You’ll learn how to

  • Understand the payroll changes that apply for EOFY 2026

  • Prepare payroll data ahead of key deadlines

  • Complete EOFY tasks correctly in Smartly

  • Avoid common EOFY issues that lead to rework or support queries

Untitled design (70)

Presented By Chris Mar
Compliance Lead, Datacom

Chris Mar is Datacom's Compliance Lead, and a recognised expert in New Zealand payroll legislation. He works closely with Inland Revenue and payroll teams to interpret legislative change and translate it into practical, real world guidance.

 

Ondemand Webinar

EOFY Payroll Changes 2026

Everything you need to know and do to complete EOFY with confidence

If you can’t attend live, register anyway - you’ll recieve the recording and EOFY resources afterwards. (2)

FAQs

Do employers need to apply to IRD for a temporary rate reduction on behalf of an employee?

Answer: No. 

Employees apply directly to IRD.

Once IRD approves the reduction, IRD will notify the and/or the employee can provide written confirmation to their employer of the rate reduction acceptance. The employer must then apply the approved rate in payroll.

Is it compulsory for employers to reduce their contribution to 3% if an employee has a temporary reduction?

Answer: No. 

Employees apply directly to IRD.

It is optional for an employer to reduce their contribution to 3% to match an employee’s temporary rate reduction. An employer can choose to continue to contribute at the new minimum employer contribution rate of 3.5%.

What happens to employees already contributing more than 3.5% (for example 4%, 6%, 8%, 10%)?

Answer: Nothing changes.

Employees apply directly to IRD.

If an employee is contributing above the minimum, their chosen rate remains.

Does KiwiSaver apply to casual employees or contractors?

Answer: Yes and no. 

Casual employees: Automatic enrolment does not apply to casual employees, but if they are already Kiwisaver members then Kiwisaver deductions and contributions apply.

Independent contractors: No, KiwiSaver does not apply and deductions and deductions and contributions should not be taken from payments made to independent contractors.

Is the ACC earner levy part of PAYE?

Answer: Yes. 

The ACC earner levy is included in PAYE deductions and is automatically calculated and deducted from employees’ wages.

Is the ACC earner levy only charged on self-employed people?

Answer: No. 

Employees pay the ACC earner levy through PAYE.

Self-employed people pay ACC through their own ACC invoices.

Can employers confirm whether an IRD number belongs to an employee?

Answer: Yes, by contacting IRD. 

IRD may ask for:

  • Date of birth
  • Address

IRD will typically only confirm yes or no.

If IRD sends a letter advising a tax code change, do we still need an IR330?

Answer:  If IRD instructs you to change a tax code. 

You must follow IRD’s instruction.

A new IR330 is not required if the change is initiated by IRD but you should retain the instruction you received from IRD for record keeping.