Hiring and payroll in New Zealand

Introduction

New Zealand is an island in the Southwestern Pacific Ocean with a population of about five million people. As a developed country with English-speaking nationals, New Zealand is rated as one with an astounding quality of life, highly educated nationals, a vibrant economy, and favorable government policies.

New Zealand’s advanced tech economy is seen in the industry’s growth rate of 25% annually for the last ten years. As of 2021, the number of tech professionals in New Zealand reached a peak of 16,000.

For organizations planning to hire a remote team or pay employees in New Zealand, this guide offers in-depth information on the processes to follow for efficient hiring and payroll in New Zealand.

Hiring employees in New Zealand

The tech sector in New Zealand generates an estimated 3000 new jobs annually. With growing tech hubs in Auckland and Christchurch, New Zealand produces an astounding number of tech talent, considering its small population.

Organizations planning to hire a remote team in New Zealand will discover an essential pool of top tech talent in New Zealand proficient in English and highly skilled in their job roles.

How to hire employees in New Zealand

Popular job portals in New Zealand include My Jobspace, SEEK, Adzuna, Job Monster, Jora, and many more. Also, LinkedIn is an invaluable resource for job ad placements for organizations planning to hire a remote team in New Zealand.

Hiring with an Employer of Record in New Zealand

An Employer of Record is a third-party platform that enables global organizations compliantly hire employees, onboard talent, manage the organization’s payroll, and ensure compliance with New Zealand’s employment laws.

The Employer of Record in New Zealand offers exceptional employment services for organizations planning to hire a remote team in New Zealand or manage payroll by ensuring the organizations can efficiently carry out business operations without setting up a subsidiary or local entity.

Payroll in New Zealand

Payroll in New Zealand is strictly in accordance with New Zealand’s employment and payroll laws. New Zealand’s employment laws regulate the payment processes, payroll for benefits, termination of employment, and more.

Ensuring compliance with the payroll laws in New Zealand is crucial. But it can be challenging for organizations in New Zealand.

However, managing a team in New Zealand requires choosing the most suitable means to handle payroll in New Zealand. Two of the most essential and common standards include

Paying employees via subsidiaries

To hire employees, organizations must also comply with the legal requirements for paying employees in New Zealand. One of the requirements is remitting taxes, statutory social contributions, and employee deductions. Employers can only make these payments by partnering with a subsidiary or local entity in New Zealand.

Managing Payroll in New Zealand with an Employer of Record platform

Setting up a local entity or a subsidiary in New Zealand is challenging, time-consuming, and resource-intensive. However, a local entity or a subsidiary is crucial for organizations to manage their payroll in New Zealand effectively.

But with an Employer of Record platform, global organizations can pay their employees seamlessly without setting up a subsidiary in New Zealand. This becomes possible because the Employer of Record platform acts as the legal employer for the organization, handling all the requirements to manage payroll in New Zealand.

The Cost of Hiring an Employee in New Zealand

Organizations planning to hire a remote team in New Zealand must take note of the cost and resources it will require. Like every business pursuit, understanding the financial requirements is key to managing growth expectations and helps in efficient planning and structure of the organization.

Therefore, the cost required to hire an employee in New Zealand involves the following.

• The cost of business registration and subsidiary establishment
• Acquisition of a legal team
• The employment and payroll platform expenses
• Job boards ad placement costs
• Interviews and background checks expenses

Organizations planning to hire a remote team in New Zealand can do so at a cost-effective price by partnering with an Employer of Record platform like Skuad. Skuad is a global employment and payroll platform that handles the entire employment lifecycle of organizations in New Zealand by managing all employment-related activities and ensuring compliance with New Zealand’s employment laws.

Conclusion

An Employer of Record offers the best solution for organizations planning to hire a remote team or manage payroll in New Zealand. While expanding into a new country is challenging, an Employer of Record platform enables organizations to hire contractors and full-time employees, onboard talent, manage payroll, and ensure all employment-related activities comply with New Zealand employment laws.

Employer of Record platforms like Skuad ensures that organizations can build globally distributed teams quickly and without hassles. To know more about Skuad, book a demo today.