myIR, payments and more
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. Employees can choose to be enrolled in both your alternative scheme and KiwiSaver. You will be required to deduct employee contributions for both schemes.
If employees ask for advice
You should not give financial advice to employees. Instead, refer them to the Commission for Financial Capability's Sorted website or encourage them to see an independent advisor. Providing general savings or KiwiSaver information does not constitute giving financial advice.
Existing employees are not enrolled automatically but they can join KiwiSaver if they meet the eligibility criteria. They can do this by contacting their chosen KiwiSaver scheme provider or by giving you the KiwiSaver deduction form (KS2) included in the Your introduction to KiwiSaver - employee information (KS3) pack.
Within 7 days
You must give a Your introduction to KiwiSaver - employee information (KS3) pack to any employee who asks for one. If you already have a KiwiSaver scheme in place, give them that scheme's investment statement and a statement advising the employee that you have chosen a scheme they will be allocated to unless they choose their own KiwiSaver scheme.
The employee uses the KiwiSaver deduction form (KS2) to let you know whether they want 3%, 4% or 8% of their pay deducted. If they don't nominate a contribution rate, make deductions at the default rate of 3%. If an employee gives you a deduction notice, and you are satisfied they are eligible to join KiwiSaver, you must pass this information on to us.
From their next pay
Begin deductions at the employee's nominated rate or the default rate of 3% from the next pay date. Continue to make deductions until:
- the employee no longer receives salary or wages,
- a contributions holiday is granted,
- you are notified by us, or
- the employee becomes entitled to withdrawal their savings and gives you a Non-deduction notice (KS51).
We will advise you when an employee becomes entitled to withdraw their savings.
We may write to you asking you to begin making deductions from an employee's pay:
- after they join by contracting direct with a scheme provider, or
- when a contributions holiday expires.
Compulsory employer contributions
You're required to make a compulsory contribution to your employee's KiwiSaver account or complying fund at 3% of their gross salary or wage.
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 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 form (KS1) or ir-File. You can supply this information manually or complete it online if you are registered to use our ir-File service.
You are only required to supply us with the information the employee gives you. You will not be penalised 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.
Find out more about
- Employees with special circumstances
- Employees exempt from automatic enrolment
- Compulsory employer contributions
- Employer superannuation contribution tax (ESCT)