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ANSWER ID:22830

Employees under 18 or over 65 are not automatically opted into enrolled in KiwiSaver, but they can choose to be opted opt into KiwiSaver. If they do, the employer is not required to make compulsory employer contributions.If the employer chooses to contribute, their contribution will be treated entirely as voluntary and therefore subject to Employer Superannuation Contributions Tax (ESCT), but may choose to contribute anyway.

The employer will be notified by the IRD Inland Revenue if an employee Under 18 becomes a member of KiwiSaver.

For full details on KiwiSaver for employers please refer to the following information on the IRD Inland Revenue website.

Taxing superannuation fund contributions

KiwiSaver for employers

 

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titleTo opt an employee into KiwiSaver
  1. Go to the Maintenance command centre and click Maintain Employees.
  2. Click Select Employee.
  3. Click the applicable employee then click OK.
  4. Click the Personal Details tab.
  5. Enter the employee's details as you would normally, ensuring that a Birth Date for the employee is entered.
  6. Click the Leave details tab.
  7. Enter the employee's Normal days/week and Normal hours/day to establish Normal Hours per week.
  8. Click the Compulsory Deductions tab.
  9. Select the option Eligible for KiwiSaver.
  10. At the message regarding the employee being under 18, click Yes.
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  11. Continue processing your pays as normal.
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titleTo opt an employee out of Kiwisaver
  1. Go to the Maintenance command centre and click Maintain Employees.
  2. Click Select Employee.
  3. Click the employee who has opted is opteing out then click OK.
  4. Click the Personal Details tab.
  5. Deselect the option Entitled to reside in NZ indefinitely. This will result in the KIWI Pay Code in the Pay Defaults/Totals tab being changed to a Type of Old and KiwiSaver deductions will no longer be taken.
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Payroll user guide

Opting out of KiwiSaver after 8 weeks

Opting out an employee from KiwiSaver before their first pay