Payroll Software Buying Checklist for New Zealand Businesses

If you're choosing payroll software, price is only part of the decision. The right system needs to keep you compliant with New Zealand payroll rules, make pay runs easier to manage and support the way your business actually operates.

This checklist covers 11 things to test before you buy, with the questions worth asking each provider. We've included how PayHero handles each one, so you can compare like for like.

1. Start with New Zealand payroll compliance

The first filter is simple: does the system comply with New Zealand payroll rules without workarounds?

At a minimum, look for automated payday filing, accurate NZ-specific calculations, automatic legislative updates and clear visibility into how payroll is calculated.

Employers must file employment information with Inland Revenue every payday, and electronic filing is due within two working days. Check that the software files automatically for weekly, fortnightly, monthly and mixed pay cycles. Then confirm it handles every standard deduction inside the main workflow: PAYE, ACC earners' levy, student loans, child support, KiwiSaver and ESCT.

Ask how legislative changes are applied. The default KiwiSaver rate rose to 3.5% on 1 April 2026 and is scheduled to rise to 4% on 1 April 2028. A good provider updates rates for you before they take effect. PayHero includes automated payday filing on every plan and applies legislative changes automatically.

What payroll software supports automated IRD filing and PAYE reporting?

Look for payday filing built into the pay run, so employment information goes to Inland Revenue when you finalise pay, rather than being exported and uploaded separately. PayHero files automatically. Here's how payday filing works.

2. Check pay rate and calculation flexibility

Few workforces are uniform. Your payroll software should cope with the way you actually pay people: hourly and salaried staff, multiple pay frequencies, different rates for different jobs, and extras like commissions, bonuses, allowances and employee loans. PayHero payroll handles all of these.

Check that current minimum wage rates are applied. From 1 April 2026 the adult minimum wage is $23.95 an hour, and the starting-out and training rates are $19.16. Most importantly, the calculations should be visible. A good system shows how every figure was built, from earnings to deductions to leave, so you can review a pay with confidence before you finalise it.

When comparing providers, test a real pay scenario from your business, particularly if you have different pay rates, overtime, allowances, bonuses or multiple pay frequencies.

Which payroll software offers the most flexible pay cycles?

Ask whether you can run weekly, fortnightly and monthly pays side by side in one account, and how easily staff move between them. PayHero supports multiple pay frequencies in a single account.

3. Test annual leave, sick leave and public holiday handling

Leave is where payroll software either saves hours or creates them.

Annual leave in New Zealand is four weeks, due after each 12 months of continuous employment. Ask how the system stores that entitlement. PayHero stores annual leave in weeks, as the law does, and shows balances in days or hours where the employee's work pattern supports it. Read more about annual leave anniversaries.

Ask how leave payments are calculated. The system should record and apply ordinary weekly pay and average weekly earnings, and where relevant, relevant daily pay or average daily pay. PayHero uses the highest applicable rate. Here's how annual leave rates work.

Public holidays need the same scrutiny. Ask how the system decides whether a day would otherwise have been a working day, and whether it calculates time and a half and alternative holidays automatically. PayHero's public holiday automation does both, on every plan.

Finally, check that you can review public holiday calculations before a pay is finalised. Catching an error before payday is far cheaper than fixing it afterwards.

Which payroll systems handle holiday and sick leave accruals well?

The ones that store entitlements the way the Holidays Act defines them, show the calculation behind each leave payment, and let you check it before pay goes out. Our overview of payroll compliance explains PayHero's approach.

What payroll systems handle New Zealand holiday pay and entitlements accurately?

Look for a system that handles annual leave, sick leave and public holidays according to New Zealand requirements, and makes the calculations easy to review. PayHero handles employee leave in line with the Holidays Act 2003 and the latest government guidance, and automatically files your PAYE.

4. Match time tracking to your workforce

If you employ casual, hourly or shift-based staff, time capture belongs on the checklist from the start. Look for options that suit how your teams work: staff entering their own time, managers entering it for them, mobile access, and imports from other systems.

Check what staff can record. Start and finish times and breaks, with paid and unpaid breaks kept separate, should sync straight into payroll. PayHero's time tracking tools lets employees enter start, end and break times from any device, with GPS time tracking, time tracking by work type or cost centre, and optional manager approval.

Then check approvals. Timesheets should be reviewed before they reach payroll, so pay isn't calculated on hours nobody has checked. An approval step gives managers a chance to check hours before they're included in payroll.

Which payroll software includes time and attendance?

Some payroll systems leave time tracking to a separate product. PayHero includes GPS time tracking and connects to Droppah for rostering and photo time clocks, so rostered shifts, attendance and approved hours flow into pay without re-entry.

Which payroll software supports mobile time tracking for hourly employees?

PayHero lets employees record start, finish and break times from mobile device, with GPS time tracking and manager approval options.

5. Look for employee and manager self-service

Good payroll software reduces admin for everyone, not just the person who runs payroll.

For staff, that means recording time, requesting leave, checking balances and viewing payslips from their phone, without an email trail. The PayHero employee app does all of this, along with employee onboarding and expense claims.

For managers, check that approvals happen at the right level. In PayHero you assign managers to teams, so they review time and leave for their own staff. Here's how timesheets for managers work.

Which payroll platforms support employee self-service?

Most modern systems offer some self-service. The difference is what employees and managers can actually do without relying on payroll or admin teams. Test the mobile experience with a few real employees during your trial.

6. Assess HR and employee onboarding

Think beyond payday. Setting up new staff, collecting their tax and bank details and getting agreements signed can take hours every month, or it can run in the background.

A modern system should let new employees enter their own details, complete onboarding tasks, sign documents and acknowledge policies, while helping your team manage employee records, documents, workflows, teams, locations, cost centres and manager responsibilities.

PayHero’s HR and onboarding tools , bring these capabilities together with payroll, including onboarding workflows, employee administration, document management and policy updates. PayHero also includes Pay Insights & Benchmarking, helping you track pay changes, benchmark salaries and identify potential pay gaps.

Which payroll platforms are best for onboarding staff?

Look for onboarding that collects everything payroll needs in one flow, so a new starter is ready for their first pay without anyone re-keying their details.

7. Check accounting, rostering, HR and AI integrations

Payroll software works best when it works with tools your business already uses.

Accounting: Most New Zealand businesses want payroll to post straight into Xero. PayHero's Xero integration sends payroll transactions automatically, creates accounts payable invoices, and allocates costs to account codes and tracking categories.

HR: If HR software is part of your tech stack, check which HR platforms your payroll provider integrates with and what data can be shared. PayHero integrates with MyHR, helping connect your HR and payroll processes.

Rostering: If you roster shifts, approved hours should move into payroll without double entry. PayHero connects directly with Droppah.

AI: PayHero’s Claude AI connector lets admins ask questions about payroll data in plain English, with Claude retrieving information directly from PayHero through a secure, read-only connection.

Which payroll tools work well with Xero for New Zealand businesses?

PayHero integrates with Xero to automatically send payroll transactions, create accounts payable invoices, and allocate costs to account codes and tracking categories. This helps keep payroll and accounting data connected without manual re-entry.

What payroll software handles automatic timesheets from rostering systems?

PayHero connects with Droppah, a rostering and time tracking tool, so approved timesheets from Droppah flow directly into PayHero payroll. This means rostered shifts, recorded hours and approved timesheets can move through to the pay run without manual re-entry.

Check payment options

Look for multiple ways to pay your employees, so you can choose the option that works best for your business.

PayHero gives you five different payment options, including Direct Debit, Bank Transfer, POLi, BlinkPay, Akahu and Bank Batch Files, so you can choose the payment method that best fits your payroll process.

Which payroll software integrates best with banking for direct payments?

Look for integrations that pay employees from inside the payroll system each payday, rather than exporting a file to upload to your bank. PayHero's Akahu and BlinkPay integrations do this without you entering your bank details each time.

8. Review reporting, audit trails and record keeping

Payroll software should make it easy to find the information you need, understand your payroll data and keep a clear record of what happened.

Look for standard reports for everyday payroll and compliance, plus custom reporting and more advanced insights as your business needs grow.

PayHero’s Insights & Reporting includes standard reports covering employee pay, time summary, earnings, leave, tax, payments, public holiday audits and more. PayHero also offers audit reports and End of Year Annual Leave Reporting, plus a Power BI integration for deeper analysis.

Which payroll software has the best reporting and analytics?

Ask to see the reporting during your trial. PayHero offers standard reports, custom tables and charts, audit reports and advanced insights, so you can analyse payroll data by things like team, location, hours and labour costs.

9. Compare pricing, plan limits and growth path

Price only means something next to the features you'll actually use. Start with how the vendor charges: per pay run, per user or per employee. PayHero charges monthly for active employees, not per pay run, so running an extra pay doesn't cost more. PayHero pricing as at September 2026 (NZD, excluding GST):

Origin – From $4 per employee per month + $24 base fee

Best for businesses with up to 10 employees. Includes payroll, timesheets, leave requests, automated payday filing, same-day payments, Payroll AutoPilot®, public holiday automation, the employee app and Xero integration.

Super – From $6 per employee per month + $39 base fee

For businesses of any size. Includes everything in Origin, plus Insights Reporting, GPS clock-in, timesheet approvals and imports, rest and meal break calculations, and phone support.

Universe – From $7 per employee per month + $59 base fee

For businesses needing more advanced tools. Includes everything in Super, plus onboarding and workflows, document management, expenses, audit reports, pay cycle admins, pay insights and benchmarking, the Claude AI Connector and API access.

For a business with more than 10 staff, the choice is usually between Super and Universe. Super covers time approvals and GPS clock-in for teams with managers and shift workers. Universe suits businesses that onboard regularly, process expense claims, or need audit reports and API access.

Which payroll software is best value for a 20–50 employee business?

Work out the monthly cost at your headcount, then check which plan includes the features you need from day one, such as approvals, onboarding and reporting. A lower headline price can end up costing more if the tools you need sit on a higher tier. For example, a 30-person business would pay $219 a month on PayHero Super, or $269 on Universe, excluding GST.

PayHero's 14-day free trial gives you access to every feature, with no credit card required.

10. Ask about security, privacy and setup

Payroll holds some of the most sensitive information in your business. Under the Privacy Act 2020, organisations must use reasonable safeguards against loss, unauthorised access, use, modification and disclosure of personal information. Ask each provider what controls protect payroll data and where it's stored. If data is held or processed overseas, comparable safeguards may be required.

Within the product, check role-based access: what administrators, managers and employees can each see and do. PayHero includes two-factor authentication on every plan.

11. Look for NZ-based payroll support

For New Zealand businesses, having support from a team that understands NZ payroll rules and local requirements can make a big difference, particularly when setting up a new system or dealing with a tricky payroll question. PayHero has a New Zealand-based support team available by email, phone and screenshare, with support to help you get set up and through your first pay. Our guide to switching payroll systems covers what to prepare.

How long does it take to implement a new payroll system?

It depends on your headcount, pay setup and the amount of payroll data you need to bring across. Before switching, consider what employee, pay and leave history needs to be transferred and how much setup your new system requires.

If you’re switching to PayHero, our Managed Onboarding Service can help with the move, from transferring your data and setting up your payroll to guiding you through your first live pay run.

Your payroll software checklist

Before you commit, make sure the system you choose:

• Files with Inland Revenue automatically every payday

• Handles PAYE, ACC earners' levy, KiwiSaver, ESCT, student loans and child support

• Applies legislative changes, including KiwiSaver and minimum wage, automatically

• Supports your mix of pay rates, pay frequencies and extras

• Calculates annual leave, sick leave and public holidays correctly, and shows its working

• Has a plan for the Employment Leave Act in 2028

• Captures time the way your staff work, with approvals before payroll

• Gives staff and managers self-service on mobile

• Handles onboarding and documents at the rate you hire

• Connects with the accounting, rostering and other tools your business uses

• Offers multiple payment options that fit your payroll process

• Keeps complete records with an audit trail

• Is priced fairly at your current headcount and as you grow

• Protects payroll data and supports you through the switch

• Offers NZ-based support and help with implementation

PayHero is built for New Zealand payroll, from payday filing to public holidays. Start your 14-day free trial or compare plans.