For Your Office

A Quick Overview of KiwiSaver for Business Owners

All new employees should be automatically enrolled for KiwiSaver if they are:

• aged 18 or older, and under the age of 65 
• living, or normally living, in NZ 
• entitled to stay in NZ indefinitely (among others, this includes NZ and Australian passports holders and those with residence visas) 
• an Australian or NZ citizen living in NZ.

An employee is not eligible to join KiwiSaver if they:

• hold a temporary entry class visa 
• have a limited-purpose visa, or 
• are aged 65-years-old or older.  

The only time you are excused from enrolling a new and eligible employee into KiwiSaver is when:

• you offer an approved alternative superannuation scheme, or 
• you have been granted exempt employer status. 

When new and eligible employees start, you must do the following:
1. Give them the following forms: 

• Your introduction to KiwiSaver – employee information (KS3) 
• KiwiSaver deduction form (KS2) 
• New employee opt-out request form (KS10).    

2. After the KS2 form is returned, you must:

• Complete the KS1 form and send it to the IRD at the same time as your next PAYE Return (Employer Monthly Schedule/IR 348) or you can file it online through myIR 
• Start deductions from the employee’s first pay.  Remember the 3% compulsory employer contributions and employer superannuation contribution tax (ESCT). 
• If the employee opt outs and completes a KS10 form you do not make any deductions. Send their KS10 form to the IRD as per the KS1 form. 

If your employee is already a KiwiSaver member, start making deductions from their first pay at the greater of:

• the rate they’ve nominated, or 
• the minimum deduction rate of 3%. 

If an existing employee wants to join KiwiSaver you should:

• Have them complete and return a KS2 form to you. 
• Once you receive this KS2 form you then send the IRD a completed KS1 form with your next EMS (showing your employee’s details) or file it online through myIR 

Other important information for employers:

• If an employee doesn’t advise you that they’re an existing KiwiSaver member, follow the new employee rules. 
• Existing KiwiSaver members can’t opt out.  If you have a new or existing employee who is a KiwiSaver member, and they don’t want deductions from their pay, they must apply for a contributions holiday.  Start making deductions and paying compulsory employer contributions and ESCT until you get a copy of the employee’s contributions holiday letter
• If the new employee is already a member, and is already on a contributions holiday, they still need to give you a completed KS2.  They must also give you a copy of their contributions holiday letter. 

For further information go to http://www.ird.govt.nz/kiwisaver/employers/?id=201405MegaMenu
Payroll team
Anne Bland           Extn. 831
Carolyn Lawrence Extn. 837
Maree Craig         Extn. 825