17/03/2026
Inland Revenue does not often issue Revenue Alerts about payroll.
They just did.
RA 26/01, issued yesterday, is a direct warning to employers: if you are deducting PAYE from your team’s wages and not paying it through to Inland Revenue, you are committing a criminal offence.
The penalties are not small. Up to five years in prison. Up to $50,000 in fines. And if you are a director, you can be personally prosecuted for the company’s failure.
This is not new legislation. These penalties have always existed. What is new is Inland Revenue making it very clear they intend to enforce them.
If payroll in your business is run by someone who "just handles it" without documented processes, proper oversight, or compliance checks, this should be a priority conversation. Not next month. Now.
Payroll is not admin. It is one of the highest-risk compliance obligations a business carries. Treat it that way.
Full Revenue Alert:https://www.taxtechnical.ird.govt.nz/-/media/project/ir/tt/pdfs/revenue-alerts/2026/ra-26-01.pdf