Best Payroll Software NZ 2026: IRD Payday Filing Compliant Options

Since April 2019, every NZ employer has been legally required to file employment information with Inland Revenue every single payday — not at the end of the month, not quarterly. Every pay run.

If your payroll software doesn't handle this automatically, you're either doing it manually (and risking errors) or you're non-compliant.

NZ Payroll Compliance Checklist

Before comparing products, here's the non-negotiable checklist for any NZ payroll software:

1. Employment Hero — Best All-in-One NZ Payroll + HR

Pricing: From ~$8/employee/month (HR platform)
IRD payday filing: ✅ Fully automated | ACC levy: ✅ | Holidays Act: ✅ Advanced engine | KiwiSaver: ✅

Employment Hero has become the leading all-in-one HR and payroll platform for NZ SMBs. Unlike payroll-only tools, it also handles HR processes — employee records, leave requests, onboarding, contracts.

Why NZ businesses choose Employment Hero:

• Holidays Act compliance built into the calculation engine — reduces underpayment risk
• IRD payday filing automatic with every pay run
• Employee self-service app for leave requests and payslips
• Integrates with Xero for accounting
• Growing NZ customer base with local support resources

Best for: NZ businesses with 5–100+ employees wanting payroll + HR in one platform.

2. Xero Payroll — Best for Xero Users

Pricing: Included in Xero Standard ($65/month) and Premium ($85/month)
IRD payday filing: ✅ Fully automatic | ACC levy: ✅ | Holidays Act: ✅ | Xero integration: ✅ Native

If your business already uses Xero for accounting, Xero Payroll is the path of least resistance. Every pay run automatically files with IRD, posts to your general ledger, and reconciles against your bank feed. No export/import step — everything in one system.

Best for: Businesses already on Xero Standard or Premium with up to ~50 employees.

3. MYOB Payroll — Best for Complex Pay Structures

Pricing: MYOB Business Pro includes payroll

MYOB's payroll module is particularly strong for businesses with complex pay structures — construction with multiple rates, hospitality with split shifts, or businesses with union agreements.

Best for: Construction, manufacturing, businesses with complex award rates.

Payroll Software Comparison (NZ)

For HR compliance specifically: Best HR Software NZ — Holidays Act Compliance

The IRD Payday Filing Requirement Explained

Before 2019: NZ employers filed employment information monthly to IRD.

From April 2019: All employers must file every payday — within 2 working days.

Penalty for non-compliance: IRD can charge $250 per late filing, plus interest on unpaid PAYE.

What "automatic payday filing" means: Your payroll software generates the EI (Employment Information) file and submits it to IRD electronically after every pay run. You don't touch it.

The ACC Levy — The Most Overlooked NZ Payroll Issue

ACC levies are uniquely NZ and frequently misunderstood. There are two components:

• Work levy: Paid by employer — rate varies by industry (from ~$0.80/$100 for low-risk office work to $5.50+/$100 for high-risk industries like forestry)
• Earners' levy: Deducted from employee wages (currently ~$1.60 per $100 of earnings)

Good payroll software (Employment Hero, Xero Payroll, MYOB) handles this automatically. Spreadsheets don't.

Holidays Act — Why Your Software Matters More Than You Think

NZ's Holidays Act 2003 requires annual leave to be paid at the higher of:

• Ordinary weekly pay (OWP) at the time of leave, OR
• Average weekly earnings (AWE) over the last 12 months

Major NZ employers including Bunnings NZ and Woolworths NZ have paid back tens of millions in Holidays Act underpayments. Your payroll software's calculation engine is your protection against getting this wrong.

Related: Best Accounting Software NZ