As an employer, you play an important role in helping your employees save for their retirement. Employees who start a new job and meet the criteria for automatic enrolment must be enrolled in KiwiSaver, unless you offer an approved alternative superannuation scheme or have been granted exempt employer status.
You must give all new employees, and any existing employees who ask for information, the “Your introduction to KiwiSaver”.
Determine if your employee is eligible to join KiwiSaver.
To be eligible to join, your employee must be:
- aged 18 or over, and under the age of 65 (currently the age of eligibility for NZ Superannuation)
- living, or normally living, in NZ
- entitled to stay in NZ indefinitely, this includes (but is not limited to) holders of NZ passports, Australian passports and residence visas
an Australian or NZ citizen living in NZ
An employee is not eligible to join if they:
- hold a temporary entry class visa, or a limited-purpose visa
- are aged 65 or over.
Give each new employee a copy of:
- Your introduction to KiwiSaver – employee information (KS3)
- KiwiSaver deduction form (KS2)
- New employee opt-out request (KS10).
When your employee gives you their completed KS2, complete the KiwiSaver employee details (KS1) form and send it at the same time as your next Employer monthly schedule (EMS/IR348). Start making deductions from the employee’s first pay, even if they intend to opt out. When you start making deductions, you must also pay compulsory employer contributions and employer superannuation contribution tax (ESCT) in relation to the employee.
Your new employee will let you know if they’re already a member on their completed KS2.
- If they’re already a member, start making deductions from their first pay at the rate nominated by the employee, or the minimum deduction rate of 3%, whichever is greater.
- If the employee doesn’t advise you that they’re an existing KiwiSaver member, follow the new employee rules.
Existing KiwiSaver members can’t opt out. If you have a new employee who is an existing member, and they don’t want deductions from their pay, they must apply for a contributions holiday. Start making deductions and paying compulsory employer contributions and ESCT until the employee gives you a copy of their contributions holiday letter.
If the new employee is already a member, and is already on a contributions holiday, they still need to give you a completed KS2. They must also give you a copy of their contributions holiday letter.
Start making deductions and pay compulsory employer contributions and ESCT from the next pay after the end of their contributions holiday. Use the rate nominated by the employee, or the minimum deduction rate of 3%, whichever is greater.
An existing employee needs to give you a completed KS2 if they want to join KiwiSaver. You’ll then send a completed KS1 showing their details with your next EMS. These employees can’t opt out because they’ve made a decision to join KiwiSaver.