Employee Kiwisaver contributions appearing as underpaid (New Zealand)

Kiwisaver is calculated based on what is paid to employees in their pays and the contribution percentage specified in the employee's setup.

Kiwisaver contributions can be under calculated for several different reasons, such as the setup of any allowances being paid, the Override fields have been ticked or they are in the wrong Group.

When Kiwisaver contributions do not appear to have been calculated based on the contribution percentage of the gross, such as in the example below, Kiwisaver can be undervalued.
For an employee contributing to Kiwisaver, contributions for a period are under what is expected – e.g. $500 week gross, + $100 in allowances, 3% employee contribution, but instead of $18 (3% of $600), the contribution is $15.

First step is to check if the employees are receiving any allowances. In this example, the employee has a taxable allowance of $100 – but have a look at the setup of the allowance:

This taxable allowance should have a tick in Add to Gross for Kiwisaver if it is to be included in the Kiwisaver calculation.

The end result of this

If we print a Kiwisaver report for the period and verify the employee is on the right contribution percentage, we get:

Now check this against a paysheet:

3% of $500 should be $15. Check the setup of the allowance in the pay, in this case the On-Site bonus allowance.

If all allowances are setup correctly

Check to see if there is an override in the employee’s Kiwisaver.

If all allowances are setup correctly and there are no ticks in override

Ensure that the employee is in the correct group – i.e. if they had specified 4% on their KS-12 form but the group assigned to them is a 3% contribution group then their contributions will be incorrect.

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You can also find more help resources on the MYOB Exo Employer Services Education Centre for Australia or New Zealand.