Setting up KiwiSaver groups (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. MYOB Exo Payroll can handle the KiwiSaver contributions for both employees and employers.

KiwiSaver contributions are managed through KiwiSaver Groups. The KiwiSaver Groups screen controls the rate of contribution to be applied for both the employee's and the employer's contributions. Different groups should be setup to handle the different combinations of allowed contributions.

Understanding the KiwiSaver group settings

Setting name	Description
Assign new employees to this group	Save from the Group when all settings have been completed.
Employee contribution	From 1 April 2019, employees can contribute at 3%, 4%, 6%, 8% or 10% of gross salary or wages. The contribution comes out of the employee's pay, after PAYE has been deducted and will appear on the KiwiSaver, IR348 reports, and Payday Filing reports (used from 1 April 2019 onwards) as a form of deduction. Note: Prior to 1 April 2013, Employees' Contribution rates were 2%, 4% or 8%, with 3% added from then onwards.
Employer contribution	From 1 April 2008, the KiwiSaver Compulsory Employer Contribution came into effect. This contribution was capped at 2% as of 1 April 2009. From 1 April 2013 the minimum Employer Contribution increased to 3%. Employers can still contribute voluntarily at a higher rate of employees' gross salary or wages. All of the Employer Contribution value is liable for Employer Superannuation Contribution Tax (ESCT). Prior to 1 April 2012, if an employer contributed at a higher rate than 2%, the difference was liable for Employer Superannuation Contribution Tax (ESCT).
Cost Centre	If the cost centre field is visible, MYOB Exo Payroll will cost the Employer contribution to its own specific cost centre. Enter a cost centre code here to cost the Employer contribution to that specific cost centre or, leave the field blank in order to cost to the employee's default cost centre.
Gross Up Employer Contribution	Employer contributions greater than 2% are liable for Employer Superannuation Contribution Tax (ESCT). If employers are "locked in" to an agreement with an employee for a set percentage of employer contributions, in order to meet the terms of that agreement the amount of employer contributions may need to be grossed-up to ensure that the employee receives their full entitlement. Ticking this option means that the employer contribution is grossed-up to offset ESCT.
Total contribution	This value is automatically calculated by the system and is derived from the sum of the Employee's contribution and the Employer's contribution.

To set up KiwiSaver groups for your payroll company

Select KiwiSaver Groups from the Maintenance menu. A list will appear of all Kiwi Saver Groups that currently exist.
Press F4 or click Add to add a new group.
Assign a code, which can be alpha-numeric, then enter a relevant name for this Group.
Save from the Group when all settings have been completed.
Once the group has been setup it can now be assigned to any employees that are contributing to KiwiSaver.
This is done through the KiwiSaver button in the employee's Standard Pay screen.

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.