involved in setting up the system to start with but you may be able to get help with this.  I think that you would be amazed at how easy your payroll and tax compliance process would become.  Tax compliance, Kiwsaver, Holidays Act compliance, student loans, child support, allowances, and the list goes on, are a minefield to navigate in this day and age.  I have spent many years manually processing payroll and many years using various payroll software so have a good comparison.  Even if I had only 2 staff I would still  use purpose software! Our business is even smaller.....1 employee.  My singular attempt to file online and pay by internet banking resulted in our employee's student loan payments not being paid and he was showing as being in arrears.  I have gone back to paper filing and paying by cheque for ALL IRD payments We prefer to be in control of processes that we are ultimately responsible for ie filing of tax returns such as PAYE and GST.  For this reason we prefer not to use online software such as Smartpayroll, to manage or complete this process for our business.  I also have to complete all of our accounting reconciliations at year end for audit so I like to know what's actually happened and not find errors or whatever 6 months down the track.  Our business uses IMS payroll software to manage the payroll process, which takes care of all the tax deduction calculations, kiwisaver, all types of