Te KiwiSaver mā te kaimahi he āhuatanga motuhake ōna
KiwiSaver for employees with special circumstances
KiwiSaver deductions and employer contributions may change depending on your employee’s situation.
Employees on accident compensation
If you take part in the ACC partnership programme, or have an ACC employer reimbursement agreement, you continue:
- paying an employee after an accident
- deducting their KiwiSaver contributions from these payments.
Your employee can stop deductions from their pay with a savings suspension notice.
If your employee continues deductions, you can choose to continue making employer contributions.
When ACC pays weekly compensation to your employee, you can stop:
- deductions from their pay
- paying employer contributions.
Suspending KiwiSaver deductions and contributions
Employees on paid parental leave
If you continue to pay your employee while they’re receiving paid parental leave, keep:
- deducting employee contributions
- making employer contributions unless they’re on a savings suspension.
When an employee returns to work re-start deductions and your contributions.
Contributing to KiwiSaver when your employee is on unpaid leave
When an employee goes on unpaid leave, KiwiSaver contributions normally stop. However, employers who do choose to carry on contributing have 2 options.
Include contributions in your employer information- IR348
If you want to carry on contributing to an employee’s KiwiSaver, include the contribution in your regular employer information – IR348 form. We will send the contributions to the employee’s KiwiSaver provider.
Note: If the employee is on unpaid leave, show the employee’s gross earnings as zero.
Make a lump sum contribution after the employee’s leave ends
To make a lump sum contribution, work out the amount the employee would have received in KiwiSaver contributions during their leave and then pay this to us once they return to work.
Note: You must deduct ESCT from your employer contributions unless they are treated as part of salary/wages.
Jane begins her 26-week parental leave. Jane is not receiving any salary or wages, as she has chosen to take unpaid leave. Jane’s employer decides to voluntarily contribute to Jane’s KiwiSaver account during her unpaid leave.
Jane’s usual gross salary is $1,500 a week, and the employer chooses to contribute 3.5% of this amount weekly, even though Jane is not earning during this period.
Employer superannuation contribution tax (ESCT)
Although Jane is not receiving wages, the employer’s KiwiSaver contributions are still taxable. Based on Jane’s previous annual income of $78,000, her contribution is taxed at 30% ESCT.
Weekly contribution for the pay period 18 October to 24 October
The calculation is based on ordinary time earnings.
3.5% × 1,500 = $52.50 ESCT $45 x 30% = $13.50 Net contribution = $39.00