Things to consider
Hiring an employee is a big decision. To make sure you hire the right person for the job, consider these things:
- how much work needs doing
- when work needs to be done by
- the difference between an employee and a contractor
- what level of responsibility you’re willing to take on
- what the rules are around different staff types.
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Use our tools to build an employment agreement and calculate the costs of hiring someone.
Employee cost calculator
The Employee Cost Calculator will help you gain the confidence you need to take that important next business step of employing staff.
Employment agreement builder
Our tool helps you create contracts tailored to your business and to each person you employ.
Register as an employer
No matter how long you’ve been in business for, hiring your first employee is a real milestone and an exciting step to take.
Register as an employer with Inland Revenue (IR) if you:
- know you’re going to hire a permanent, fixed-term or casual employee
- have your IR number ready
- you’ve considered offering your staff payroll donations or fringe benefits
- know of your responsibilities in relation to KiwiSaver accounts of your employees.
If you’re not sure of all the above, check Inland Revenue’s First-time employer’s guide.
Read the first-time employer's guide – Inland Revenue
If you are ready to go ahead, either:
- use Inland Revenue’s register as an employer online service
- post a completed Employer registration form (IR334) to IR.
What paid employees need
All paid employees need the following:
- any equipment needed to do their job, like a computer.
- a signed employment agreement specific to their role and employee type – this includes things like hours of work, location of work, description of work, and salary.
- a tax code declaration (IR330).
- relevant KiwiSaver forms (for New Zealand residents or those on a long-term visa).
- health and safety training and equipment.
You also need to:
- register as an employer with Inland Revenue
- deduct PAYE from your employees’ salary and wages, which you record in your Employer monthly schedule (IR348) and Employer deductions form (IR345)
- pay annual ACC levies.
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