Adjusting the KiwiSaver contribution rate
ANSWER ID:12189
The default KiwiSaver employee contribution rate is 3% of an employee's gross pay, but they can choose to contribute a higher rate of 4, 6, 8 or 10%. How much KiwiSaver can be contributed?
The default employer contribution rate is also 3%, but employers can choose to contribute more if they want to.
Here's how to adjust KiwiSaver contributions in MYOB Payroll.
- Go to the Maintenance command centre and click Maintain Employees.
- Click Select Employee.
- Click the Pay Defaults/Totals tab.
- For the KIWI (KiwiSaver) pay code, enter the new rate in the Rate column.
In this example the rate has been changed to 4%, which has been entered as 0.04000
- Go to the Maintenance command centre and click Maintain Employees.
- Click Select Employee.
- Click the Compulsory Deductions tab and alter the rate as required.
Employer Superannuation Contributions Tax
- From 1 April 2012 the Employer Superannuation Contributions Tax (ESCT) exemption no longer applies and ESCT needs to be calculated on the entire employer contribution.
- Any voluntary employer contributions are also subject to ESCT. Voluntary employer contributions include any contributions you make:
- over and above the compulsory employer contribution rate
- to employees aged under 18 or over 65 years of age (and who have been member for more than five years)
- to employees on a KiwiSaver savings suspension, or
- to employees who are on leave without pay.