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  • Adjusting the KiwiSaver contribution rate

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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).

Employees can choose a contribution rate of 4% or 8% of their gross salary or wages.

The Employers Contribution will be set at the required compulsory contribution rate of 3%.

To adjust the employee KiwiSaver deduction 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 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
    Image 
To adjust the employer KiwiSaver deduction 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. See our example below.
    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