You play an important role in helping your employees save for their retirement. To help you get it right for you and your employees, we’ve created a summary of what you need to do.
Make KiwiSaver available to all eligible employees
You must provide KiwiSaver information to all new employees who are eligible to join. Give them a copy of the:
- Your introduction to KiwiSaver – employee information (KS3) factsheet
- KiwiSaver deduction form (KS2), and
- New employee opt-out request (KS10) form.
If an existing employee asks about KiwiSaver, give them a copy of the KS3 and KS2.Employees are eligible to join when they’re:
- aged 18 to 64
- living, or normally living, in New Zealand, and
- entitled to live in New Zealand permanently.
KiwiSaver deductions and employer contributions
When you employ KiwiSaver members, every pay period:
- deduct KiwiSaver from their pay (before tax). The employee can choose a rate of 3%, 4% or 8%
- pay employer contributions based on their pay (before tax). These are at the rate of 3% (or higher).
You deduct employer superannuation contributions tax (ESCT) from the employer contributions you make. The ESCT rate is determined by the employee’s yearly income and the amount of your employer contributions.
You send KiwiSaver deductions, employer contributions and ESCT to us on your Employer monthly schedule (IR348) and Employer deductions (IR345) form.
Temporary and casual employees
You don’t have to enrol temporary employees for KiwiSaver. Temporary employees are employed for 28 days or less, or employed to work “as and when” required without a specific end date, for 28 days or less. But if an employee is already a member and gives you a KS2, you must deduct KiwiSaver and pay employer contributions.