Global PEO in New Zealand
New Zealand is a remarkable country with a highly developed free-market economy. It’s also universally known for its quality of life and relaxed pace of living, even in its biggest cities. Of course, New Zealanders also have a very strong work ethic, and with a diverse and advanced tech sector, the country is a breeding ground for talent.
Thanks to the rise in remote work, you can now tap into New Zealand’s talent pool — and the process is much easier than what you’re probably thinking right now.
This is where a professional employer organization (PEO) like Skuad comes in handy. Skuad not only makes international hiring possible, but they also make it easy.
When you partner with a PEO in New Zealand, or anywhere else for that matter, you can hire, onboard, and pay your remote employees just as you would normally within your own country.
Curious to know what exactly a professional employer organization is and does? Keep reading to learn more.
What is a PEO?
You can think of a professional employer organization (PEO) as a human resources service provider and legal team.
It’s the PEO provider’s job to step in and take on the administrative responsibilities of HR. Managing payroll, creating competitive employee benefits packages, and ensuring that your business remains compliant are all tasks you can delegate over to a PEO — no matter which country you’re hiring in.
Generally speaking, PEOs mostly benefit startups and small to medium-sized businesses (SMEs) that don’t have the financial resources to hire internationally on their own. Of course, they’re also used frequently by larger enterprises that have the resources but would rather go with a more thrifty and less time-consuming option.
With the services that only a PEO can provide, you can build an international team with talented employees working remotely from virtually any country of your choosing, including New Zealand. What’s more, they’ll take care of everything from ensuring your international employees are paid in the correct currency to ensuring that the local statutory employer benefits are being fulfilled.
Are you wondering whether PEO services would be right for your business? Get in touch with a team member at Skuad today to walk you through the entire process.
What are the benefits of using a PEO provider in New Zealand?
Working with a PEO in New Zealand means opening up your business’s doors to the world. As you’ll see below, there are tons of advantages of partnering with PEO services in New Zealand and everywhere else.
Hire the best international talent
The candidates in your home country may be good. They may even be great. But are they the best for what your business needs in terms of growth and success?
When you find the right talent for your organization, you don’t want to let geographical distance get in the way.
New Zealand already successfully competes on the world’s stage for its technological innovation as it has a strong IT industrial base. This can only be done with workers bursting talent within these emerging fields! Thanks to the PEO services available in New Zealand, you can access the country’s talent pool of innovative workers so you don’t miss out.
Become a global competitor
When talented workers the world over seek employment from you (or have at least heard of who you are), then it’s safe to say you’re a desirable place to work.
When you partner with a PEO in New Zealand, they’ll ensure that you go above and beyond the required statutory benefits (in a cost-effective way!) to make your company even more attractive to top candidates.
Cut out unnecessary costs
Without the assistance of a professional employment organization, you’re looking at some very significant expenses. The kind that a small or even medium-sized business simply can’t afford.
For example, you would have to hire your own “in-house” team to manage HR. Not to mention you’d also have to hire a legal team to ensure you keep up with local labor legislation — and this is per country that you’re hiring in. Sounds pretty expensive, doesn’t it?
That’s why even enterprise-level corporations might choose to go the PEO route, because they are budgeting for other important things.
Gain insights into a new market
New Zealand has a free and open market, and it has close ties with Asia and the United States.
By hiring and onboarding New Zealand employees, you’ll gain valuable insights into the country’s surrounding markets. This is the best way to expand into those markets should you choose to do so.
Skuad can help you reach those markets. By getting in touch with one of our helpful team members, you can get started immediately.
Avoid setting up your own legal entity in New Zealand
Hiring an HR and legal team wouldn’t be your only expenses should you forgo the help of a professional employer organization in New Zealand. You would also have to form your own legal entity within the country, which takes months of manpower.
It also requires a lot of time and travel as you’ll be expected to be present during the time of incorporation and for other legal and business purposes. Unless you plan on physically expanding your business into the country, setting up a business in New Zealand isn’t really ideal.
Partnering with a PEO allows you to bypass all of this because PEOs already own fully-formed business entities in various countries. The PEO acts as your local legal entity and can even be an employer of record in New Zealand if you need it.
Adjust to the cultural norms
Each country has cultural differences when it comes to work and play. As an international employer, you’ll need to have a firm grasp on the various differences in each international employee you onboard.
Your PEO in New Zealand will ensure you’re aware (and respecting) any cultural practices among the kiwis.
Kiwis are what New Zealanders refer to themselves as. See, you’re learning something new already! Kiwis are also very proactive in the workplace, so expect to receive a lot of feedback from your new employees regarding projects, teams, and more.
Remain compliant with local legislation
The legal requirements for hiring employees and contractors in New Zealand might also be different to your home country.
Ignoring employment laws in New Zealand could land your business in serious trouble — we’re talking large penalties or even being banned from the country.
Let’s get into the specifics of what’s required when hiring and doing business in New Zealand:
- New Zealand’s workers are paid in the local currency, which is the New Zealand dollar (NZD or NZ$).
- Typical working hours run from 7.5 to 8 hours per day and between 30 and 40 hours per week. Full-time employees sometimes work in shifts, which may vary from one week to the next.
- Written employment contracts are required in New Zealand, and they must spell out the details of the employer and employee work agreement.
- There are no statutory limits or requirements for overtime and overtime pay.
- Employees are entitled to 20 days of paid vacation time after they’ve worked for a consecutive 12 months with the same employer.
- Employers must inform employees of termination as per the agreement within the employment contract. However, unless specified in the agreement, employees are not entitled to a severance pay.
New Zealand tax rates
Employees are taxed on the following New Zealand income tax rates:
- 10.5%: $0.00 - $14,000 (NZ$)
- 17.5%: $14,001 - $48,000 (NZ$)
- 30.0%: $48,001 - $70,000 (NZ$)
- 33.0%: $70,001 (NZ$) and above
The New Zealand corporate tax rate is currently set at 28%, and employers must contribute the following:
- 3.0% for the KiwiSaver (social security pension)
- Women are entitled to 56 weeks of unpaid leave and 26 weeks of paid maternity leave.
- Men are entitled to up to two weeks of paid paternity leave.
- Employees are entitled to 5 days of paid sick leave after having worked for 6 consecutive months.
Learn more about how Skuad’s PEO services in New Zealand can help your business to grow by booking a demo today.
What does it cost to build a team in New Zealand?
New Zealand company incorporation
When it comes to setting up a business in New Zealand — as in getting yourself a New Zealand company registration — you’re looking at some rather sizable expenses. Depending on the type of business entity you’re looking to form, you could be spending upwards of NZD $122,980.
That’s US $81,300 and €76,200, which includes most of the legal and government fees for incorporation. It also covers the cost of corporate banking fees. However, it can take upwards of 11 weeks for incorporation, which will cost more in regards to travel, accommodation, and your senior team members’ time.
PEO services in New Zealand
If you go with a PEO in New Zealand, the pricing will vary among the different service providers and packages they offer. With Skuad, you can actually get started for free, and cancel at any time, hassle-free.
Our PEO services in New Zealand and everywhere else start at $19 per month to start onboarding and paying your international employees. That’s more than reasonable if you ask us.
Plus, we offer employer of record services and custom pricing for enterprise-level businesses. All you have to do is work out your custom price package with our sales team.
Are you ready to start onboarding and paying employees in New Zealand? Book a demo of Skuad’s global PEO solution today.