Payroll Glossary

Back pay (retroactive pay)

Bonus

Casual employee

Cloud-based payroll

Commission

Deduction

Deduction holiday

Deduction notice

Employee

Employee benefits

Employee deductions

Employee share schemes (ESS)

Employer

Employer superannuation contribution tax (ESCT)

Employment contract

Employment Information

Exempt income

Fringe benefit

Fringe benefits tax (FBT)

Garnishment (Court-ordered deduction)

Gratuity (tips)

Gross earnings

Gross wages / Gross pay

Holiday pay

Hours worked

Income statement

Income year

Inland Revenue Department (IRD)

IRD number

KiwiSaver

KiwiSaver employer contributions

Managed payroll

Minimum wage

Mondayisation

Net income

New Zealand Business Number (NZBN)

Onboarding

Ordinary income

Otherwise working day

Overtime

Pay as you earn (PAYE)

Tax deducted from an employee’s income by their employer, and paid to the Inland Revenue Department (IRD) on their behalf.

Pay as you earn (PAYE) intermediary

A payroll service provider that manages an employer’s PAYE and related tax obligations for them.

Pay cycle

Also called pay frequency, how often an employee is paid.

Pay period

Pay rate

Payroll

Personal income tax

Tax paid by individuals on their income.

Protected net earnings

The 60% of net earnings after child support deductions.

Remittance

Salary

Shadow payroll

Used by companies that are not from New Zealand but have employees working in New Zealand.

Sick leave

The amount of paid time off an employee is entitled to take when they are sick or have suffered an injury.

Statutory holiday

Superannuation

A retirement scheme.

Tax

Taxable income

Wages