Child pages
  • Adjusting the KiwiSaver contribution rate


 

 

ANSWER ID:12189

The default KiwiSaver employee contribution rate is 3% of an employee's gross pay, but they can choose to contribute a higher rate of 4, 6, 8 or 10%. How much KiwiSaver can be contributed?

The default employer contribution rate is also 3%, but employers can choose to contribute more if they want to.

Here's how to adjust KiwiSaver contributions in MYOB Payroll.

To adjust the employee KiwiSaver contribution rate:
  1. Go to the Maintenance command centre and click Maintain Employees.
  2. Click Select Employee.
  3. Click the Pay Defaults/Totals tab.
  4. For the KIWI (KiwiSaver) pay code, enter the new rate in the Rate column.
    In this example the rate has been changed to 4%, which has been entered as 0.04000
    Image 
To adjust the employer KiwiSaver contribution rate:
  1. Go to the Maintenance command centre and click Maintain Employees.
  2. Click Select Employee.
  3. Click the Compulsory Deductions tab and alter the rate as required.
    Image 

Employer Superannuation Contributions Tax

  • From 1 April 2012 the Employer Superannuation Contributions Tax (ESCT) exemption no longer applies and ESCT needs to be calculated on the entire employer contribution.
  • Any voluntary employer contributions are also subject to ESCT. Voluntary employer contributions include any contributions you make:
    • over and above the compulsory employer contribution rate
    • to employees aged under 18 or over 65 years of age (and who have been member for more than five years)
    • to employees on a contribution holiday, or
    • to employees who are on leave without pay.