Skip to main content
Skip table of contents

Setting up non-KiwiSaver superannuation


This support note shows you how to set up superannuation where both the employer and employee contribute a percentage of the employee's earnings to a private superannuation scheme.

This scheme is not KiwiSaver related; if assistance is required to set up KiwiSaver contributions, please refer to our support note Adding a permanent employee into the KiwiSaver scheme.

To find out more about taxing superannuation contributions visit the IRD website.


To setup non-KiwiSaver superannuation

In the following example, both the employer and employee are making a 5% contribution to the super scheme. If the rate for each employee varies you will need to set up superannuation pay codes for each different rate.

  1. Go to the Maintenance command centre and click Maintain Pay Codes.
  2. Click New.
  3. As the Pay Code Type, select Post-Tax Deduction.
  4. Enter a Pay Code and Pay Code Description. Name it according to the rate that is going to be used, for example the code could be SUPER 5% with a relevant description.
  5. Click OK.
  6. Within the General tab enter the Default Pay Rate as 0.05000 and select the option to Print on pay slips as a percentage. See our example below.
  7. Click the Super tab select the option Employer superannuation codes based on this pay code.
  8. Enter applicable text in the Superannuation Fund Name and Contribution Formula fields. These are only text boxes and do not affect the calculation of superannuation in the software.
  9. Enter the percentage rate that is going to be calculated in Maximum % of employee gross earnings, for example 5.00, or if the employer is going to match the employee contribution, simply enter the % of Employee Contribution as 100.00000.
  10. Select the option Approved for the ESCT Exemption (if applicable) and the option to Include Employer Superannuation Contributions with Direct Credits if required. See our example below.
  11. Click the Other tab and ensure the option Use the employee's Total Gross Earnings as the Quantity is selected. If taxable allowances are also to be included in this calculation, select this option also.
  12. If the contributions are being passed directly to the super fund each pay, select the option to Include in Direct Credit Schedule and enter the appropriate bank account details. See our example below.
  13. Click Close.
  14. Go to the Maintenance command centre and click Maintain Employees.
  15. Click Select Employee and then choose the appropriate employee and click OK.
  16. Click the Pay Defaults/Totals tab.
  17. Click New and select the superannuation code created above, for example SUPER 5% and then click OK.
    The rate used in the Rate column will be automatically populated with the rate that was set earlier in the process when the pay code was created.
  18. Leave the Type column as Variable.
  19. Ensure the correct rate of ESCT is being applied - you can see this on the Employment Details tab in Maintain Employees.

The setup for your new superannuation pay code is now complete and pays can now be processed which will include these contributions.

When you process and finalise the next pay run, the Superannuation contributions will be deducted. Use the Employer Superannuation Period Report to show details of these deductions.

JavaScript errors detected

Please note, these errors can depend on your browser setup.

If this problem persists, please contact our support.