How does KiwiSaver Affect Employers?
KiwiSaver has been designed to minimise compliance cost for employers where possible by building off existing processes.
Employers are required to:
- Provide all new employees* and those who wish to opt in with a KiwiSaver information pack supplied by Inland Revenue. This pack includes general information about KiwiSaver, where to obtain more information and an opt out form.
- Notify IRD that a new employee has started and pass on the new employee's name, IRD number and address*. This requirement will apply also to employees who have opted in directly.
- Notify IRD that an employee who was automatically enrolled has elected to opt out.
- Automatically enrol new employees and ensure contributions commence by making deductions from their first pay.
- Make deductions of KiwiSaver contributions from relevant employees' gross salary or wages and pay them to the IRD. The filing of information can be aligned to the monthly filing schedule.
- Manage opt out and contribution holiday schedules (information from IRD and employee).
* These requirements do not apply if the employer is an "exempt employer".
Employers are able to choose whether or not to:
- Select a preferred provider for employees who do not choose their own KiwiSaver provider. If the employer has selected a preferred scheme for employees, the employer must provide an investment statement for that scheme to all new employees and those who opt in, as well as a statement outlining the effect of the employer's choice for employees who do not select their own scheme.
- Make employer contributions to KiwiSaver. Specified Superannuation Contribution Withholding Tax (SSCWT) will not apply to employer contributions up to a cap of lesser of the employee's contribution or 2% of the employee's gross salary. SSCTW will apply on employer contributions over 2%.