Best Payroll Software in New Zealand 2025 

Payroll processing is one of the toughest parts that every HR and finance department has to take care of. It is not just about crunching numbers but staying compliant with IRD, calculating KiwiSaver Contributions, and keeping team members happy with accurate pay. Whether it is a startup in Wellington or a budding enterprise in Auckland, the best payroll software can save several hours of admin work and a lot of struggles for HR departments.

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What is Payroll Software?

Payroll software is a digital tool used by people across the globe to automate salary disbursal process. The process of paying employees in New Zealand includes several steps like wage calculations, KiwiSaver contributions, leave entitlements and deductions without missing on tax regulations or employment laws. Modern payroll software helps in payslip generation, time tracking, IRD filing and offers employee self-service portals.

Why Payroll Software is Essential for New Zealand Businesses

New Zealand’s payroll system is shaped by complex regulations like the Holidays Act, PAYE, KiwiSaver, and IRD’s mandatory payday filing. A payroll system developed for New Zealand simplifies all the tasks effortless. It saves hours of manual effort and scales as the team grows, making it not just a helpful tool, but an essential one for every Kiwi business.

Read More–> Payroll Software Vs. Manual Payroll

To help businesses find the best fit, here are some of the top payroll solutions available in New Zealand.

Compare the Top Payroll Software in New Zealand 2025

1. DigiSME   

DigiSME offers payroll and HR software tailored for New Zealand’s businesses. From multiple pay cycles to complex leave policies and filing IRD, DigiSME has covered businesses. As the software incorporates all the essential features, it will be easier for the HR teams to access everything effortlessly. The modules like leave, claims, appraisal and time attendance software helps every business to automate workforce management.

Key Features

• IRD Auto-Filing -Submit payday filing directly to Inland Revenue in a few clicks. Zero stress and full compliance
• KiwiSaver Automation -Employers can easily calculate and deduct KiwiSaver contributions for both employer and employee with a flexible setup for each staff member
• Leave Management -Annual, sick and alternative holidays can be handled effortlessly with the integrated leave software as built-in calculations for holiday pay and average earnings are available
• Employee Self-Service Portal– Viewing payslips, applying for leaves and updating personal details is possible for employees from wherever they are. All they have to do is open the dedicated mobile app and access all the features
• Real-Time Payroll Reports -Companies can also access payroll summaries, cost breakdowns, and audit-friendly logs instantly
• Accounting Integrations -Connects with leading accounting platforms to streamline bookkeeping and avoid duplicate data entry

Why Choose DigiSME?

DigiSME is reliable yet region-specific HR software tailored to businesses’ requirements. From industry workers to tech startups, the HR software service provider is an ideal choice to streamline and simplify the payroll process in any organisation. With the best support and consistent updates, the software is by far the most suitable option.

2. PayHero  

PayHero is designed to enhance payroll processes specifically followed in New Zealand. When it comes to IRD reporting, time-off entitlements or other payroll-related benefits, employers get a clear picture of the entire process. It is an excellent option for businesses looking to automate and stay compliant.

Key Features

• Automated Payroll Runs- Wage calculations, PAYE, KiwiSaver, and deductions in just a few click
• Leave & Holiday Pay Management – Fully compliant with the Holidays Act, including average weekly earnings and 52-week calculations
• Employee Self-Service – Staff can log in, check payslips, update info, and request leave without chasing HR
• Time Tracking -Integrated timesheets make it easy to track hours and convert them into pay
• Compliance-Friendly Reporting -Auto-generate IRD files and payroll summaries for smooth audits

3. Employment Hero  

Employment Hero helps more than 300,000 businesses globally. However, it also offers a solution that caters to the needs of New Zealand’s payroll intricacies. The HR and payroll combination with data storage in the cloud makes it reliable for every business.

Key Features

• Automated Payroll – Import timesheets, alter pay rates when necessary, and track public holidays by automating the payroll process with the best software vendor.
• IRD Payday Filing – Automatically files pay runs with inland revenue
• KiwiSaver Made Easy – With KiwiSaver, the only task is to select deduction rates, and the rest will be taken care of by the system
• Roster & Shift Planning – Shift allocation, timesheet entry automation and real-time attendance tracking are all possible with the software
• Leave & Holiday Pay Tools – 52-week averaging, personalised leave templates and balance reports are accessible

4. Xero  

If you have been using Xero for accounting, then it’s time to add payroll to the workflow. It is cloud-based, easy to navigate, and the best option for SMEs in New Zealand.

Key Features

• Integrated Payroll with Accounting – No double handling payroll flows directly into your Xero ledger
• Employee Portal – Staff can view payslips, apply for leave, and update details on their own
• Auto Tax Filing – Handles PAYE, KiwiSaver, and IRD filing
• Mobile App Access – Run payroll and approve leave on the go
• Detailed Reports – Generate earnings summaries, tax deductions, and employee data anytime

5. PaySauce  

PaySauce includes several aspects, such as compliance, flexibility, and user-friendliness, into a tidy package for salary disbursal. It is easier to run payroll from the office or home.

 Key Features

• Automated Payroll – Pays wages, calculates PAYE and KiwiSaver, and sends payslips
• Leave Management – Approve, track, and automate leave entitlements in line with NZ’s Holidays Act
• Accounting Integration – Seamlessly sync with Xero and other popular platforms
• Mobile Access – Run payroll, approve timesheets, and handle leave requests from your phone
• Employee Self-Service – Staff can submit timesheets, check pay, and manage leave from their portal

6. FlexiTime  

FlexiTime lives up to its name and is designed for flexible teams, gig workers, and businesses that don’t operate on a traditional 9–5. If your team clocks in from different locations, this one’s built for you.

Key Features

• Time Tracking + Payroll – Link work hours to pay runs in real-time, including overtime and breaks
• Mobile-First Design – Perfect for remote teams and managers on the move
• Compliance Support – Handles tricky NZ payroll rules like holiday pay averaging and IRD reporting
• Employee Portal – Staff can access payslips, submit timesheets, and manage personal details
• Insights & Reporting – View payroll costs and timesheet data and leave trends at a glance

7. ADP

ADP might be known globally, but it also offers powerful tools for growing NZ businesses. It’s great for companies with complex workforce needs, from detailed reporting to integrated HR functions.

Key Features

• Full-Service Payroll – Automates tax calculations, deductions, direct deposits, and more
• HR & Benefits Management – Supports recruitment, onboarding, and performance tracking
• Compliance Monitoring – Keeps up with New Zealand’s evolving employment laws
• Advanced Analytics – Generate deep reports across payroll, HR, and workforce metrics
• Employee Access – Staff can view payslips, manage benefits, and update personal data via self-service tools

Key Features to Look for in Payroll Software

Not all payroll systems are built the same, especially in New Zealand. When evaluating your options, make sure the software includes:

• IRD Integration – Look for payday filing automation so you’re always compliant without manual uploads
• KiwiSaver Support – Automatic deductions and employer contributions that adjust to employee selections
• NZ Holiday Act Compliance – Leave balances and entitlements must be calculated based on 8% holiday pay, average earnings, and leave loading where relevant.
• Employee Self-Service – Your team should be able to access payslips, apply for leave, and update their own info without pestering HR
• Automated Pay Runs – Streamline processing with bulk payments, custom pay cycles, and real-time calculations
• Cloud Access – So you can manage payroll from your laptop, your batch, or a ferry crossing Cook Strait
• Integration – Syncs with your accounting or HR systems like Xero, MYOB, or time-tracking apps

Factors to Consider When Choosing Payroll Software in NZ

With so many options on the market, here’s what to think about before locking one in:

• Business Size & Growth: Is it built for SMEs or large enterprises? Will it grow with you?
• Industry Needs: Hospitality, agriculture, and retail all have different pay complexities, as your software should support them.
• Ease of Use: If your payroll feels like decoding ancient hieroglyphs, it’s time to switch.
• Customer Support: Is help available locally and during your working hours?
• Security & Data Storage: Does it meet NZ data protection laws? Are your records backed up in the cloud?
• Budget: You don’t need the most expensive solution—just the most efficient one for your setup.

How to Choose the Right Payroll Software for Your Business 

Here’s a simple process to get you to the right fit:

• List Your Must-Haves: Think IRD filing, employee portals, and integration with your accounting software.
• Demo a Few Tools: Most providers offer free trials. Try them out with dummy data
• Check NZ Compliance Features: Confirm they support KiwiSaver, leave calculations, and payday filing
• Ask About Support: Local support > 24/7 global bots

Tip: If you tick three or more boxes like “manual IRD filing,” “timesheet chaos,” or “employees chasing payslips”, it’s time to switch.

Common Challenges in Payroll Management

• Late IRD Submissions: One slip-up could mean penalties
• Holiday Pay Confusion: NZ’s leave laws are complex. Mistakes can lead to underpayment (or fines)
• Time Theft & Errors: Without automation, missed shifts and buddy punching can slip through the cracks
• Poor Record Keeping: Lost payslips or incorrect reports = audit nightmares
• No Employee Access: HR gets bogged down in answering basic pay queries

Future Trends in Payroll Software

The payroll world is evolving fast. Here’s what’s around the corner:

• AI-Powered Pay Insights: Tools that spot anomalies or recommend pay optimisations
• Real-Time Pay (Earned Wage Access): Employees access part of their pay before payday
• Tighter Compliance Automation: Systems will self-update as NZ laws change
• More Mobile-First Platforms: Payroll won’t be chained to your desktop any longer
• Deeper Integrations: Expect tighter syncs between payroll, HR, and performance software

Learn more about Payroll Integration in HRMS Software here!

Final Thoughts

New Zealand businesses, whether big or small, can’t afford to get payroll wrong. From staying onside with IRD to giving your staff a smooth payday experience, the right payroll software makes all the difference. Whether you’re a one-person operation or scaling fast, there’s a solution that fits your budget, business type, and future goals.

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