Payroll compliance changes from 1 April 2026

Automatic KiwiSaver changes

The default minimum contribution rate for both employees and employers will increase from 3% to 3.5%. This means from 1 April 2026:

• all employees currently on 3% will automatically move to 3.5%

• employer contribution rates set between 3–3.5% will also automatically move to 3.5%

• all new employees will default to 3.5%

KiwiSaver changes that might need your action

• If you're processing a pay after 1 April but the pay is for the previous financial year, you will need to manually change the KiwiSaver rates back to 3% in each employee record before recording the pay. You can then change the rate back to 3.5% after recording the pay (Payroll menu > Employees > click the employee > Employment tab).

• Employees aged 16-17 who are enrolled in KiwiSaver will become eligible for compulsory employer contributions.

  • If you have 16-17 year old employees, you will need to set the the Employer contribution rate (%) to 3.5% in the employee's record (Payroll menu > Employees > click the employee > Employment tab).

• From 1 February 2026, employees can apply to Inland Revenue for a temporary rate reduction from 3.5% to 3%, applicable from 1 April 2026. How employees can apply

  • The rate reduction also applies to employer contributions, allowing you to temporarily contribute 3%.

  • The rate reduction can be approved for a minimum of three months to a maximum of 12 months. Employees must re-apply to extend it.

  • If an employee has an approved temporary rate reduction to 3%, you will need to manually select 3% for the Employee contribution rate (%) in employee's record (Payroll menu > Employees > click the employee > Employment tab). You can also adjust the Employer contribution rate (%) to 3% if you like - this is up to you.

  • There isn't an auto-expiry option for exemptions, so you'll need to track expiry dates yourself. For example, you could add a note to the employee's record in MYOB Business.

ACC earner's levy changes

MYOB Business will automatically apply these ACC changes in your first pay where the Date of payment in the pay run is 1 April 2026 or later.

Employees with STC or STC SL tax code

New employees with the STC or STC SL tax code who are added to MYOB Business from 1 April 2026 will automatically have the ACC earner levy rate set to 1.75%.

If an existing employee has the STC or STC SL tax code, you'll need to manually update their ACC levy (%) to 1.75%. To check or update the rate, go to the Payroll menu > Employees > click the employee > Employment tab > ACC levy (%).

Minimum wage increase

If you need to update an employee's pay rate, here are the details.