An employee's membership of the KiwiSaver scheme is based on whether they
started before or after the scheme began, whether they are a casual employee,
their age, whether they have opted in or opted out, the default settings you
make for your business, and a few other things.
If it sounds confusing, it is - but hey, this is Ace Payroll. We eliminate
all that confusion.
In the example below, an employee has been added to the payroll with the
minimum of details, after 1st July 2007.
We are in the pay calculation screen, processing their first pay.
Based on the various membership criteria, Ace Payroll has decided the employee
is subject to the
Note the line showing the employee
KiwiSaver deduction, the rate, and the amount deducted. These have been added
automatically, based on the employee's default membership status.
Note also the option to
the employee. We have circled it yellow.
Note also the
option is shown
because no KiwiSaver deductions have ever been made for
If an employee wants to opt out of the scheme, it is best for
that to be decided when paying their first pay.
Once a KiwiSaver deduction has been made, the
option is shown
until the 2 month time limit for opting out has elapsed.
Note that if an employee opts out after their first pay, they will have
already made a KiwiSaver deduction, which the IRD will refund to the employee
in due course. For more information on refunding contributions see
KiwiSaver Reversals and Refunds
Use the Reversals and Refunds Wizard to reverse and optionally refund KiwiSaver deductions to employees that were automatically enrolled, and then opted out of KiwiSaver