Hiring Your First Employee as a New NZ Company: What You Need to Know
Thinking about hiring your first employee after registering your NZ company? Here is what you need to set up before day one.
Congratulations on your new NZ company
If you have just registered a limited company in New Zealand, you might already be thinking about hiring your first employee. It is an exciting step, but there are a few things to set up before you make that first offer.
1. Employment agreements are mandatory
Under the Employment Relations Act 2000, every employee in New Zealand must have a written employment agreement before they start work. It must include at minimum: the names of the parties, a description of the work, the place of work, the agreed hours, and the wage or salary. Verbal agreements are not sufficient.
You can use a simple template from Employment New Zealand (employment.govt.nz), but many new employers work with an HR consultant or employment lawyer to make sure their agreement is compliant, especially if the role involves specific conditions, IP ownership, or restraint of trade clauses.
2. Register for PAYE with Inland Revenue
As soon as you have an employee, you become an employer for tax purposes. You need to register as an employer with Inland Revenue (IRD) and file Employment Information (EI) each pay period via myIR or payroll software. PAYE, student loan deductions, and KiwiSaver contributions must all be deducted at source and paid to IRD on schedule.
Most new employers use payroll software (Xero, MYOB Payroll, or PayHero) to automate this. Your accountant or a payroll specialist can help set this up and make sure you are filing correctly from day one.
3. Enrol employees in KiwiSaver
You are legally required to automatically enrol new employees in KiwiSaver unless they opt out within 56 days. You must deduct employee contributions (3% minimum of gross salary) and add an employer contribution of at least 3%. These are paid to IRD alongside PAYE.
Keep records of any opt-out elections in case IRD asks.
4. Register for ACC as an employer
Employers in New Zealand pay ACC (Accident Compensation Corporation) levies on all employee earnings. The rate depends on the industry classification of your business. ACC will send you an invoice once IRD notifies them of your first payroll filing. Some industries have significantly higher rates than others - if you are in construction, trades, or anything physical, talk to your accountant or insurance advisor about what to expect.
5. Health and safety obligations
Under the Health and Safety at Work Act 2015, as a Person Conducting a Business or Undertaking (PCBU), you have a primary duty of care for your workers. For most office or service-based businesses this means basic things: safe premises, adequate equipment, emergency procedures, and a no-bullying culture. For trades, construction, or higher-risk industries, the requirements are more substantial.
A health and safety consultant can help you put a policy in place, especially if you are in a higher-risk sector.
Get connected with the right advisor
The good news is that you do not have to figure all of this out yourself. Payroll advisors, HR consultants, and accountants who work with new NZ companies do this every day. If you want to be matched with a local professional who works with new companies in your region, use our free matching service.