What You Need to Know About PAYE and Tax for Nannies in New Zealand | 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 ------- What You Need to Know About PAYE and Tax for Nannies in New Zealand =================================================================== By Mark Hudson · 07 November, 2025 Hiring a nanny in New Zealand means becoming an employer. Here’s everything you need to know about PAYE, KiwiSaver, and tax obligations - and how Pay The Nanny makes it simple to stay compliant. ![What You Need to Know About PAYE and Tax for Nannies in New Zealand](https://assets.caresies.io/articles/2345/conversions/87HTdiuFoFOykn9m2foQ-webp-featured.webp) What Is PAYE (Pay As You Earn)? ------------------------------- **PAYE** stands for *Pay As You Earn* and is New Zealand’s system for collecting income tax directly from employee wages. As the employer, it’s your job to: - Deduct PAYE tax from your nanny’s gross pay each payday - Deduct or contribute to KiwiSaver (if your nanny is enrolled) - File payday information with Inland Revenue (IRD) - Pay the tax and contributions to IRD on time Each payday, you must calculate your nanny’s net pay after tax and deductions, then send the PAYE amount to IRD. You can learn more about employer responsibilities on the [IRD website here.](https://www.ird.govt.nz/roles/employers) Understanding Your Nanny’s Tax and Deductions --------------------------------------------- Your nanny’s total deductions depend on their individual circumstances, but generally include: · PAYE Tax – Employer Deducts · Kiwisaver – Employer/Employee Contributions · Board & Lodgings (if applicable) – Employer deducts · Student Loan (if applicable) – Employer deducts It’s important to use the correct **tax code**, which your nanny provides on their [IR330 form](https://www.ird.govt.nz/income-tax/income-tax-for-individuals/tax-codes-and-tax-rates-for-individuals/complete-my-tax-code-declaration). Using the wrong code can cause over- or under-payments that must later be corrected with IRD. Employer Obligations Beyond PAYE -------------------------------- As a [nanny employer](https://paythenanny.nz/articles/should-your-nanny-be-a-contractor-or-an-employee), your responsibilities don’t stop at tax deductions. You must also: - Provide an employment agreement: Required by law for all employees. You can find templates on Employment New Zealand’s website. - Record hours and pay: Maintain accurate records of hours worked, gross pay, deductions, and leave entitlements. - Provide payslips: Each pay period should show gross pay, tax, KiwiSaver, and net pay. - Pay holiday and sick leave correctly: Nannies are entitled to annual leave, public holidays, and sick leave under the Holidays Act 2003. - Register as an employer with IRD: Before making your first payment, you must register as an employer to file PAYE returns. If you are using Pay The Nanny, you can ignore this step, we sort it all for you. What About KiwiSaver? ---------------------- If your nanny is eligible for **[KiwiSaver](https://paythenanny.nz/articles/kiwisaver-changes-in-new-zealand)**, you must: - Deduct the employee’s chosen contribution rate (usually 3%) - Contribute a minimum of 3% as the employer - Include KiwiSaver deductions in your regular PAYE filings You can find official KiwiSaver employer details on IRD’s KiwiSaver employer page. Why DIY Payroll Can Be Risky ---------------------------- Managing nanny payroll manually can lead to costly errors, [paying in cash](https://paythenanny.nz/articles/risks-of-paying-your-nanny-cash), from missed tax filings to incorrect leave calculations. A single misstep can trigger IRD penalties or underpaid entitlements. Common DIY mistakes include: - Using the wrong tax code or not updating it - Missing payday filing deadlines - Forgetting KiwiSaver or ACC contributions - Miscalculating holiday pay or sick leave - Paying net instead of gross rates by mistake How Pay The Nanny Makes It Simple --------------------------------- **[Pay The Nanny](https://paythenanny.nz/)** takes care of everything - from tax calculations and PAYE filings to KiwiSaver and ACC. We act as your payroll partner, ensuring every detail is accurate and compliant. Here’s what we handle for you: - Automatic PAYE tax deductions and IRD filings - KiwiSaver and ACC management - Payslips and employer records - Holiday, sick leave, and public holiday calculations - Year-end reporting and compliance support You stay compliant, your nanny gets paid correctly, and everyone has peace of mind. Final Thoughts -------------- Hiring a nanny brings freedom and flexibility to family life, but it also brings payroll responsibilities that shouldn’t be overlooked. By understanding your PAYE and tax obligations and partnering with [Pay The Nann](https://paythenanny.nz/)**y**, you can ensure your nanny’s pay is correct, your taxes are on time, and your household stays fully compliant with New Zealand employment law. **Learn more or get started today at [paythenanny.nz](https://paythenanny.nz/contact)** [ ![](https://assets.caresies.io/articles/2291/conversions/V94c7962A5Yf60q2pdrp-webp-featured.webp) ](https://paythenanny.nz/articles/nanny-payslip-explained)By Mark Hudson · 26 September, 2025 ### [The Secret Life of a Nanny’s Payslip](https://paythenanny.nz/articles/nanny-payslip-explained) Ever wondered what your nanny’s payslip is really saying? From PAYE tax to KiwiSaver to holiday pay, here’s a lighthearted behind-the-scenes look at the secret life of a nanny’s payslip in New Zealand. [Read more...](https://paythenanny.nz/articles/nanny-payslip-explained) [ ![](https://assets.caresies.io/articles/2512/conversions/csjF1e66YT3IWm6MfxUH-webp-featured.webp) ](https://paythenanny.nz/articles/being-paid-as-a-nanny)By Mark Hudson · 14 May, 2026 ### [Why Being Paid Properly Matters as a Nanny](https://paythenanny.nz/articles/being-paid-as-a-nanny) Being paid properly as a nanny is about much more than money in your account. It protects your income, your leave, your KiwiSaver and your future plans. Here's why proper payroll matters for nannies in New Zealand [Read more...](https://paythenanny.nz/articles/being-paid-as-a-nanny) [ ![](https://assets.caresies.io/articles/562/conversions/Cafa8S1zQsvmknTRX31L-webp-featured.webp) ](https://paythenanny.nz/articles/payroll-for-au-pairs)By Mark Hudson · 11 July, 2022 ### [Payroll for Au Pairs | Pay The Nanny](https://paythenanny.nz/articles/payroll-for-au-pairs) Hiring an au pair in New Zealand? From pay rates to tax obligations, this guide covers everything you need to know about au pair payroll. Discover how Pay The Nanny can simplify compliance, save time, and take the stress out of paying your new household employee. [Read more...](https://paythenanny.nz/articles/payroll-for-au-pairs) [ ![](https://assets.caresies.io/articles/676/conversions/XgEbGStrAzd0eQwEE8JF-webp-featured.webp) ](https://paythenanny.nz/articles/2024-guide-to-au-pair-payroll-in-new-zealand)By Mark Hudson · 14 July, 2024 ### [2024 Guide to Au Pair Payroll in New Zealand](https://paythenanny.nz/articles/2024-guide-to-au-pair-payroll-in-new-zealand) In this guide, we explore the essentials of hiring and managing an au pair in New Zealand, from understanding the unique role of au pairs compared to nannies, to navigating the legal landscape of employment, setting up proper payroll systems, and managing specific payroll components like board and lodgings. [Read more...](https://paythenanny.nz/articles/2024-guide-to-au-pair-payroll-in-new-zealand) [ ![](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. We dont sell your personal data LINKS [Parents](https://paythenanny.nz/For-Families) [Nannies](https://paythenanny.nz/For-Nannies) [Agencies](https://paythenanny.nz/for-agencies) [Pricing](https://paythenanny.nz/pricing) RESOURCES [Contact](https://paythenanny.nz/contact) [FAQ & System Support](https://paythenanny.nz/faq) [Articles](https://paythenanny.nz/articles) [Pay the Nanny AU](https://paythenanny.com.au) SOCIAL [ @paythenanny ](https://www.instagram.com/paythenanny) [ @paythenanny ](https://www.facebook.com/PayTheNanny/) [ @paythenanny ](https://www.linkedin.com/company/pay-the-nanny) [![Download Pay The Nanny from the App Store](https://assets.paythenanny.nz/images/web/app-store.png)](https://apps.apple.com/app/pay-the-nanny/id1666380560 "Download Pay The Nanny from the App store") [![Get Pay The Nanny on Google Play](https://assets.paythenanny.nz/images/web/play-store.png)](https://play.google.com/store/apps/details?id=io.caresies "Download Pay The Nanny from the Play store") © All Rights Reserved | Pay The Nanny (NZ) Limited [Terms](https://paythenanny.nz/terms-and-conditions) [Privacy](https://paythenanny.nz/privacy)