- Created by BrianQ, last modified by admin on Nov 24, 2015
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https://help.myob.com/wiki/x/wJei
ANSWER ID:12189
If an employee is eligible to join KiwiSaver and Normal Hours / Days per week have been entered in the employees Leave Details tab, the KIWI (KiwiSaver) pay code will be automatically added to their pay defaults with a default rate of 3% (as of 1 April 2013).
The Employers Contribution will be set at the required compulsory contribution rate of 3%.
Employees can choose a contribution rate of 4% or 8% of their gross salary or wages.
- Go to the Maintenance command centre and click Maintain Employees.
- Click Select Employee.
- Click the Pay Defaults/Totals tab.
- For the KIWI (KiwiSaver) pay code, enter the applicable rate in the Rate column as shown below in this example where the Rate has been changed to 4% which has been entered as 0.04000
- To adjust the Employer Contribution (funded by the employer) click the Compulsory Deductions tab and alter the rate as required. See our example below.
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