provide all new employees* with a KiwiSaver information pack (supplied by Inland Revenue) and an Investment Statement for your preferred provider scheme (if you have one) within 7 days of starting work
act on any opt-in request, by providing information packs (and Investment Statements if appropriate) to employees within 7 days of them giving you a KiwiSaver deduction notice
send all member details to Inland Revenue
deduct KiwiSaver contributions from each member's pay and forward these to Inland Revenue once a month via PAYE
forward any opt-out requests to Inland Revenue, and refund any contributions deducted but not yet forwarded to Inland Revenue to any employee who opts out
act on any contributions holiday notices.
A Bill before a Select Committee proposes that from 1 April 2008 employers will be required to match employee contributions to a KiwiSaver scheme as follows:
1% of gross salary or wages from 1 April 2008
2% of gross salary or wages from 1 April 2009
3% of gross salary or wages from 1 April 2010
4% of gross salary or wages from 1 April 2011
This may change in the future.
*Some exceptions apply, such as for employees who are already KiwiSaver members or are employed by an exempt employer.
No. KiwiSaver is a voluntary savings initiative. However, once employees have joined they will generally remain KiwiSaver members until they reach the age of eligibility for New Zealand Superannuation (currently 65) or have been a member of a KiwiSaver scheme for 5 years, whichever is later.
Only people under the New Zealand superannuation qualification age (currently 65) who are entitled to permanently reside in New Zealand can join a KiwiSaver scheme. Employees on temporary work visas cannot join.
Part-time workers can join a KiwiSaver scheme, however staff on contracts of 28 days or less do not have to be automatically enrolled in KiwiSaver. The Government has proposed that from 1 April 2008 employers will not be required to automatically enrol casual employees.
Workers aged under 18 will not automatically be enrolled into a KiwiSaver scheme. However, they can join at any time by 'opting in', however they will not be eligible to receive member tax credits until they turn 18.
If you're self-employed you can join a KiwiSaver scheme. If your business is a separate entity to yourself and you pay yourself a salary you may be able to take advantage of the tax free employer contributions. Call 0800 500 648 to find out more.
You must enrol all new staff members aged 18 to 65 who are not already KiwiSaver members (unless you are an exempt employer). They then have up to eight weeks to decide if they want to remain a KiwiSaver member or 'opt out'.
Because KiwiSaver accounts automatically follow employees from one job to the next, new staff may already have a KiwiSaver account when they join your organisation. In that case, you only need to deduct contributions from their salary or wages and forward them to Inland Revenue.
First sign the Preferred Provider Agreement (PDF, 164kb) and return it in the freepost envelope provided. ING will instruct Inland Revenue that ANZ KiwiSaver (which is offered and managed by ING (NZ) Limited and distributed through ANZ) is your preferred provider scheme.
If you choose the vesting option for your workplace, complete the Employer Contribution Options form (PDF, 332kb) (which will form the basis of the Participation Agreement, which is the legal agreement between you, ING (NZ) Limited and Guardian Trust Superannuation Trustees Limited) and return it along with the Preferred Provider Agreement. Review the ANZ KiwiSaver Trust Deed and Participation Agreement (which ING will send you) and sign and return the Participation Agreement.
You’ll be sent ANZ KiwiSaver Scheme start-up packs (which include the ANZ KiwiSaver Scheme Investment Statement) for you to distribute to your staff.
If you don't offer a preferred provider KiwiSaver scheme, employees simply choose their own scheme, or if an employee does not choose their own scheme the Inland Revenue will allocate that employee to a default scheme.
No. Employer contributions to all KiwiSaver schemes are currently voluntary. However, a Bill before a Select Committee proposes that from 1 April 2008 employers will be required to match employee contributions to a KiwiSaver scheme as follows:
1% of gross salary or wages from 1 April 2008
2% of gross salary or wages from 1 April 2009
3% of gross salary or wages from 1 April 2010
4% of gross salary or wages from 1 April 2011
This may change in the future.
The Government announced that from 1 April 2008 employers contributing to an employee's KiwiSaver scheme account are entitled to an employer tax credit of up to $20 per week ($1,040 per year) per employee. These tax credits are paid to employers through the PAYE system as an offset against the employer's KiwiSaver contributions.
Over and above the level of any employer contributions required by Government you can contribute as much or as little as you like, and set your own rules and conditions around those additional contributions you make (for example, vesting).
Any employer contributions over and above the level of employer contributions required by the Government may be able to be vested over various timeframes, depending on the scheme provider.
You'll be required to keep KiwiSaver records in the same way you keep PAYE records. This will include which of your employees are KiwiSaver members, their contribution rates, and any notification of contributions holidays or opt-outs.
No. Neither you nor any of your staff will be expected to provide financial advice. The Inland Revenue will provide you with KiwiSaver information packs to give to your employees. These packs explain how KiwiSaver works, and tell employees how they can receive more information. If you are only passing on information about KiwiSaver to your employees, or choosing a preferred provider KiwiSaver scheme for your employees, you will not be liable as an investment adviser or promoter under the Investment Advisers and Securities legislation. For more information, visit www.ird.govt.nz/kiwisaver/employers.
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