An employee's KiwiSaver settings are set when creating the employee or can be found under Manage > Employees on their Employment tab.
Complete the following fields to suit each employee:
Pre-Existing Member - This field should be ticked if the employee is already a KiwiSaver member (e.g. if they are a new hire and have previously enrolled in KiwiSaver with another employer).
KiwiSaver Enrolment Date - This field will display for employees who aren't pre-existing members. If the employee has joined KiwiSaver whilst in your employment, either through automatic enrolment of a new hire or an existing employee choosing to join, enter the KiwiSaver Enrolment Date.
KiwiSaver Opt Out Date - If the new employee opts out of KiwiSaver, enter the KiwiSaver Opt Out Date. An employee can opt out after two weeks of employment, but before their ninth week starts. Employees can opt out online here, or complete the KS10 form from the IRD website.
Employee Deduction Rate - Select the employee’s KiwiSaver Contribution Rate: 3% (default), 4%, 6%, 8% or 10%. This is the amount of gross pay that the employee has chosen to contribute to KiwiSaver each pay. The appropriate contribution percentage will automatically be displayed next to the KiwiSaver Employee Deduction Pay Item in each pay.
Employer Contribution Rate - The rate the employer contributes to the employee's KiwiSaver fund. This will default to the contribution rate you've set in your company's Payroll Settings (usually 3%). If you wish to contribute a different rate for this employee, you can click the padlock to unlock the rate and edit it.
Savings Suspension - An employee can suspend their KiwiSaver contributions by taking a Savings Suspension. The employee must have contributed to KiwiSaver for at least one year before they are eligible. Tick the Savings Suspension box in the employee's settings to suspend their KiwiSaver contributions, and uncheck the box when they are ready to resume.
If the employee is not eligible for KiwiSaver, or is an existing employee being set up in PayHero for the first time, and does not contribute to KiwiSaver, you can leave all fields blank when adding the employee.
For KiwiSaver enrolled employees, the KiwiSaver Employee Contribution and Employer Contribution will also be added to the employee's Default Pay tab, and this will flow through to their payslips.
If an employee requests a change to their contribution rate (by letter or by completing a KS2 KiwiSaver deduction form), you will need to change their KiwiSaver settings on their Employment tab to select the new rate.
Frequently Asked Questions
If you have employees under 18 who have decided to opt in through their KiwiSaver provider, you may choose not to make Employer Contributions for these employees. To remove the employer deduction, first click the padlock to unlock the field:
Then enter 0 as the Employer Contribution amount, and save the employee's record.
Be sure to remember to set the Employer Contribution back to the correct rate once the employee turns 18.
PayHero will do its best to automatically calculate the correct ESCT rate for your employees, or you can specify the appropriate rate yourself. Learn more here: Employer Superannuation Contribution Tax (ESCT)