Setting up employees for KiwiSaver

Whether you're setting up KiwiSaver for a new employee or an existing one, each employee's scenario will have different requirements. This page describes these scenarios and how to select the right settings for each one. You also need to set up your employer contribution settings for each employee.

Employee KiwiSaver settings

New employees

1. Go to the Pay Details screen (MPPP2310).

2. In the Employee ID field, select the employee whose KiwiSaver you want to set up.

3. On the KiwiSaver tab, add a new row by clicking the + button.

4. The Date of Change will be the system business date (change this if necessary).

5. Under KiwiSaver Eligibility, select “New Employee”

6. The other settings you need to select depend on the employee's specific scenario.

   Settings for different scenario

   Situation description	KiwiSaver tab setting
   	KiwiSaver Eligibility	KiwiSaver Status	Opted out of KiwiSaver	Date Opted out	Late Opt-out Reason
   New employee auto-enrolled into KiwiSaver by the employer The employee just started employment with the company and has never been a member of KiwiSaver before starting with this employer. The employee is eligible to enrol in KiwiSaver and: is between the ages of 18 and 65 the job is full time or permanent part-time is on a contract of at least 28 days is a casual agricultural worker for more than 3 months	New Employee	Auto enrol	unticked	-	-
   New Employee opting out of KiwiSaver The employee is eligible to be auto-enrolled into KiwiSaver by the employer, but does not want to be a KiwiSaver member, after 14+ days opts out, i.e.: a new employee whose first pay is completed 14+ days after employment start date the employee is choosing to opt-out of KiwiSaver	New Employee	Auto enrol	ticked	Date of opting out	-
   New Employee who already belongs to KiwiSaver and wants to continue The employee just started employment with the company The employee is an existing KS contributor and is over 65	New Employee	Existing KS member	unticked	-	-
   New employee who is not eligible for KiwiSaver and is not an existing KiwiSaver member	New Employee	Not eligible	unticked	-
   New employee who is already enrolled in KiwiSaver and wants to opt out The employee is over 65 and wants to opt out of KiwiSaver	New Employee	Not eligible	unticked	-	-
   New employee voluntary oping in to KiwiSaver The employee just started employment with the company The employee is over 65 and wants to voluntarily join KS This scenario applies to employees over 65+, casual/temporary, or anyone eligible for KiwiSaver but not automatically enrolled by the employer.	New Employee	Opting in	unticked	-	-
   New employee (non-casual) who is not a KiwiSaver contributor The employee just started employment with the company The employee is over 65 and not auto-enrolled The employee did not voluntarily opt-in	New Employee	Not eligible	unticked	-	-
   New casual/temporary employee who is in their first 28 days of employment The employee just started employment with the company The employee is a casual/temporary employee The employee did not voluntarily opt-in	New Employee	Casual / temp	unticked	-	-
   New Employee who is a KiwiSaver contributor, currently on Savings Suspension The employee has existing IR notification of Savings suspension and has shown the new employer	New Employee	Existing KS member	unticked	-	-

7. If the employee will be receiving income that is exempt from KiwiSaver, under Income Exempt from KiwiSaver, select the reason for the exemption. If more than one reason applies, select the reason that accounts for the greater part of the employee’s pay. Choose from:

   • Board-lodging

   • Taxable allowances accommodation

   • Voluntary Bonding Scheme

   • Retiring allowance

   • Overpayment of employer’s super cash contribution

   • Honoraria payments

   

   The other columns will not be editable for a new employee.

8. On the form toolbar, click the Save icon (:ADV_Save:).

Existing employees

The Pay Details KiwiSaver tab must also be updated in the following scenarios for existing employees:

Opting in to KiwiSaver:

1. Add a new row by clicking the + button.

2. The Date of Change will be the system business date (change this if necessary).

3. Under KiwiSaver Eligibility, select “Existing employee opt-in”.

Opting out of KiwiSaver:

1. Add a new row by clicking the + button.

2. The Date of Change will be the system business date; this must be the date the employee signed/provided the Opt out form.

3. If the new employee has already been reported, then leave KiwiSaver Eligibility and KiwiSaver Status blank.

4. Under Opted out of KiwiSaver, tick the checkbox

5. If the Date of Change is past the standard (employment start date plus 56 days), a Late Opt-out reason must be selected:

   • Employer didn’t provide info pack by start date = 7 days

   • IRD didn’t send investment statement upon allocation to a default scheme

   • Employer didn’t provide investment statement for default scheme

   • Events outside of control prevented submission of opt-out application within 56 days

   • Didn’t meet criteria to join KS

   • Incorrectly enrolled under age 18.

   • Other

6. If the Late Opt-out reason is “Other”, a description must be entered under Other description (up to 500 characters).

Casual employee converted to permanent employee after 28 days, not previously enrolled in KiwiSaver:

1. Add a new row by clicking the + button.

2. The Date of Change will be the system business date (change this if necessary).

3. Under KiwiSaver Eligibility, select “Existing employee auto enrol”.

ND tax code with no IRD number, replaced by a different tax code and an IRD number:

1. If an employee has been reported with no IRD number, and the IRD number is subsequently provided, the Pay Details Taxation tab will display a message advising that this change will be reported in Payday filing.

2. The Employee Details file will include two entries:

   • Tax code ND with no IRD number, the date of the change will be reported as the IRD Update Date.

   • New tax code with IRD number, Start Date will report the employment start date.

Employee Transfer:

If the employee is being transferred from one branch to another where the branch IRD number is different, then this must be reported in payday filing as if the employee is departing and a new employee. This must be done manually in myIR.

Scenarios that don’t require changes

Employer super contributions

For more information, see these IRD resources:

• Deduct ESCT from each employer contribution

• Deduct ESCT under the PAYE rules

• Page 16 of IRD Employer’s guide – IR335.

Set employer super contributions

1. Go to the Pay Details screen (MPPP2310).

2. In the Employee ID field, select the employee you want to set up employer super contributions for.

3. On the Taxation tab, choose the Employer Super Contribution settings:

   1. Taxation Method – Select either ESCT or PAYE. All employer contributions paid to a superannuation fund, including KiwiSaver schemes and complying funds, are liable for ESCT (employer superannuation contribution tax). The exception to this is if the employee and employer have agreed to treat some or all of the employer contribution as salary or wages under the PAYE rules.

      

   2. ESCT Rate – If you selected ESCT as the Taxation Method, you need to select a rate. The ESCT rate is based on the employee's salary or wages plus gross superannuation employer contributions received in the previous tax year, 1 April to 31 March. For more information, see page 19 of IRD Employer’s guide – IR335.

      

   3. Super Contribution is Grossed Up – Sometimes, an employer may be "locked in" to an employment agreement where they contribute a set percentage of their employee's salary. In this case, you might need to gross up the employer contribution so the employee receives their full entitlement.
      If you select this checkbox, the net employer contribution is the 3% employer contribution.
      If you don't select this checkbox, the net employer contribution is 3% employer contribution minus ESCT / PAYE on Employer Super.

      

4. On the form toolbar, click the Save icon (:ADV_Save:).

Example employer super contributions