Payroll assumes all new employees are eligible for KiwiSaver. As described below, by going into Maintain Employees, employer deductions are entered on the Compulsory Deductions tab, and the employee deduction amount is entered on the Pay Defaults/Totals tab. For information on deduction amounts, see the IRD website.
If your employee is casual and does not have normal days or hours, see KiwiSaver for casual or temporary employees.
Changing the KiwiSaver rate
If you want to increase your employer contribution, or your employee wants to increase their contribution, you can adjust the KiwiSaver contribution rate.
- Add the employee into Payroll as usual. Refer to the user guide for details.
- Go to the Maintenance command centre and click Maintain Employees.
- Click Select Employee, choose the relevant employee, then click OK.
Click the Personal Details tab and ensure the employee's birth date is entered (if provided).
Payroll will automatically assume the employee is Entitled to reside in NZ indefinitely as shown in our example below. The employee must be entitled to reside in NZ to join KiwiSaver. Check with the IRD for clarification if you're unsure.
To enter the birth date, exclude the century when you type in the year. For example, for someone born on January 1, 1990, type:
The box will automatically format this date to 01/01/1990.
- Click the Leave Details tab and enter the Normal days / week and Normal hours / day as shown in the following example.
- Click the Compulsory Deductions tab and ensure the option Eligible for KiwiSaver is selected as shown in our example below. This will automatically set the Employer Contribution at the applicable rate and the employee's deduction at the applicable rate in their KIWI (KiwiSaver) Pay Default. For clarification on the applicable employee and employer contribution rates, visit the IRD website.
Your employee is now set up automatically to contribute to KiwiSaver. You can check this by clicking the Pay Defaults/Totals tab.