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You need to work out your employees' contributions, deduct the correct amount from their pay and pass them on to us.
Employees can choose a contribution rate of either 3%, 4%, 6%, 8% or 10% of their gross pay.
Total salary or wages including:
You'll usually pay employer contributions on the gross pay except for any excluded salary components. These include:
If an employee doesn't select a rate on their KiwiSaver deduction form (KS2) make deductions at the default rate of 3%.
They can't change their contribution rate more than once every three months unless you agree.
The definition of gross salary or wages is different for contributions to complying funds. It's worked out on gross base salary or wages. This excludes:
As an employer you're required to contribute the equivalent of 3% of your employee's gross salary or wages.
Contributions made to existing superannuation schemes reduce the amount of compulsory employer contributions you're required to pay if certain conditions are met.
All employer contributions are liable for ESCT (employer superannuation contributions tax). The exception to this is if you and your employee have agreed to treat some, or all, of the employer contribution as salary or wages under the PAYE rules.
To work out deductions use the:
Make sure deductions start from your employees' first pay.
You can pass on the employer contributions using the:
You can stop making deductions for an employee when they:
If you make an error in deducting contributions from an employee's pay you can amend this.
If you file online, you can amend your EI in myIR.
We'll refund any contributions made in error. If these include employer contributions and ESCT, these will be repaid to you.
This process will take longer if we have to request the refund from the member's scheme
If you continue to pay an employee after an accident you must keep deducting KiwiSaver. You can choose to make employer contributions but you don't have to. If an employee wants to stop deductions they need to apply for a savings suspension.
When ACC pays the employee weekly compensation you don't need to make the employee deductions or employer contributions.
Make deductions as normal at 3%, 4%, 6%, 8% or 10% from the final payment of salary or wages made up for the employee.
These apply where you intend to make ongoing payment to your employee after they retire. One of these relates to periodic payments by way of:
Contact us to learn more about these exclusions.