Employees who start a new job and meet the criteria for automatic enrolment must be enrolled in KiwiSaver, unless you offer an approved alternative superannuation scheme. You must provide KiwiSaver information to all new employees and to any existing employees who ask for the information.
If employees ask for advice
You should not give financial advice to employees. Instead, refer them to the Commission for Financial Literacy and Retirement Income's Sorted website or encourage them to see an independent advisor. Providing general savings or KiwiSaver information does not constitute giving financial advice.
Within seven days
Start the automatic enrolment process by checking whether the new employee is eligible to join KiwiSaver. Give them a:
- Your introduction to KiwiSaver - employee information (KS3) factsheet
- KiwiSaver deduction form (KS2) (which they can use to let you know whether they want 3%, 4% or 8% of their pay deducted), and
- New employee opt-out request (KS10) form.
If they don't complete the form, make deductions at the default rate of 3%. You should keep the KiwiSaver deduction form (KS2) for your records.
If you have an employer-chosen KiwiSaver scheme you must advise new employees in writing that you have chosen a scheme that they will be allocated to unless they choose their own KiwiSaver scheme. You must also give them your scheme's investment statement.
You'll need to send us the full names, IRD numbers and addresses of any new employees you're automatically enrolling, using the KiwiSaver employee details (KS1) form. You can supply this information online if you're registered for our ir-File service.
You still need to send this information to us if the employee intends to opt out.
From their first pay
You must make KiwiSaver deductions from all payments of salary and wages after the employee starts work until:
- an opt-out notice takes effect
- the employee no longer receives salary or wages
- a contributions holiday is granted
- you are notified by Inland Revenue to stop deducting, or
- the employee becomes eligible to and withdraws their savings.
Compulsory employer contributions
If you have employees who belong to a superannuation scheme (eg, KiwiSaver) you’ll usually pay employer cash contributions to the scheme. Employer superannuation contribution tax (ESCT) is a tax deducted from the employer superannuation cash contributions you pay into the employee’s KiwiSaver or superannuation account.
The exception to this is if you and your employee have agreed to treat some or all of your employer contribution as salary or wages under the PAYE rules.
If you’re required to make employer contributions to your employee’s KiwiSaver account or complying fund, the minimum amount you’ll need to contribute is 3% of your employee’s salary or wage.
With your next employer monthly schedule (EMS) or earlier
Let us know the full names, IRD numbers and addresses of new employees who should be automatically enrolled, using the KiwiSaver employee details (KS1) form. You can supply this information manually or complete it online if you are registered to use our ir-File service.
You only need to give us the information the employee gives you. It is not your responsibility if an employee chooses not to provide information for privacy or other reasons.
You must provide enrolment information no later than the date your next EMS is due. There is no need to notify us if an employee is not eligible for automatic enrolment.
New employees who are existing members
A new employee who is an existing KiwiSaver member must give you either:
- a KiwiSaver deduction form (KS2)
This form lets you know whether the employee wants deductions made at the rate of 3%, 4% or 8% (begin deductions at the default rate of 3% from 1 April 2013 if they don't complete a form), or
- a valid KiwiSaver contributions holiday request (KS6)
We will notify you if deductions do not begin for an existing member and the member is not on a contributions holiday. If no contribution rate is specified, from 1 April 2013 the rate is 3% of each pay. There is no need for you to backdate contributions, but you could be penalised if you don't start making deductions after you have been advised.
You do not need to send Inland Revenue a KiwiSaver employee details form (KS1) for new employees who are existing KiwiSaver members. However there are special requirements if the new employee has more than one job.
Unsure about the age of your employee?
Employees can rightfully refuse to give you their date of birth, but you won't be penalised if an employee refuses to provide you with information or provides you with false information.
If the employee believes they are not eligible to be automatically enrolled but won’t tell you their date of birth, get the employee to complete a KS 2 form and indicate in section C that their deductions should be nil.
If you don't make any KiwiSaver deductions for an employee in this situation we'll contact you after receiving your monthly schedules (EMS) and let you know when you are required to automatically enrol and start making deductions for the employee.
Find out more about
- Employees with special circumstances
- Employees exempt from automatic enrolment
- Compulsory employer contributions
- Employer superannuation contribution tax (ESCT).
Date published: 20 Aug 2014