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KiwiSaver is a savings plan to help people set up for retirement. Members pay a percentage of their wage into the fund each pay cycle, and employers contribute a percentage as well.

The plan is voluntary, but new employees who are not already members are automatically enrolled and must opt out if they don’t want to participate.

Employers have certain obligations under law to set up KiwiSaver for their new employees, give their employees information about the program, and pay into the fund. Inland Revenue explains these obligations.

 

Automatic Enrolment

Every New Zealand citizen or permanent resident who starts a new job and is not already a member is automatically enrolled in the scheme, unless they are under 18 or over 65, temporary or casual staff, or subject to other exemptions. Inland Revenue has a list of exemptions for staff.

You will need to register your employee with KiwiSaver either by submitting a KiwiSaver employee details form (KS1), or by registering them online.

You will also need to check that Ace Payroll has automatically set your new employee as Enrolled, and adjust the relevant information. You can check this using KiwiSaver employee setup.


Contribution Rates

Your employee must contribute a minimum of 3% of their gross wage, but they can choose to contribute 4% or 8%. They can do this by giving their employer a KiwiSaver deduction form (KS2).

As an employer, you must also contribute a minimum payment equal to 3% of your employee’s gross wage.

See KiwiSaver contribution rates for instructions on how to change these settings in Ace Payroll.


Opting Out

After automatic enrollment an employee can opt out by giving you an KiwiSaver opt-out request form (KS10), or by giving the same form to Inland Revenue.

Employees have 8 weeks to decide if they want to stay with KiwiSaver, and can only opt out after two weeks has passed but before 8 weeks has passed (on or after day 14, and on or before day 56).

See KiwiSaver opting out for instructions on processing an employee who is opting out.


Opting In

Anyone who is not a member of KiwiSaver can opt into the program by giving their employer a KiwiSaver deduction form (KS2).

Once they have opted in they cannot opt out. Only member who were enrolled automatically have the ability to opt out.

See KiwiSaver opting in for instructions on processing an employee who is opting in.


Contributions Holiday

KiwiSaver members can take a contributions holiday - a break from paying contributions into their KiwiSaver account.

Members can apply for a contributions holiday after they have been a member of KiwiSaver for 12 months. In some circumstances they can apply for an early contributions holiday. A contributions holiday can last from 3 months to 5 years.

 

Scheme providers

As an employer, you do not need to do anything if an employee chooses their own scheme provider. Your employee will contact the provider directly, and the provider will contact Inland Revenue.