Making payments to a private superannuation scheme

Before 2007, a "Private" or "Company" superannuation scheme was the only saving option specifically intended to supplement the "NZ Super" state pension.

From 2007 onwards, the New Zealand Government encouraged residents to use an approved "KiwiSaver" scheme for retirement savings. KiwiSaver offers financial incentives as well as simplified administration. Contributions are managed automatically as part of an employer's PAYE payment and reporting to the Inland Revenue Department.

Employers might still have private or company schemes running alongside KiwiSaver, and EXO Payroll can support these. Setup and processes differ from KiwiSaver, and are explained in the following section.

Managing contributions to a non-KiwiSaver superannuation scheme

Employee and Employer contributions are each specified as Deductions, created via the Maintenance menu, then added to an employee's Standard Pay.

Deduction settings control the calculation of contribution values. The "Type" must be set to "Employee Super" or "Employer Super" respectively.

Both deduction types have a "Complying superannuation fund" checkbox. Complying means the fund has been approved by the FMA as equivalent to KiwiSaver in certain respects (the fund provider can confirm if this applies). Both Employee and Employer deductions should have the same setting.

On IR 345 reports (and for "Private" schemes, complying or not), ESCT is deducted from Employer contributions and itemised exactly as happens with KiwiSaver. IR348 reports show only Kiwisaver and do not itemise ESCT. For Payday Filing (required from 1Apr19 onwards), files include ESCT deducted from both Kiwisaver and "Private" schemes.

Contributions must be transferred to the Superannuation Provider manually, net of ESCT. This could be one "bulk" payment, at an agreed frequency (say monthly). NB - deductions have an option to add "Direct Credit" details, but this must never be used for Employer Super contributions (using direct credit will transfer the entire amount with no ESCT removed).

Use the "Superannuation Report" to show actual contributions and ESCT for the required period and date-range. This has options to include Superannuation, or KiwiSaver, or both.

The same report shows contributions per employee, and can be used by the Provider to allocate funds.

The "Payslip Custom" report includes Employer contributions (not shown on earlier Payslip types).

The General Ledger report does not include Employer Contributions. The Pay Sheet report shows ESCT for Kiwisaver, but not for "Private" schemes.

Need more help? You can open the online help by pressing F1 on your keyboard while in your software.

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