How to Set Up Nanny Payroll in NZ | 6 Key Steps for Employers | Pay The Nanny [ ![Pay the nanny logo](https://assets.paythenanny.nz/images/logo-white.png) ](/) [Parents](https://paythenanny.nz/For-Families) [Nannies](https://paythenanny.nz/For-Nannies) [Agencies](https://paythenanny.nz/for-agencies) [Pricing](https://paythenanny.nz/pricing) [Contact](https://paythenanny.nz/contact) [Sign Up](https://paythenanny.nz/signup) [Log In](https://paythenanny.nz/app/login) Article ------- How to Set Up Nanny Payroll in NZ | 6 Key Steps for Employers ============================================================= By Mark Hudson · 14 February, 2021 Hiring a nanny is exciting, but it also comes with legal and tax obligations. From signing a contract to setting up payroll, this guide breaks down the 6 steps every Kiwi family must follow to pay their nanny correctly (and stay on the IRD’s good side). ![How to Set Up Nanny Payroll in NZ | 6 Key Steps for Employers](https://assets.caresies.io/articles/609/conversions/xXO9qBfoRkRmft7qH114-webp-featured.webp) Steps to Pay Your Nanny in New Zealand -------------------------------------- *Updated 18th May 2025* While it‘s an exciting move, hiring a nanny comes with obligations and responsibilities that are important to make sure you get correct. Nannies can’t be paid cash under the table, and [they also aren’t independent contractors](https://paythenanny.nz/articles/should-your-nanny-be-a-contractor-or-an-employee). Therefore, nannies need to be treated like any other employee. For many households this brings a lot of challenges and uncertainty. To make it easy for you we’ve out lined 6 key steps to make sure that your nanny is paid correctly. Sign an employment contract --------------------------- Once you’ve hired a nanny, the first step is to make sure that you have an employment contract in place. There’s a number of questions and things to consider at this step: - Is my nanny casual, part-time, fixed term or a full-time employee? - What rate should I pay my nanny? - What other benefits are included in my nanny’s employment package? - Will my nanny be paid the standard amount of sick days each year or will this be a different amount? - What is the notice period for my nanny? - What are the agreed hours each day for my nanny? Any employment contract must also include a job description which can provide a great way to set clear expectations for your nanny and her duties on a day to day basis. Register as an employer ----------------------- As soon as both parties have signed their employment contract, you need to register as an employer with the IRD and before you can do this you need an IRD number. H[ere’s the link on how to get one, if you don’t have one.](http://www.ird.govt.nz/how-to/irdnumbers/apply-for-ird-number-index.html) If you do, then there are two ways you can register as an employer: - Online through your MyIR - By downloading and completing the Employer Registration Form (IR334) If you are using Pay The Nanny, you can skip this step as we make that aspect simple. Set up your payroll system -------------------------- While you can manage your payroll manually, we suggest that you use a payroll software. This will help reduce manual errors and make it much easier when it comes to filing and paying your taxes on a monthly basis. There are a number of great cloud-based software to choose from: - Payhero - I-payroll - Smartly Most of the payroll providers are fairly similar but we find that flexitime has the best pricing structure and has the best usability. Collect the necessary information ---------------------------------- There are a number of documents that you need to collect from each employee that starts with you. Before your nanny begins, make sure you have the following information: - Proof of their right to work in NZ - Completed tax code declaration (IR330) - Completed Kiwisaver forms (KS2 or KS10) - Bank account details - Any other relevant information If you’re not sure on which documents should be completed, get in touch with us via email or contact your accountant. Make sure you pay your nanny taxes ---------------------------------- Not paying your nanny taxes can get you on the wrong side of the IRD very quickly, so it pays to stay as up to date on these as possible. You will be responsible for paying taxes for your nanny and these include: - Income tax (PAYE) - KiwiSaver contributions, if they're a member of KiwiSaver - Child support payments, if they owe child support, and - Student loan payments, if they have a student loan These are filed and paid on the 20th of each month for the prior month. We recommend that you use a PAYE intermediary, or a payroll provider like us, to ensure that you don’t miss deadlines or make the wrong payments. Manage leave and statutory obligations -------------------------------------- One last important thing is to make sure that you’re [calculating the correct leave entitlements. ](https://www.employment.govt.nz/pay-and-hours/pay-and-wages/leave-and-holiday-pay) Your nanny is entitled to the same minimum leave provisions as other employees in New Zealand, including: - Annual Leave: Four weeks of paid leave after 12 months of continuous employment. - Public Holidays: Paid days off if the holiday falls on a normal working day. - Sick Leave: Ten days after six months - Bereavement Leave and Family Violence Leave: Available in specific circumstances. You also need to factor in KiwiSaver contributions, parental leave entitlements, and ACC levies. These statutory obligations can be complex to manage, especially when juggling your own work and family life. About Pay The Nanny ------------------- Our mission is to make it as simple as possible for households to manage payroll for their nannies. Pay The Nanny provides simple, accurate and flexible nanny payroll services to nanny employers. We take care of everything to do with PAYE, ACC, holiday pay, sick pay, maternity leave and KiwiSaver. Whether you’ve hired a nanny for the first time or you’re looking to streamline your current setup, we’re here to take the admin off your plate. From employment contracts and tax filing to leave tracking and payslip generation, we handle the details - so you can focus on your family. Get [setup today](https://paythenanny.nz/signup) or [contact us](https://paythenanny.nz/contact) and we'll help point you in the right direction. [ ![](https://assets.caresies.io/articles/572/conversions/hqn8vRjgfXajAzxnIDbg-webp-featured.webp) ](https://paythenanny.nz/articles/covid-19-omicron-information)By Mark Hudson · 03 February, 2022 ### [Covid-19: Omicron information](https://paythenanny.nz/articles/covid-19-omicron-information) General Guidance for Domestic Employers The start of 2022 has bought slightly more uncertainty around Covid-19 and how workplaces need to prepare.A lot of the resources and information that are available don’t cover domestic workers, or nannies, so the purpose of this post is to provide a bit more guidance around how domestic employers can prepa [Read more...](https://paythenanny.nz/articles/covid-19-omicron-information) [ ![](https://assets.caresies.io/articles/2470/conversions/G6UmSaW1fD0BnrD2Ncl4-webp-featured.webp) ](https://paythenanny.nz/articles/nanny-employer-payroll-changes-new-zealand-2026)By Mark Hudson · 19 March, 2026 ### [Nanny Employer Payroll Changes New Zealand 2026](https://paythenanny.nz/articles/nanny-employer-payroll-changes-new-zealand-2026) From April 2026, several payroll changes will impact families employing nannies in New Zealand. From minimum wage increases to KiwiSaver and ACC updates, staying compliant is key. Here’s a simple guide to what’s changing and what it means for you. [Read more...](https://paythenanny.nz/articles/nanny-employer-payroll-changes-new-zealand-2026) [ ![](https://assets.caresies.io/articles/2435/conversions/7ukqEIoIZfe8Pab4eSN0-webp-featured.webp) ](https://paythenanny.nz/articles/sick-leave-acc-and-parental-leave-for-nannies)By Mark Hudson · 04 February, 2026 ### [What Happens to Payroll When Your Nanny Gets Sick, Injured, or Pregnant in NZ?](https://paythenanny.nz/articles/sick-leave-acc-and-parental-leave-for-nannies) Hiring a nanny means becoming an employer, and real life does not stop once payroll is set up. If your nanny gets sick, injured, or pregnant, payroll obligations can quickly feel confusing. Here is how nanny payroll works in New Zealand during major life events, explained clearly and calmly. [Read more...](https://paythenanny.nz/articles/sick-leave-acc-and-parental-leave-for-nannies) [ ![](https://assets.caresies.io/articles/570/conversions/kp3hCu3p2TPnt8mqWnCi-webp-featured.webp) ](https://paythenanny.nz/articles/pay-rates-for-nannies-in-2022)By Mark Hudson · 10 March, 2022 ### [Pay Rates for Nannies in 2022](https://paythenanny.nz/articles/pay-rates-for-nannies-in-2022) Wondering how much to pay your nanny in New Zealand? Our 2022 guide breaks down average hourly rates, regional trends, and the extra costs employers should consider. Learn how to stay compliant and simplify payroll with Pay The Nanny’s expert support. [Read more...](https://paythenanny.nz/articles/pay-rates-for-nannies-in-2022) [ ![](https://assets.caresies.io/articles/1747/conversions/Cxh61ybK5FDJsyb45yPD-webp-featured.webp) ](https://paythenanny.nz/articles/au-pair-pay-rates)By Mark Hudson · 19 February, 2026 ### [2026 Au Pair Rates and Hiring Guide](https://paythenanny.nz/articles/au-pair-pay-rates) Thinking of hiring an au pair in 2026? This updated guide covers everything Kiwi families need to know - from legal requirements and payroll setup to pay rates, board and lodgings, and where to find the right fit. Make sure you’re compliant, fair, and set up for a great experience. [Read more...](https://paythenanny.nz/articles/au-pair-pay-rates) ![Pay the nanny](https://paythenanny.nz/images/logo-white.png)Join Our Community Stay in the loop! Subscribe to receive the latest updates, exclusive content, and special offers straight to your inbox. 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