Full source list for What does hiring my first employee actually look like — and what does it commit me to?
Six numbered references for /wayfinder/refs/hiring-your-first-employee:
1. Contractor vs employee classification: from 21 February 2026, the Employment Relations Amendment Act 2026 inserted a new gateway test in section 6(7) of the Employment Relations Act 2000. If all five criteria are met (written agreement, freedom to work for others, flexibility on hours or ability to subcontract, no termination for declining additional work, reasonable opportunity to seek independent advice), the worker is a "specified contractor" and cannot challenge their employment status. If any criterion is missed, the previous "real nature of the relationship" test applies. Misclassification exposes the employer to PAYE backpay, holiday pay backpay, ACC levies, and potentially personal grievance proceedings.
2. Payday filing: under section 23 of the Tax Administration Act 1994, employers must file employment information with Inland Revenue within two working days of each payday, via myIR or via integrated payroll software. The filing covers PAYE, KiwiSaver employee deductions, KiwiSaver employer contributions, ACC earner levy, student loan deductions, child support deductions, and any other statutory deductions for the relevant pay period. PAYE payment is due by the 20th of the month following the payroll month.
3. Employment agreement requirements: section 65 of the Employment Relations Act 2000 sets the mandatory contents of an individual employment agreement. The agreement must be in writing, signed before the employee starts work, and must include the names of the parties, a description of the work, the place of work, hours of work, wages or salary, and any other terms that are agreed. Trial period provisions (section 67A and 67B) have additional requirements — see the entry on 90-day trial periods.
4. KiwiSaver changes from 1 April 2026: the minimum compulsory employer contribution rate increased from 3% to 3.5% of gross salary or wages. The default employee deduction rate (where the employee does not nominate a rate) increased from 3% to 3.5%. Compulsory employer contributions now apply to eligible employees aged 16 and 17 (previously 18 and over). A new temporary-rate-reduction provision allows employees to apply to Inland Revenue for a 3% rate for 3-12 months; the reduced rate applies only after IRD or the employee has notified the employer. Automatic enrolment continues for employees aged 18-64 (with no compulsory employer contributions for those over 65); the 8-week opt-out window (technically days 14-56) is unchanged.
5. ACC employer levies: under the Accident Compensation Act 2001, employers pay two levies — the Work levy (rate varies by industry classification under the CU code system) and the Working Safer levy (small flat rate). Both are billed annually by ACC based on prior-year payroll, not deducted at payday. Industry classification is set at employer registration and significantly affects the Work levy rate.
6. Personal grievance regime: from 21 February 2026, the Employment Relations Amendment Act 2026 changed several aspects of the personal grievance framework — the high-income $200,000 carve-out for unjustified dismissal, contributory-conduct remedy reductions, the procedural-defects standard under section 103A(5), and the trial-period protection. The underlying personal grievance regime continues to apply from day one of any employment relationship; the reforms tightened employer protections without loosening the underlying obligation to act in good faith. See the entry on personal grievance reforms for detail.