Payroll - what you need to know in 2026

Running payroll correctly is one of the most important responsibilities for employers. Whether you have one employee or a growing team, understanding payroll rules helps you stay compliant and avoid costly mistakes.

Many small business owners across Auckland ask the same questions about payroll, KiwiSaver, employee leave, and reporting requirements. This guide answers the most common payroll questions and explains what employers need to know from 1 April 2026.

If you're looking for help managing your payroll, contact Mobile Bookkeeping — we can get everything set up and running smoothly in no time.

In New Zealand the tax year begins on 1 April, and this is when many payroll rates and thresholds can change. Employers should check their payroll settings at the start of each new tax year to make sure staff are being paid correctly.

Common updates that may occur include:

• Minimum wage increases

• PAYE tax adjustments

• Student loan repayment thresholds

• KiwiSaver contribution updates

• ACC earners’ levy changes

If you use payroll software these updates are often applied automatically, but it’s still important to check everything before running your first pay in April.

Many businesses choose to use our services at Mobile Bookkeeping to ensure these changes are implemented correctly.

Can I pay only some staff a bonus?

Yes. Employers can choose to give bonuses to selected employees rather than the entire team.

Bonuses are commonly paid for:

• Strong performance

• Achieving sales targets

• End-of-year recognition

• Long service

Bonuses must still be processed through payroll and taxed correctly. They are treated as taxable income and must be reported to the Inland Revenue Department (IRD).

Is KiwiSaver compulsory?

KiwiSaver is not compulsory for employees, but it does create obligations for employers.

Key things employers need to know:

• Many employees are automatically enrolled in KiwiSaver when they start a new job.

• Employees can opt out within a set timeframe.

• If an employee stays enrolled, the employer must currently contribute at least 3% of their gross pay.

Employers must deduct employee contributions and send them to the Inland Revenue Department through payroll reporting.

Do employers need to send payroll data to IRD?

Yes. New Zealand uses payday filing, which means payroll information must be submitted every time employees are paid.

Payroll data sent to the Inland Revenue Department includes:

• Gross wages

• PAYE tax

• KiwiSaver deductions

• Student loan repayments

• Employer KiwiSaver contributions

Most payroll software sends this automatically, but employers must still ensure the information is correct.

Can anyone run payroll?

Technically yes, but payroll requires knowledge of both tax rules and employment law.

Payroll responsibilities include:

• Correct PAYE deductions

• KiwiSaver contributions

• Holiday pay calculations

• Sick leave tracking

• IRD reporting

Because payroll mistakes can lead to penalties or unhappy employees, many businesses choose to outsource payroll to professional bookkeepers such as Mobile Bookkeeping, or have us train their team to manage payroll correctly.

What is a statutory holiday?

A statutory holiday is a public holiday employees are legally entitled to under New Zealand employment law.

Examples include:

• New Year’s Day

• Waitangi Day

• ANZAC Day

• Good Friday

• Christmas Day

• Matariki

• Kings Birthday

• Labour Day

If an employee normally works that day and takes it off, they must receive their relevant daily pay.

If they work on the public holiday, they must receive:

• Time and a half pay, and if it was a normal working day

• An alternative day off (day in lieu)

When do employees get sick leave?

Employees become entitled to 10 days of paid sick leave per year after:

• 6 months of continuous employment, or

• Meeting minimum weekly work thresholds.

Sick leave can be used when:

• The employee is sick or injured

• They need to care for a sick partner

• They need to care for a dependent child

Unused sick leave can accumulate up to 20 days.

Why many Auckland businesses outsource payroll

Payroll can quickly become time-consuming as your business grows. Many small business owners across Auckland choose to work with us to simplify the process.

Benefits of outsourcing payroll include:

• Accurate payroll calculations

• Correct KiwiSaver and PAYE deductions

• On-time IRD reporting

• Proper tracking of employee leave

• More time to focus on running your business

Mobile Bookkeeping can also come to your workplace, making it easier to manage payroll and business finances without leaving your office.

Need help with payroll?

If you run a small business in Auckland, professional payroll support can ensure your employees are paid correctly and your reporting obligations are met.

Mobile bookkeeping and payroll services can help with:

• Payroll setup

• Payday filing

• KiwiSaver management

• Employee leave tracking

• Ongoing payroll processing

Getting payroll right protects both your business and your employees.

Drop Debbie an email debbie@mobile-bookkeeping.co.nz or call us 027 498 9551