Opting out of Kiwisaver (New Zealand)
KiwiSaver is part of a government initiative designed to increase the level of savings by New Zealand households and to support New Zealanders in their retirement. New employees may decide to opt out of the KiwiSaver plan. This article deals with how to address the opting out in MYOB Exo Payroll.
By default, new employees are automatically opted into KiwiSaver. The employee will need to be opted into KiwiSaver for the first two weeks. Following that the employee can opt out of KiwiSaver between the two to eight week period. The employee will need to fill out the KiwiSaver opt out form in order to opt out.
- If an employee opts out , remove the tick from the ‘Make KiwiSaver contributions’ tickbox found in the KiwiSaver screen of the employees Standard Pay. This will stop taking out the KiwiSaver contributions.
- Tick the ‘Opt out new employee' tickbox and enter the date that the employee signed the Opt out notice in the ‘Opt out notice signed’ field. This will advise IRD that the employee is opting out of KiwiSaver.
Complete the ‘Refund bank account’ and 'Refund account name’ fields with the appropriate details for the employee so that IRD can repay the contributions to the employee.
To advise IRD of the employees who have opted out of Kiwisaver and the employees bank account details for the repayment of Kiwisaver Contributions, run the 'KiwiSaver Employment Details' report and send that information to IRD such as via a file.
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.