The Role of Employers

Effective 1 April 2013

The role of an employer in relation to KiwiSaver for their employees is to:

  • Check whether new employees are eligible to join KiwiSaver.
  • Check whether new employees should be automatically enrolled.
  • Hand out the IR KiwiSaver employee information pack (KS3) to new employees who qualify for automatic enrollment, and existing who wish to opt in.
  • Automatically enroll all new employees who are eligible.
  • Provide information to IR about all new employees who are automatically enrolled, and eligible employees who have opted into KiwiSaver.
  • If you have chosen a scheme provide the new employee with a written statement and a copy of that scheme's investment statement.
  • Deduct KiwiSaver member contribution from salary/wages (from the first pay after employment begins) for new employees that are automatically enrolled, or have opted in. Effective 1 April 2013 the minimum member contribution is 3% (previously 2%) however the employee can elect to contribute at a higher rate of either 4% or 8%.
  • Administer opt-out elections for employees who choose to do that (employees can also opt-out by advising Inland Revenue). Refund any contributions deducted that have not already been sent on the Inland Revenue and notify Inland Revenue of the opt-out.
  • Make employer contributions. Employers may choose to make their employer contribution more than the mimimum 3%. Effective 1 April 2012 all employer contributions are liable for "ESCT" (or employer superannuation contributions tax). The exception to this is if the employee and employer have agreed to treat some or all of the employer contribution as salary or wages under the PAYE rules.
  • Pay the contributions deducted to Inland Revenue with your PAYE.
  • Stop & Start deductions as directed by IR.