PEO Services in New Zealand

A co-employment model for companies that want to share the employer relationship in New Zealand rather than hand it over entirely. Worth knowing up front: true PEO co-employment is far less established in New Zealand than in the US, so we will tell you honestly whether PEO or an EOR genuinely fits, and place you with the right vetted partner.

  • Independent advice
  • Vetted partners
  • Honest positioning

What a PEO does in New Zealand

A Professional Employer Organisation works on a co-employment model. You and the PEO partner share the legal employer responsibilities for your New Zealand staff: you keep direction and day-to-day control, while the partner administers payroll, PAYE, ACC levies, KiwiSaver, and HR compliance under a shared arrangement.

01

Shared employer role

You and the PEO partner share the legal employer responsibilities. You keep direction and control; they handle payroll, PAYE, ACC levies, KiwiSaver, and HR administration.

02

More direct control

PEO suits companies that want to retain more direct control of the employment relationship than a full EOR arrangement allows. In New Zealand, true co-employment is uncommon, so EOR is usually the better fit.

03

Honest recommendation

For most companies hiring in New Zealand, EOR is simpler. We will tell you honestly whether PEO genuinely fits your structure, or whether EOR serves you better.

How PEO works in New Zealand, step by step

From assessing the fit to a compliant co-employment arrangement.

01 — Assess the fit

We map your structure, headcount, and how much control you want to keep, and tell you honestly whether PEO or EOR serves you better. No product push.

02 — Set up co-employment

If PEO fits, we place you with a vetted New Zealand partner and structure the shared employer arrangement correctly.

03 — Onboard your people

Compliant New Zealand employment terms under the Employment Relations Act 2000, with the administrative employer functions handled by the partner.

04 — Payroll & compliance

PAYE, ACC levies, KiwiSaver, and statutory filings handled every payday, while you keep day-to-day direction.

What PEO in New Zealand costs

As with EOR, two parts: the statutory cost of employment (the ACC Work Levy and KiwiSaver, rather than a single social-security tax) and the partner service fee.

ACC levy & KiwiSaver

The ACC Work Levy, rated to your industry classification and averaging NZD 0.69 per $100 of liable earnings, plus a minimum 3.5% KiwiSaver contribution, both administered under the shared employer arrangement.

Minimum wage (2026)

NZD 23.95 per hour for adult employees, applied consistently under the shared payroll arrangement.

Income tax (employee)

Five progressive bands from 10.5% to 39%, withheld at source as part of the shared payroll administration.

PEO partner fee

A service fee for the co-employment administration. Under a shared employer arrangement, New Zealand’s ACC classification and KiwiSaver settings still have to be administered correctly by someone. We benchmark across our vetted network, typically 15 to 25% below going direct.

Why arrange it through Bradford Jacobs

Why companies arrange New Zealand PEO through us rather than going direct to a single provider.

We tell you if PEO fits your needs

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

New Zealand’s ACC Work Levy is rated to your industry classification rather than a flat percentage, which makes it easy to misquote under a shared co-employment fee. We benchmark across our vetted network for rates typically 15 to 25% below going direct, and renegotiate for you at renewal.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades of placements

Two decades placing and managing employment arrangements across global markets, with the local knowledge that prevents costly New Zealand compliance mistakes.

  • Co-employment expertise
  • Honest fit advice
  • Right structure

We flex as your structure changes

PEO, EOR, and your own entity sit on a spectrum, and the right point shifts as you grow. We advise on the path and manage the moves, EOR to PEO, or either to your own New Zealand Limited Company, as your New Zealand presence develops.

  • EOR, PEO or entity
  • Transitions managed
  • Right fit as you grow

The employer duties a New Zealand PEO shoulders

Whichever model you use, the underlying New Zealand rules are the same. Under a PEO arrangement, the administrative employer functions are handled for you.

Working time, leave & contracts

Compliant New Zealand employment agreements and working-time terms (standard 40-hour week set in the agreement, no statutory overtime premium, minimum 4 weeks’ annual leave). PAYE, ACC levies, and KiwiSaver withheld and filed correctly. Statutory benefits applied properly, and notice and severance handled exactly as the agreement sets out.

Statutory protections & exits

Trial and probationary periods, and the personal grievance protections New Zealand employees carry under the Employment Relations Act 2000, since dismissal must be both substantively justified and procedurally fair, all handled under the shared arrangement. The value is the same as with EOR: the compliance is handled by people who do it daily. The difference is simply how much of the employer role you keep.

What a PEO arrangement covers

The co-employment administration covers all of this, under one transparent fee.

Compliant agreement

A compliant New Zealand employment agreement under the Employment Relations Act 2000, issued and maintained for you.

Payroll & filings

Payroll run on schedule, with PAYE, ACC levies, and KiwiSaver calculated, withheld, and filed every pay cycle.

Statutory benefits

All statutory benefits administered: annual leave, sick leave, and government-funded parental leave, alongside whatever notice and severance terms the agreement sets.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how PEO co-employment works in New Zealand.

What is the difference between PEO and EOR in New Zealand?

With an EOR, the partner is the sole legal employer of your New Zealand staff. With a PEO, you and the partner share the employer relationship, you keep more direct control, they handle the administration. In New Zealand, true co-employment is uncommon, so EOR is the usual route; PEO suits specific structures.

For most companies, EOR is simpler and faster, especially with no New Zealand entity. PEO fits when you want to share rather than outsource the employer role, or have a structure that calls for it. We assess your situation and recommend honestly.

It depends on the structure. Some co-employment arrangements assume or work alongside your own New Zealand entity. If you have no entity and want none, EOR is usually the cleaner route. We will confirm which applies to you.

The administrative employer functions, payroll, PAYE, ACC levies, KiwiSaver, statutory benefits, and statutory filings, are handled by the partner. We make sure the arrangement is structured so responsibilities are clear and New Zealand law is met.

The statutory employer cost (the ACC Work Levy, rated to your industry, plus a minimum 3.5% KiwiSaver contribution) plus a partner service fee for the co-employment administration. We benchmark across our network for pricing typically 15 to 25% below going direct.

Yes. These models sit on a spectrum and the right one changes as you grow. We advise on the path and manage transitions, EOR to PEO, or either to your own New Zealand Limited Company, as your New Zealand presence develops.

Not sure whether PEO or EOR is right for New Zealand?

Tell us your structure and headcount and we will give you an honest recommendation, usually within a day, plus pricing you will not get direct. No product push, just the right fit.

Tax and labour data verified July 2026 (Inland Revenue, ACC, Employment New Zealand). Figures change; we confirm the current position when we scope your hire.