PayHero starts at $19 a month plus $4 per employee. For a team of five, you're paying $39 a month for software that handles IRD payday filing, leave management, and KiwiSaver calculations automatically. That's the pitch. But does it hold up?
This review covers what PayHero actually does well, where it falls short, and whether it's worth your money compared to Smartly and Employment Hero.
What PayHero is (and who built it)
PayHero is built by FlexiTime, a New Zealand software company founded in 2008. The product is exclusively designed for NZ businesses, which matters more than you'd think. Generic payroll tools often treat the Holidays Act 2003 as an afterthought. PayHero built the whole system around it.
More than 4,000 Kiwi businesses use it. It's not the biggest name in NZ payroll, but it has a loyal base, particularly among businesses with shift workers, casuals, or variable-hour staff.
PayHero pricing in NZD
All prices are NZD, excluding GST, and there's no lock-in contract.
| Plan | Base fee | Per employee/month |
|---|---|---|
| Origin (up to 10 employees) | $19 | $4 |
| Super | $39 | $5 |
| Universe | $59 | $6 |
A five-person business on Origin pays $39/month. Ten employees would be $59/month. The Origin cap is 10 employees, so once you grow past that, you're on Super at $39 + ($5 x employees).
PayHero bills at the start of the month for the previous month's usage. Inactive employees don't count, which is useful for seasonal businesses. You only pay for staff who appeared in a pay run or timesheet that month.
The 14-day free trial includes full feature access and no credit card. Your data carries over when you subscribe.
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PayHero also has a referral programme: refer another business and they get 3 months free (up to $500 value), while you receive a $200 reward as an account credit or Prezzy Card.
What PayHero does well
Holidays Act compliance that actually works
The Holidays Act 2003 is notoriously complicated for businesses with part-time or casual workers. Most payroll software handles it poorly. PayHero stores leave balances in weeks (not hours or days) and reviews each employee's actual work patterns when calculating leave entitlements.
This approach is directly in line with MBIE's guidance on the Act. It's the reason accountants recommend PayHero specifically for hospitality, retail, and health businesses where shift patterns vary constantly.
Direct IRD integration
Payday filing is automated. PayHero connects directly to myIR and sends employment information to Inland Revenue every time you run payroll. No manual exports, no separate filing steps. KiwiSaver deductions and ACC levies are calculated automatically.
Xero integration
PayHero connects natively with Xero, assigning payroll costs to general ledger accounts and tracking categories. If your accountant is already in Xero, this is clean and low-friction. It's a genuine integration, not a basic CSV export.
Timesheets and the Droppah add-on
The employee mobile app covers timesheets, payslip access, leave requests, and expense claims. The app is straightforward and the leave approval workflow is simple for managers.
For shift-based businesses, PayHero integrates with Droppah, FlexiTime's rostering software. Droppah is free for up to 10 employees on the rostering features, which makes the PayHero + Droppah combination genuinely competitive for small retail or hospitality teams.
Where PayHero falls short
Phone support is not on the cheapest plan. Origin (the entry plan) is email support only. Phone support starts at Super ($39 base). For a small business running payroll for the first time, this is a real limitation if something goes wrong.
NZ-only. PayHero can't pay international contractors or employees in other countries. If you have anyone on the payroll outside NZ, you'll need a separate solution.
The Universe plan gets pricey fast. At $59 base + $6/employee, a 20-person team pays $179/month. That's competitive with Employment Hero's payroll-only pricing, but less competitive once you start adding HR tools.
PayHero vs Smartly vs Employment Hero
These are the three most common NZ payroll options for SMBs.
| PayHero | Smartly | Employment Hero | |
|---|---|---|---|
| NZ Holidays Act compliance | Strong | Strong | Strong |
| Starting cost | $19 + $4/ee | ~$40 + $2/ee/pay period | Varies by plan |
| HR tools included | Minimal | Minimal | Full suite |
| Phone support | Super plan+ | Yes | Varies |
| Free trial | 14 days | Yes | Yes |
| Best for | Variable-hour staff | Simple payroll, low cost | HR + payroll together |
Smartly starts at $40/month base + $2 per employee per pay period. If you pay weekly, that $2 adds up faster than PayHero's flat monthly rate. Smartly suits businesses with straightforward, consistent payroll and minimal complexity.
Employment Hero (which includes the former KeyPay payroll engine) is a full HR and payroll platform. It handles onboarding, employment agreements, performance reviews, and benefits, not just payroll. The tradeoff is cost and complexity. If you have five employees and just need compliant payroll, Employment Hero is probably more than you need. If you're growing fast and want HR and payroll in one system, it's worth comparing directly.
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Employment Hero has a referral partner programme for NZ businesses at employmenthero.com/nz/partner-network/referral-partner-program. Referral partners receive discounts on their own subscriptions.
Who should use PayHero
PayHero is the right call if:
- You have part-time, casual, or shift workers and Holidays Act compliance keeps you up at night
- You use Xero and want payroll to connect cleanly
- You're under 10 employees and want a transparent flat rate
- You need timesheets and don't want to pay extra for rostering
Look elsewhere if:
- You need HR tools beyond payroll (onboarding, performance, benefits)
- You want phone support from day one without paying more
- You're paying staff in multiple countries
The verdict
PayHero is a solid, no-frills payroll system built specifically for the NZ market. The Holidays Act compliance is the strongest argument for it. If your business has variable-hour staff and you've been burned by incorrect leave calculations before, PayHero's architecture directly addresses that problem.
At $19 + $4 per employee, the Origin plan is honest value for micro-businesses. The 14-day free trial includes a first-pay walkthrough, which means you can test the whole workflow before committing.
It won't replace an HR system. It won't pay international staff. But for NZ payroll, done right, it's one of the more reliable options on the market.
Start a 14-day free trial at payhero.co.nz. No credit card required.
