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Calculate KiwiSaver deductions and contributions

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You’ll need to work out the amounts for employee KiwiSaver deductions, your employer contributions and the employer superannuation contribution tax (ESCT).

Once you've done that, add the amounts into your employer return and pay them by the due date.

Check if your employee has special circumstances

Check savings suspension details

Work out the gross pay for your employee

There are differences between gross pay for employees in KiwiSaver and those in complying funds. Check what those differences are to help you work out your employee’s gross pay. 

Gross pay for KiwiSaver and complying funds
 

Check the rate for the employee deduction

The rate to deduct KiwiSaver from your employee's pay is on the KiwiSaver deduction - KS2.

If you've not been given a rate use the 3% base rate.

Calculate the deduction for your employee

Use your employee’s chosen rate and their gross pay from step 3 to calculate their deduction.

Enter the employee deduction amount into your employer return

Calculate your contribution using gross pay for the employee

The minimum contribution rate for employer KiwiSaver contributions is 3%. If you contribute at a higher rate, use that for your calculation. 

Calculate the amount of your contribution using the employer contribution rate and the gross pay amount from step 3.

 

Deduct ESCT from your employer contributions

Employer superannuation contribution tax (ESCT) must be deducted from all of your employer contributions to KiwiSaver and complying funds. This includes any voluntary contributions.

Work out the ESCT rate for each employee. The rate depends on how much they earn and how long they’ve worked for you.

Find the ESCT rate for each employee

Deduct ESCT under the PAYE rules

Deduct ESCT from each employer contribution

Enter your ESCT amount into your employer return

What happens next

Complete the rest of your return. Send it to us and make any payments by your due date. 

If your employee is in a complying fund, do not pay employee deductions or your contributions to us. Pay them directly to their complying fund.