Best payroll software in New Zealand: Top solutions for employers

Managing payroll is a core function of any business with employees. It can also be one of the most complex and time-consuming administrative tasks. For New Zealand employers, getting it right involves navigating specific tax obligations, employment laws and employee entitlements. This is why effective payroll software is so important.

A good system automates complex calculations, helps you manage your legal obligations and frees up valuable time. This guide breaks down why investing in the right payroll software matters for your business and reviews the best payroll software available in the New Zealand market.

What is Payroll Software?

Payroll software is a tool that automates the entire process of paying your employees. It’s designed for business owners and managers who want to move beyond manual calculations and endless paperwork. It takes a complex, high-stakes task and makes it simple, fast, and accurate.

The core function of payroll software is to solve the major pain points of managing pay. This includes calculating wages, deducting the correct tax, managing superannuation contributions and generating payslips.

The best payroll software tools are built to handle the specifics of Australian regulations, including Single Touch Payroll (STP) reporting to the ATO and superannuation compliance. How payroll software helps is by transforming a time-consuming, error-prone process into a streamlined, automated function, giving you confidence and control.

Why payroll software matters for NZ businesses

Using dedicated payroll software is a fundamental tool for modern business management in New Zealand. Manually calculating wages, PAYE tax, KiwiSaver and leave entitlements is not only inefficient but also full of risk. A single error can create significant problems. Payroll software is designed to manage these complexities and support accuracy and consistency.

The primary benefit of software is that it can help you with managing IRD requirements. Software is often built to handle payday filing, where you must send employment information to the IRD every time you pay your staff. This includes details on earnings, PAYE deductions, KiwiSaver contributions and student loan repayments. The right software automates this filing process, submitting the required data directly to the IRD on time for every pay run.

Automation is another major advantage. The software handles recurring tasks that would otherwise consume many hours of administrative work. By automating these processes, you reduce the administrative burden on yourself or your team. This allows you to focus on other critical areas of the business, like growth, strategy and team development.

Finally, good payroll software can improve employee satisfaction. Many modern systems also include employee self-service portals. These portals allow team members to view their payslips, check their leave balances and update their personal details online. This transparency and accessibility give employees more control over their information and reduce the number of payroll-related queries you have to handle.

Best New Zealand Payroll Software platforms compared

We analysed the top options on the market to find the best payroll software for New Zealand small businesses. Our review focused on ease of use, compliance features, integration capabilities and overall value.

Feature/Provider	Employment Hero	Xero	PaySauce	ADP	iPayroll	FlexiTime
Free trial	✓	✓	✘	✘	✘	✓
Core HR Software	✓	✘	✘	✓	✘	✘
Core Payroll Software	✓	✓	✓	✓	✓	✓
Applicant Tracking	✓	✘	✘	✓	✘	✘
Integrated HR & Payroll	✓	✘	✘	✓	✘	✘
Time & Attendance	✓	✘	✓	✓	✓	✓
Employee Self Service	✓	✓	✓	✓	✓	✓
All-in-one Platform	✓	✘	✘	✓	✘	✘

Employment Hero

Founded in 2014, Employment Hero is a cloud-based, all-in-one HR and payroll software that services over 350,000 businesses globally. Its Employment Operating System is designed to help businesses effectively navigate the complexities of payroll management and empowers organisations to focus on what matters most, their people.

Pros of Employment Hero for Payroll

• All-in-one solution: As an integrated HR and payroll platform, it simplifies everything from automated pay runs and timesheets to managing pay rates and bank holidays.
• Compliance made easier: Take the pain out of pay runs with automated IRD reporting. Key information is sent to Inland Revenue each cycle to help you meet reporting obligations.
• Automated deductions: An online portal makes it easy for employees to set their KiwiSaver deductions, with the information flowing automatically to the payroll system for correct calculations.
• Streamlined leave: The software simplifies leave management with instant reports on balances and clear holiday pay calculations, including the 52-week average report.

Cons of Employment Hero for Payroll

• Comprehensive features: For a business with just one or two employees and very simple needs, the breadth of features might feel extensive at first.

Xero

Xero Payroll is an integrated payroll solution offered by Xero, a popular accounting software provider.

• Description: Xero Payroll automates pay runs, tax calculations and deductions. It includes a self-service portal for employees to access payslips and apply for leave and it integrates seamlessly with Xero’s accounting software.
• Pros: Its strength lies in simplicity and accessibility, making it ideal for SMEs with straightforward payroll needs who already use Xero for accounting. The user-friendly interface and automated processes are a major plus.
• Cons: While great for basic payroll, it may lack the advanced HR and rostering features found in all-in-one platforms. It’s best suited for businesses without complex workforce management needs.

PaySauce

PaySauce is a payroll and employee management software that offers automated payroll processing, compliance management and integrated features to streamline HR operations for SMEs in New Zealand.

• Description: The platform automates wage calculations, taxes and deductions. It also includes tools for managing employee details, leave, timesheets and it integrates with accounting software.
• Pros: PaySauce is a scalable solution that can adapt as a business grows. The employee self-service portal helps reduce admin by allowing staff to access their own pay info and submit leave requests.
• Cons: It is a specialist payroll tool, so businesses will need separate systems for more comprehensive HR functions like performance management or recruitment.

ADP

ADP (Automatic Data Processing) is a global provider of human resources management software and services, specialising in payroll processing for businesses of various sizes.

• Description: ADP offers cloud-based platforms to manage payroll, employee benefits, time tracking and HR tasks. Its solutions can automate payroll calculations, tax deductions and direct deposits.
• Pros: ADP Workforce Now is beneficial for medium to large enterprises needing comprehensive HR and payroll tools. Their platforms are adaptable and can support businesses as they expand.
• Cons: For smaller businesses, ADP’s extensive features can be more complex and costly than necessary. It is often better suited to larger organisations with more intricate requirements.

iPayroll

iPayroll is a cloud-based payroll software service used in New Zealand, offering streamlined payroll processing, employee management and compliance functionalities.

• Description: The software automates calculations for wages, taxes and deductions. It includes features for tracking employee details, managing leave and submitting timesheets electronically.
• Pros: iPayroll is user-friendly and well-suited for SMEs in New Zealand. The employee self-service portal and customisable settings allow it to align with specific business policies.
• Cons: It focuses primarily on payroll. Businesses looking for an integrated solution that includes broader HR features like recruitment, onboarding and performance management will need to look elsewhere.

FlexiTime

FlexiTime is an online payroll and time management software, providing features such as automated payroll processing, time tracking, leave management and compliance assistance.

• Description: FlexiTime automates payroll calculations, tax deductions and pay runs. It has a strong focus on time tracking, including clock-ins, breaks and overtime.
• Pros: It is particularly well-suited for businesses with a mobile or remote workforce. Its mobile accessibility and employee self-service features empower staff to manage their time and access payroll information from any device.
• Cons: While strong on time management and payroll, it’s not an all-in-one HR platform. You would need other tools to manage the full employee lifecycle.

How to choose the right payroll software

When choosing payroll software for your SME, focus on features that deliver the most value. You need a solution that simplifies administration without adding unnecessary complexity.

Here are some must-have features for small businesses in New Zealand:

• KiwiSaver and superannuation management: The system must accurately calculate and manage employer and employee KiwiSaver contributions.
• Leave tracking and management: A robust leave function is crucial. The software needs to track and calculate entitlements for annual holidays, sick leave and bereavement leave according to New Zealand legislation.
• Employee self-service portals: Giving employees access to their own information is a major time-saver, allowing them to view payslips, check leave balances and submit requests online.
• Automatic tax filing: Efficient payroll software should automate tax filing. Look for systems that handle calculations accurately and facilitate direct submission of reports to the IRD.
• Ease of implementation: Opt for providers that offer a smooth onboarding process with adequate training and support. User-friendly interfaces and straightforward setup procedures are key.

Final thoughts

Automate as much of your payroll as you like by harnessing the power of a fully integrated online payroll and HR platform. Run payroll reports in a few clicks and never lose a timesheet or leave request again.

Our award-winning payroll management software is recognised globally for providing an outstanding product and customer experience. Why not join the league of successful businesses who’ve transformed their payroll operations? Learn more about our all-in-one HR and payroll platform today.