you earn: Inland Revenue (IRD) requires the employer to deduct tax from salary or wages and pay it across by the due date.

This page is for the 2026/27 tax year (1 April 2026 to 31 March 2027). It is for cafe owners hiring their first barista, tradies putting a labourer on the books, and employees who want to read a payslip. It is not a take home pay estimator. Figures are working papers. GSTCalc.nz is not Inland Revenue. Ads may fund this free site. This is not tax advice.

Two clocks: file each payday, pay on IRD’s due date

Inland Revenue’s payday filing page says you must send employment information every time you pay staff, even if you cannot pay the deductions yet. Paying the money is a separate timetable on the paying deductions page. Mixing those two dates is the usual first employer trap.

Task Who it applies to IRD timing
File employment information (electronic) Each payday you pay an employee Within 2 working days of payday
File employment information (paper) Where paper filing is still allowed Within 10 working days of payday, or the 15th / month end paper timetable
Must file electronically after 6 months Annual PAYE and ESCT of $50,000 or more IRD payday filing page
Pay deductions (small to medium) Gross annual PAYE and ESCT less than $500,000 By the 20th of the following month
Pay deductions (large employer) Gross annual PAYE and ESCT more than $500,000 Twice a month: 20th of the same month, or 5th of the next month (16 to 31 December is due 15 January)

Source: Inland Revenue payday filing and paying deductions to Inland Revenue. Connected businesses in a group add PAYE and ESCT together for the $500,000 test. For the dollar split on a wage itself, use the PAYE calculator. This hub stays on codes, filing, and records.

What PAYE is (and what a payslip is not)

On Inland Revenue’s employing staff page, PAYE is the deduction you make from employees earning a wage, salary, or schedular payment, then pay to IRD on their behalf. Business.govt.nz PAYE says the same in small business language: you calculate and deduct each pay, then send the pay details to Inland Revenue.

A payslip is the staff-facing record of that pay. Employment New Zealand’s payslips page is clear: an employer does not have to give a payslip unless the employment agreement says they will. If there is no slip, the employee can still ask to see wage and time records and holiday and leave records.

Payslip trap

No PDF in the inbox does not mean no legal record. Employment NZ says those wage, time, holiday and leave records must still exist, and staff can ask for them. Keep PAYE lines on the record even when you email a slip as well.

Employee on PAYE versus contractor on withholding

Employee (PAYE)

Register as an employer, collect a completed IR330, deduct PAYE (and other required amounts), file employment information each payday, and keep wage records. Holiday and minimum wage rules sit with Employment NZ, not only IRD.

Contractor (schedular)

Inland Revenue’s tax code page says schedular payments use tax code WT and the contractor form is IR330C, not IR330. They invoice. GST and withholding are a different path: contractors vs employees and the withholding tax calculator.

Company cars and other non cash perks are fringe benefit tax, not a PAYE line: FBT calculator. GST on invoices is separate: GST calculator.

Employer setup: register, IR330, then payday

1
Register as an employer as soon as you start employing
IRD’s register as an employer page: IRD number, contact and bank details, BIC code, and the date you start. Paper option is Employer registration IR334 (April 2026).
2
Get a completed IR330 before the first pay
IRD deductions from salary and wages: no completed IR330 means tax code ND, non notified rate of 45% plus ACC earners levy.
3
Deduct, file, then pay
File in myIR, from payroll software, or on paper IR348 where allowed. Use EMP as the account type when you pay. IRD says you cannot use the deducted money for anything else.
4
Keep records for the tax clock and the employment clock
IRD employing staff: full and accurate wage records for 7 years. Employment NZ record keeping: wage, time, holiday and leave records for 6 years even after the person leaves.

If you stop employing for good, Inland Revenue says notify within 30 working days after you stop. If you will not pay wages for a month or more, tell IRD so employment information is not expected. Employer’s guide: IR335.

Tax codes on the IR330

Inland Revenue’s about tax codes page says you need one tax code for your main or highest source of income. Using M on two jobs at the same time is the example IRD gives of a wrong code. Staff complete IR330 (flowchart on pages 2 and 3) and hand it to the employer. What tax code should I use covers student loan (add SL), NZ Super through MSD, casual agricultural (CAE), recognised seasonal (NSW), election day (EDW), and schedular (WT).

Code (IRD) When it is used
Main income One main or highest source. IR330 flowchart. Add SL if there is a student loan.
SB, S, SH, ST, SA Secondary income. IRD table is by estimated annual total income from all sources (SB 0 to $15,600 through SA $180,001 and over).
ND No completed IR330. Employer deducts 45% plus ACC earners levy.
WT Schedular payments. Contractor uses IR330C.

Pull highlight: Inland Revenue collects ACC earners levy with PAYE. For 1 April 2026 to 31 March 2027 the levy is $1.75 per $100 of income up to $156,641 (maximum $2,741.22). That is why the PAYE line on a payslip is not only the income tax rate. Source: IRD ACC earners levy rates.

What should be on wage records and a payslip

Employment NZ payslips lists what a slip may show: name, pay period, pay rate, hours, allowances, deductions, gross and net for the period, and year to date (usually 1 April to 31 March). The employer must still keep daily hours, public holiday hours, and holidays taken in the period, whether or not those lines print on a PDF.

IRD deductions from salary and wages also lists amounts that often sit beside PAYE: child support (IRD tells you the amount; protected net earnings cap child support at 40% of net earnings after tax), student loan, KiwiSaver employee deductions, KiwiSaver employer net contributions, and ESCT. Other deductions still come out in full even if they exceed 40% of net pay. Use of a new tax rate starts on the pay date, including pays that straddle 1 April.

Use case: Wellington cafe Ltd

Situation: first permanent barista, weekly payday. PAYE: register in myIR, collect IR330, deduct on each Tuesday pay, file employment information within 2 working days, pay all July pays by 20 August if under the $500,000 PAYE and ESCT test. Payslip: email a slip if the agreement says so; either way keep hours and how pay was calculated. Action: if the IR330 is missing, use ND until a completed form arrives. Do not spend the PAYE float.

What people get stuck on

PersonalFinanceNZ and r/newzealand threads keep asking why PAYE jumped on a big week, or why a salaried person got a bill after annual leave was paid out. Inland Revenue works PAYE from the tax code and that payday’s pay. A fat week, overtime, or a lump sum can change the deduction for that pay. IRD’s about tax codes page is written to stop a bill at 31 March: one main code, a secondary code on extra income, a new IR330 when the situation changes. Lump sums and out of cycle pays have their own payday filing rules. Do not treat a forum “annualise × 52” shortcut as the legal test.

Geekzone threads mix student loan codes (M SL) with old repayment thresholds. Use Inland Revenue’s current student loan pages, not a 2019 dollar figure from a forum. If payroll used the wrong code, IRD may write to the employer with the code to use. Employment NZ: if records are missing, a Labour Inspector can issue an infringement fee of $1,000 per offence (up to $20,000 in fees in a 3 month period), and the Employment Relations Authority can order penalties of up to $10,000 (individual) or $20,000 (company) per breach. IRD deductions page: not deducting can mean a shortfall penalty of up to 150% of the PAYE, and deliberate failure can mean a fine up to $50,000, imprisonment up to 5 years, or both (IR335 pages 75 and 76).

Frequently asked questions

Does my employer have to give me a payslip in New Zealand?

No, not unless the employment agreement says they will. Employment New Zealand says you can still ask to see or get copies of wage and time records and holiday and leave records, which show pay rate, hours, pay, and leave.

When must an employer file PAYE employment information?

Every payday you pay staff. Inland Revenue says electronic filing is within 2 working days of payday. Paper filing, where allowed, is within 10 working days of payday or the mid month / month end paper timetable. After 6 months, annual PAYE and ESCT of $50,000 or more must be filed electronically.

What if a new staff member has no IR330?

Use tax code ND. Inland Revenue’s deductions from salary and wages page says deduct at the non notified rate of 45% plus ACC earners levy until a completed IR330 is held.

Can I skip filing if I cannot pay the PAYE this month?

No. Inland Revenue’s payday filing page says file on time even if you cannot pay the deductions. Contact IRD about the payment. The deducted money is not the employer’s cashflow.

Last verified 12 September 2026 against Inland Revenue employing staff, payday filing, paying deductions, about tax codes, what tax code should I use, ACC earners levy rates, register as an employer, and deductions from salary and wages; Employment New Zealand payslips and record keeping; Business.govt.nz PAYE. GSTCalc.nz is a free New Zealand publisher of tax calculators and guides. Ads may fund the site. We are not Inland Revenue and this is not tax advice.

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