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If your employees are KiwiSaver or complying fund members, your compulsory employer contribution (CEC) is set at 3%. It's up to you if you want to make voluntary contributions above the 3% minimum CEC.
If your contribution to a complying fund is less than 3%, you must pay the difference as a CEC to your employees KiwiSaver account.
When you must pay compulsory employer contributions
You must pay CECs if your employee:
- is aged 18 and over
- is aged under 65 or hasn't been a KiwiSaver or complying fund member for five years (whichever date is later)
- has KiwiSaver or complying fund member contributions deducted from their salary or wages, and
- isn't a member of a defined benefit scheme.
Agreed employment packages
If you and your employee have agreed to a total remuneration package, you must pay CEC on top of the package if not already included. Your employee’s take-home pay shouldn't be less because of the CEC.
Alternatively, you can negotiate a salary package which specifically includes a CEC component.
You must pay CECs on backdated payments of salry or wages which member contributions are deducted from.
Starting and stopping CECs
For new employees automatically enrolled into KiwiSaver, you pay CECs from their first pay.
For existing employees, you pay CECs from their first pay after being notified they've joind KiwiSaver or a complying fund. You'll be notified by the employee, or us.
You can stop contributing if the employee takes a contributions holiday or when we advise you to stop.
When an employee reaches the age of eligibility for NZ Super
You don't have to pay CECs when an employee reaches the age of entitlement for New Zealand Superannuation. You can keep paying CECs if you have an agreement with your employee or you choose to voluntarily carry on paying.
Filing and paying your CECs
You include your net CECs on your employer returns and pay them as part of your total employer deductions payment for that period.
Before you add your CECs to your employer returns you need to deduct employer superannuation contribution tax (ESCT). You then add the net CEC and the ESCT amounts to your employer returns.
If your employee is a member of a complying fund, don't pay their member deductions or your CECs to us. Pay them directly to their scheme provider.
We hold your employee's member contributions and your CECs until your employer returns and payments are processed, then we pass them on to the provider(s). We pay interest on CECs from the date we receive your payment.
You can file your employer returns and make your payment through your myIR account.
We'll refund your CECs when an employee opts out
If a new employee opts out of KiwiSaver, we'll refund your CECs automatically. You can request a refund of any ESCT on the contributions.