Payroll records

Published Thursday 23 July 2026

Table of contents

• What are payroll records?
• What information do payroll records include?
• Why are payroll records important?
• How long do you need to keep payroll records in New Zealand?
• How to keep and store payroll records
• Simplify payroll record-keeping with Xero
• FAQs on payroll records
• Related terms
• Learn more about payroll records

Key takeaways

• Payroll records are documents that show each employee’s pay and how it was worked out.
• They cover pay rates and hours, wages and how they were calculated, leave and holidays, deductions such as PAYE and KiwiSaver, and each employee’s IRD number.
• In New Zealand, wage, time, holiday and leave records must be kept for at least 6 years, while Inland Revenue asks you to keep tax records for 7 years.
• You can keep payroll records on paper or electronically, as long as they’re accurate, secure and easy to access.

What are payroll records?

Payroll records are documents that hold information on each employee’s pay, including how that pay was worked out. You can keep them in paper or electronic form, and they’re sometimes called employee pay records.

In New Zealand, payroll records bring together everything behind each pay run, from wages and hours to leave, deductions and each person’s IRD number.

What information do payroll records include?

Payroll records capture the detail behind every pay run, so you can show how each amount was calculated. Much of this information also appears on each payslip you give your employees.

Your payroll records should typically include:

• pay rates and the hours each employee worked
• wages paid and how those wages were calculated
• leave and holidays taken and paid, such as annual holidays and sick leave
• deductions such as PAYE and KiwiSaver contributions
• the employee’s IRD number
• the start date and, if relevant, the end date of employment

Why are payroll records important?

Accurate payroll records help you comply with New Zealand employment law and make sure each person’s pay and leave are correct. They also protect you and your employee if a dispute arises, because you can show exactly what was paid and why.

A Labour Inspector can ask to see your wage, time, holiday and leave records, so keeping them complete and up to date matters.

How long do you need to keep payroll records in New Zealand?

Different rules set different timeframes, so it helps to know both. Wage, time, holiday and leave records must be kept for at least 6 years under the Employment Relations Act 2000 and the Holidays Act 2003.

Inland Revenue (IRD) requires business and payroll tax records to be kept for 7 years. Keeping your records for 7 years covers both obligations, which is the simplest approach for most small businesses.

For the full detail, you can check the guidance from Employment New Zealand and Inland Revenue.

How to keep and store payroll records

You can keep payroll records on paper or electronically, whichever suits your business. Whatever you choose, the records must be readily accessible, in English, and kept secure. Using payroll software makes this easier by storing everything in one place.

A few practices keep your records reliable:

• store records so you can find and read them quickly when needed
• keep everything in English so it’s clear to an employee or a Labour Inspector
• protect the records with secure storage and limited access

If you’re setting things up from scratch, this guide on how to do payroll walks through the basics.

Simplify payroll record-keeping with Xero

Keeping payroll records accurate and secure gets easier when your pay runs, leave and deductions live in one place. Xero helps pull this together automatically, so your records can stay organised and ready whenever you need them. See how it works and get one month free.

FAQs on payroll records

Here are answers to some frequently asked questions about payroll records for New Zealand small businesses.

How long do you need to keep payroll records in New Zealand?

Keep wage, time, holiday and leave records for at least 6 years, and tax records for 7 years to meet Inland Revenue rules. Holding everything for 7 years is the safest way to cover both.

What information must payroll records include?

They must show pay rates, hours worked, wages and how they were calculated, leave and deductions such as PAYE and KiwiSaver. You also need each employee’s IRD number and their employment dates.

Can payroll records be kept electronically?

Yes, you can keep payroll records electronically or on paper. Either way, they need to be accurate, secure, in English, and easy to access.

Can employees see their own payroll records?

Yes, employees have the right to access their own payroll records. You should be able to provide them when asked, so keeping the records organised helps.

Related terms

• Payslip
• Payroll

Learn more about payroll records

• Guide to hiring employees
• How to run payroll
• Payroll accounting software guide
• Free payslip generator