Why pay compliance matters most
For many employers, the biggest risk is not termination. It is pay compliance. Payroll errors are expensive to fix, slow to audit, and damaging to your reputation.
Small errors compound quickly. A miscalculation applied across pay periods becomes a large problem. We help you prevent these issues before they start.
Prevention is far less costly than remediation. We review your payroll settings to catch problems early.
Minimum wage compliance
Compliance is not just about the rate in the agreement. It is about what the employee actually receives for hours worked. Unpaid time, deductions, and salary arrangements that mask long hours all affect the calculation.
From 1 April 2026: Adult minimum wage increases to $23.95 per hour. Starting-out and training minimum wage increases to $19.16 per hour.
Records that prove compliance:
- Days worked and hours worked each day
- How wages were calculated for each period
- Leave taken, leave payments, and current balances
Important:
If records are missing or do not line up, the employer is immediately at a disadvantage in any complaint.
Deductions and KiwiSaver
Deductions require written consent. They also need careful management so pay still meets minimum requirements. We review your deduction arrangements to confirm compliance.
From 1 April 2026, the default employee and employer rate increases to 3.5%.
Employees can apply from 1 February 2026 to continue at 3% for a limited period.
Employer contributions extend to eligible 16 and 17-year-old employees from April 2026.
All deductions need documented consent. We help you get the paperwork right.
Hawke's Bay: accommodation deductions
Accommodation is common in local seasonal industries. We regularly see problems in this area that create significant compliance risk.
- Deductions without proper written authorisation
- Deductions that reduce pay below the minimum wage floor
- Unclear cash value calculations for accommodation
- Roster and travel time creating unexpected wage issues
If you provide accommodation, we help you treat it as a compliance project. Informal arrangements create risk.
If you discover an underpayment
The early decisions matter most. We guide employers through each step to limit exposure and resolve the issue properly.
- 1 Fix the payroll setting so the error stops continuing.
- 2 Scope the issue: which employees, which period, which pay elements?
- 3 Document your approach for calculating and communicating the remediation.
- 4 Get advice from us early if the issue is large, long-running, or could trigger a complaint.
Note:
Recent criminal law developments make it even more important to treat wage compliance seriously. We can explain what this means for your business.
When to get advice from us
We recommend a compliance review if any of these apply to your business.
- You use accommodation deductions
- Salaried roles where hours can increase in peak periods
- You pay contractors per job
- You have identified historic underpayments
- You are uncertain about minimum wage compliance
Payroll issues compound. Get advice from us early. Call 06 835 7394 or email mailbox@cardow.co.nz .
What we do at this stage
We run payroll and minimum standards audits, advise on deductions and salary structures, plan remediation when issues surface, and refresh your documentation to prevent repeat problems.
