KiwiSaver savings suspensions

ANSWER ID:12215

An employee can apply to Inland Revenue for a savings suspension after they have been a member of KiwiSaver for a year, or earlier in exceptional circumstances. If Inland Revenue approves the application, they will send a letter to the employee and to their employers, stating that the employee is on a savings suspension and when the suspension is due to expire. A new employee may also show you a savings suspension letter.

An employee can request contributions to be made during their savings suspension.

To record the KiwiSaver savings suspension

Go to the Maintenance command centre and click Maintain Employees.
Click Select Employee.
Click the applicable employee then click OK.
Click the Compulsory Deductions tab.
Select the option On a Savings Suspension and enter an expiry date.

To contribute to KiwiSaver during a savings suspension

Go to the Maintenance command centre and click Maintain Employees.
Click Select Employee.
Click the applicable employee and click OK.
Click the Compulsory Deductions tab and deselect the option On a Savings Suspension.
Click Close.
Go to the Maintenance command centre and click Maintain Pay Codes.
Select the KIWI (KiwiSaver) pay code.
Click the General tab,
Select the option Allow rate to be modified when entering pay details as shown below.
Go to the Prepare Pays command centre and click Enter Pays.
Double-click the applicable employee.
In the Rate column for the KIWI pay code, change the rate to 0.00 as shown in the example below.

You'll need to do this each time a pay is put through for the employee.
Continue processing the pay as you would normally.

What happens at the end of the savings suspension?

Prior to the savings suspension expiry date, Inland Revenue will send you a letter reminding that you need to start making KiwiSaver deductions again from the next pay following the expiry date.