An employee can apply to Inland Revenue for a contributions holiday 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 contributions holiday savings suspension and when the contributions holiday suspension is due to expire. A new employee may also show you a contributions holiday savings suspension letter.
An employee can request contributions to be made during their contributions holidaysavings suspension.
|title||To record the contributions holidayKiwiSaver 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 contributions holidaySavings Suspension and enter an expiry date. Currently we can't enter dates beyond 2019. An update will be made available to fix this issue.
|title||To contribute to KiwiSaver during a contributions holidaysavings 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 Contributions HolidaySavings 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.
|UI Text Box|
You'll need to do this each time a pay is put through for the employee.
- Continue processing the pay as you would normally.
<h2><i class="fa fa-comments"></i> FAQs</h2><br>
|title||What happens at the end of the contributions holidaysavings suspension?|
Prior to the contributions holiday 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.