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Employer responsibilities
Employing staff: When an employee starts or stops working for you

Starting and ending employment

These are your responsibilities as an employer when an employee starts or stops working for you or transfers to another branch of a company.

When an employee... they must... and you must...
starts working for you fully complete a Tax code declaration (IR330).

If they're a KiwiSaver member they must also:
  • complete a KiwiSaver deduction form (KS2)
  • supply a contributions holiday letter (if they're on a contributions holiday)
 show their employment start date on the Employer monthly schedule (IR348).

If they're not a KiwiSaver member but are eligible to join you must also:
  • give them a KiwiSaver employee information pack(KS3), and
  • automatically enrol them in KiwiSaver if they're eligible.
stops working for you   show their employment finish date on the Employer monthly schedule (IR348).
stops working for you and you rehire them:
  • in the same year, or
  • in a future year
 if they're a KiwiSaver member:
  • complete a KiwiSaver deduction form (KS2), and
  • supply a contributions holiday letter (if they're on a contributions holiday)
  • get them to complete another Tax code declaration (IR330), and
  • show their start date on your Employer monthly schedule (IR348).
If they're not a KiwiSaver member but are eligible to join you must also:
  • give them a KiwiSaver employee information pack (KS3)
  • automatically enrol them in KiwiSaver, if they're eligible.

 

Note  
From 1 April 2008, employees who received a redundancy payment on or after 1 December 2006 may be able to claim a 6% redundancy tax credit, up to a maximum of $3,600. Find out how your employees can make the claim and what documentation you will need to give them.

Transferring to another branch

If an employee... then... and...
transfers from one branch of a company to another and is paid by the new branch office on a separate payroll
  • the old branch treats the transfer as if the employee has stopped work, and
  • the new branch treats the transfer as if the employee is new.
 the new branch must:
  • get the employee to fill in another Tax code declaration (IR330), and
  • show the employee's start date on their Employer monthly schedule (IR348)
If the employee is a KiwiSaver member they must:
  • complete a KiwiSaver deduction form (KS2), and
  • supply a contributions holiday letter (if they're on a contributions holiday).
If the employee isn't a KiwiSaver member but is eligible to join you must:
  • give them a KiwiSaver employee information pack (KS3)
  • automatically enrol them in KiwiSaver, if they're eligible.
transfers from one branch of a company to another and is paid from a central or head office that office continues deducting PAYE from the employee's earnings. the employee does not need to complete a:
  • new tax code declaration, or
  • KiwiSaver deduction form.
You don't need to automatically enrol the employee in KiwiSaver.


Note  
If an employee changes payrolls between "associated employers" during a payroll period, then only one of the payrolls can claim KiwiSaver and/or complying fund employer tax credits for that month. It's up to the employer group to decide which payroll claims, but only one can claim.

Definition of associated employers

  • Two or more companies if those companies are in a group
  • All partners in a partnership
  • All other situations where individuals are associated by common interest or property or control (for example, executors and beneficiaries of an estate, trustees and settlers in a trust).

 

 


Date published: 18 Nov 2008

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