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KiwiSaver Pay Calculation

Membership
  • 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.
Pay Calculation
  • 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 Automatic Enrolment rules.
  • 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 Opt Out the employee. We have circled it yellow.
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  • Clicking Opt Out takes you to the KiwiSaver Employee Setup screen, from where you can opt out the employee if required.
  • Note also the Opt Out option is shown red because no KiwiSaver deductions have ever been made for this employee.
  • 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 Opt Out option is shown blue 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 Adjustments.

More KiwiSaver Information

KiwiSaver Overview
An overview of everything an employer needs to know about KiwiSaver more..
KiwiSaver Employee Setup
KiwiSaver employee setup in Ace Payroll more..
KiwiSaver Pay Calculation
KiwiSaver deductions are fully automated each pay more..
KiwiSaver Automatic Enrolment
Every person that starts a new job is automatically enrolled in the scheme more..
KiwiSaver Exempt Employees
Under 18, over 65, and casual employees are exempted from automatic enrolment more..
KiwiSaver Contribution Rates
All members must contribute 3% of gross wages and may contribute 4% or 8% more..
KiwiSaver Opting Out
An employee has 8 weeks from the start of employment to opt out of the scheme more..
KiwiSaver Opting In
Anyone can opt in to the scheme at any time. Once opted in, an employee can never opt out more..
KiwiSaver Contributions Holiday
All applications for a contributions holiday must be made to the IRD using a KS6 Contributions Holiday request form more..
KiwiSaver Employer Contributions
All employers must contribute 3% for each employee enrolled in KiwiSaver more..
ESCT - What Is It?
A description of Employers Superannuation Contributions Tax and how it is paid more..
ESCT Calculation
ESCT is payable on all KiwiSaver employer contributions more..
ESCT Tax Rates
Employer KiwiSaver contributions are taxed at the top employee marginal tax rate, based on estimated annual earnings more..
ESCT on IRD Monthly Returns
I am doing my monthly return for IRD and the ESCT figure does not show on my IR348 return. What is wrong? more..
KiwiSaver Contributions Report
The KiwiSaver Contributions Report keeps track of contributions, reversals and refunds more..
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 more..
KiwiSaver Company Setup
For most employers no company setup is required in Ace Payroll more..
Total Remuneration
Use when an agreed salary package includes KiwiSaver employer contributions more..
KiwiSaver Scheme Providers
The linking of employees to scheme providers does not happen at the payroll end of the process more..
Exempt Schemes
How to disable the deduction of compulsory employer KiwiSaver contributions for employees in exempt KiwiSaver schemes more..
Alphabetical Index
The Ace Payroll alphabetical index provides links to all documentation more..
Ace Payroll FAQ Contents
All the most common Ace Payroll questions grouped by categories in a short table of key words more..
Ace Payroll Frequently Asked Questions
All the most common questions we are asked at Ace Payroll listed in a question format and grouped by category more..

KiwiSaver Forms

image KS1 Employee Details
An employer uses this form to notify Inland Revenue about
  • a new employee being enrolled automatically.
  • an existing employee opting in.
image KS2 KiwiSaver Deductions
An employee uses this form to provide details to an employer if they are
  • starting new employment.
  • an existing employee opting in.
  • a member contribution rate change.
image KS3 Employee Information
An introductory guide for an employee about the KiwiSaver scheme.
KS4 KiwiSaver Employer Guide
A 36 page overview of your KiwiSaver responsibilities as an employer.
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KS6 Contributions Holiday
An employee uses this form to request a contributions holiday.
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image KS10 New Employee Opt Out
An employee uses this form if they have been automatically enrolled and don't want to be a member of KiwiSaver.