When does PAYE have to be paid each month? That’s the kind of question that doesn’t leave much room for error. One missed deadline and you could be dealing with IRD late payment penalties, interest charges, and unnecessary admin stress. Whether you’re a small business owner, payroll admin, or just trying to stay ahead of your tax obligations, you need straight answers.
In this guide, we’ll break down exactly when PAYE is due, how IRD decides your payment schedule, and what the rules are for small employers vs large employers. We’ll also cover paye due dates NZ, monthly employer deductions, and what to do if you’re running behind.
We’re keeping it simple: dates, rules, penalties, and tools to help you stay compliant. Plus, a bonus resource to help you track every deadline for the year. If you’ve ever Googled IRD PAYE payment schedule or how to pay PAYE NZ, this article is built for you.
Let’s get into it.
Understanding PAYE and employer deductions in New Zealand
Before we get into due dates, let’s quickly revisit what PAYE is. PAYE (Pay As You Earn) is how income tax, KiwiSaver, and other deductions are collected from your employees and sent to Inland Revenue. As an employer, you’re responsible for calculating and paying these deductions on time.
Here’s what PAYE typically includes:
- Income tax withheld from employee salaries
- Employer and employee KiwiSaver contributions
- Student loan repayments
- Child support or court-ordered deductions
For more context on how to handle employee tax rates, check our article on NZ tax codes.
PAYE payment due dates based on your total deductions
Now, to the big question: when does PAYE have to be paid each month? The answer depends on whether you’re a small or large employer, based on your annual PAYE and ESCT (Employer Superannuation Contribution Tax) totals.
Small employers (less than $500,000 annually)
If your total PAYE and ESCT is less than $500,000 per year, you’re a small employer. Your PAYE due date is the 20th of the following month after you pay your staff.
Example: If you pay employees on 15 March, you have until 20 April to file and pay.
Large employers ($500,000 or more annually)
If your annual PAYE and ESCT is $500,000 or more, you’re considered a large employer. You’ll need to pay PAYE twice a month:
- For wages paid between the 1st and 15th → due by the 20th of the same month
- For wages paid from the 16th to the end of the month → due by the 5th of the following month
Table: PAYE due date schedule
| Employer Type | PAYE/ESCT Threshold | Due Dates |
|---|---|---|
| Small Employer | Under $500,000/year | 20th of next month |
| Large Employer | Over $500,000/year | 5th and 20th each month |
To avoid late fees, read our full guide on PAYE late payment penalties in NZ.
How to pay PAYE and file returns to IRD
Once you know the due dates, the next step is to actually file and pay PAYE to IRD on MyIR. You’ll use the myIR portal to report payday filing and make payments.
Here’s how it works:
- File payday returns within 2 working days of each payday
- Include each employee’s gross earnings, tax, and KiwiSaver contributions
- Make payment via bank transfer or card through myIR
- You can automate this process using accounting software like Xero
For step-by-step automation, see our guide on adding payroll to Xero.
External resources:
- IRD guide to PAYE filing and payment
- IRD payday filing requirements
What happens if you miss a PAYE deadline?
Missing your PAYE due date isn’t something to take lightly. IRD doesn’t send reminders — but they will apply penalties and interest if your payment or return is late.
Here’s what you might face:
- A 1% penalty the day after the due date
- Another 4% penalty if it’s still unpaid after 7 days
- Interest charges on overdue amounts
- A mark on your compliance record
It’s not just about the money. Repeated lateness can trigger audits and impact your reputation with IRD.
If you’re already behind, act quickly. Check our article on PAYE late payment penalties NZ for what to expect and how to catch up.
Tips to stay on top of your PAYE obligations
Want to make sure you never miss a due date again? These tips can help you manage your payroll stress-free:
- Set recurring calendar reminders for the 5th and 20th
- Automate payroll in Xero or MYOB, so PAYE is calculated and filed automatically
- Reconcile your payroll accounts before the due date
- Work with a payroll advisor or accountant who can review your filings
- Keep an emergency cash buffer in case payday and payment dates fall close together
List of popular payroll tools in NZ:
- Xero Payroll
- MYOB Essentials
- Thankyou Payroll
- Crystal Payroll
- Paysauce
Learn how to integrate automation with our guide on adding payroll to Xero.
Bonus
To make your life easier, we’ve created a free downloadable PAYE calendar. Print it, pin it to your wall, or import the dates into your Google Calendar.
This bonus includes:
- Monthly PAYE due dates (small and large employer)
- Reminders for public holidays and adjusted deadlines
- Checklist to tick off each filing and payment
- Common IRD contact links for quick access
You can also set up automated alerts on your phone or email — small step, big peace of mind.
Conclusion
So, when does PAYE have to be paid each month? It depends on how much you deduct from your employees. If you’re a small employer, your due date is the 20th of the following month. If you’re a large employer, you need to pay twice a month — on the 5th and the 20th.
Missing these deadlines can lead to penalties, so the key is staying organised. Use payroll tools, set reminders, and file on time through myIR. If it still feels like a headache, BH Accounting can connect you with the right payroll expert to keep your business compliant and stress-free.
Need a checklist or a PAYE calendar? Download our bonus tool and make late payments a thing of the past.
FAQ about when does PAYE have to be paid each month
What is the PAYE due date for small employers in NZ?
The 20th of the following month after paying your staff.
How often do large employers pay PAYE?
Twice a month — on the 5th and 20th, depending on when wages are paid.
What happens if I pay PAYE late?
IRD applies penalties and interest, and your compliance rating may be affected.
Can I automate PAYE payments?
Yes. Software like Xero can automate both filing and payments to IRD.
Does the PAYE due date change on public holidays?
Yes. If the due date falls on a weekend or holiday, it moves to the next working day.