KiwiSaver and employers

If you have a new employee who is not already a member of a KiwiSaver scheme, but is eligible to join KiwiSaver, you must consult the Inland Revenue KiwiSaver employer guide (KS4) to check whether they should be automatically enrolled. If yes, you’ll need to:

1. Give the employee an AMP KiwiSaver Scheme employee information pack (within seven days of starting work for new employees).

2. If the employee agrees to join the AMP KiwiSaver Scheme, ask them to read the Product Disclosure Statements, and complete the application form (they’ll need to supply basic personal information, PIR, IRD number, etc.). Add your employer details, including your employer plan number, and send them to AMP.

3. Let the employee know you will:

● Start employer contributions at a minimum of 3% of the employee’s pay (gross salary or wages), from their next pay (unless an exemption applies).
● Start employee deductions at 3% of their gross pay (salary or wages), unless they have specified 4%, 6%, 8% or 10%, from their next pay.

4. Give Inland Revenue the employee’s details using the KiwiSaver employee details form (KS1). The form can be filled out on paper or online.

5. Begin paying employee deductions and employer contributions to Inland Revenue (IRD) with PAYE payment and ESCT during payday filing.

KiwiSaver employee details (KS1) -To notify Inland Revenue of new employees that have been automatically enrolled or who have decided to opt into KiwiSaver.
KiwiSaver employer guide (KS4) - Details employers’ KiwiSaver obligations, including enrolment and contribution processes and general administration.

If you have a new or existing employee and they’d like to transfer to AMP from another KiwiSaver scheme:

1. Give the employee an AMP KiwiSaver Scheme employee information pack – ask them to read the Product Disclosure Statements and complete the application form.

2. Once the employee has completed the application form, complete the employer details, including your employer plan number and send it to AMP. We’ll arrange for the transfer of the employee to the AMP KiwiSaver Scheme. It’s that easy!

3. Let the employee know you will:

● Start employer contributions at a minimum of 3% of their gross salary or wages from their next pay (unless an exemption applies).
● Start employee deductions at 3% of their gross salary or wages (unless they have specified a higher voluntary contribution of 4%, 6%, 8% or 10%) from their next pay.

4. Pay employee deductions and employer contributions to Inland Revenue with PAYE payment and ESCT.

It is up to the individual to change their KiwiSaver contribution rate. Employees' KiwiSaver contributions can be changed if:

● They complete a KiwiSaver deduction form (KS2) so you can make the appropriate deduction; or
● They notify you in writing.

KiwiSaver deduction form (KS2) - Employee instructions to their employer regarding their contribution level.

The qualifying age for accessing KiwiSaver retirement savings is currently 65 (with a few exceptions). At this point employer and employee contributions are no longer compulsory, but you can still make voluntary employer contributions.

If an eligible employee chooses to cease contributions to their KiwiSaver, they must complete a non-deduction notice (KS51). You do not need to send this to Inland Revenue, but a copy should be kept for your records.

Your employee can restart their contributions at any time by completing a KiwiSaver deduction form (KS2). The employee must wait three months from you accepting the non-deduction notice to restart their contributions, unless you agree otherwise.

KiwiSaver deduction form (KS2) - Employee instructions to their employer regarding their contribution level.
Non-deduction notice (KS51) - For employees who want to stop contributions after reaching their qualifying date.

An employee can apply for 3-12 month savings suspension if:

● 12 months have passed since Inland Revenue, or the KiwiSaver provider received the first contribution from their salary or wages (or earlier in case of financial hardship); and
● They submit a request for a Savings Suspension direct to Inland Revenue online.

New employees who have been automatically enrolled in KiwiSaver are able to opt out between two to eight weeks of starting work. They will need to complete a new employee opt-out request (KS10), which you will need to send to Inland Revenue no later than the next time you’re required to send an Employer monthly schedule (IR 348) to Inland Revenue.

We recommend employees seek out financial advice from a professional, like one of our KiwiSaver Advisers, before they opt out.

New employee opt-out request (KS10) - For new employees who are subject to automatic enrolment and want to opt out of KiwiSaver.

Your employees may make an early withdrawal under special circumstances such as a first home purchase, serious illness, a life-shortening congenital condition, significant financial hardship and permanent emigration. Visit amp.co.nz/kiwisaver for further information.

No, self-employed individuals do not need to make compulsory employer contributions to themselves – all of their KiwiSaver contributions are voluntary.

You will probably need to pay compulsory contributions to casual employees, but not always.

You aren’t obliged to enrol the casual employee in KiwiSaver if they are working for you for less than 28 days, or if they are working for you irregularly and get holiday pay on top of their wages. But in most other cases the employee will meet eligibility criteria, so you will be required to contribute a minimum of 3% of their pay.