Reminders and important dates

KiwiSaver changes take effect
1 April

A number of changes to KiwiSaver are being introduced from 1 April 2009. There are a few things employers will need to do to continue to meet their KiwiSaver obligations:

• Ensure your employer contribution is at least 2% from 1 April 2009. The compulsory employer contribution will increase from 1% to 2%, but won't increase further in future years.
• Reduce the amount that existing employees contribute to KiwiSaver to 2% if they ask you to. You can do this through your payroll provider or through your payroll system. Ask your employees for written confirmation. They can complete a new KiwiSaver deduction (KS2) form or write to you. There is no need to contact Inland Revenue.
• Deduct contributions at the default rate of 2% of gross pay for new employees automatically enrolled after 1 April 2009; if they don't tell you how much they want deducted from their pay. Your employees can choose to contribute 2%, 4% or 8% of their salaries or wages.
• Stop claiming the employer tax credit. You can continue to claim a tax credit for Employer monthly schedules (IR348/EMS) prior to April 2009. You can't claim a tax credit for EMS relating to periods from April 2009.
• Check if you’re liable for employer superannuation contribution tax (ESCT). After 1 April 2009, you’ll be liable to pay ESCT on any voluntary employer contributions you make. 
  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 (and who have been a member for 
    more than five years), or
  • to employees on a contribution holiday.

Find out more information about paying ESCT on KiwiSaver contributions.

• Ensure KiwiSaver deductions and employer contributions are paid in full. Any KiwiSaver deductions and contributions that aren't paid in full will attract penalties from 1 April 2009.

Date published: 19 Mar 2009

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