KiwiSaver

KIWISAVER AND YOUR EMPLOYEES

As an employer, you play an important role in helping your employees save for their retirement, and your main role in Kiwisaver is to give new employees and other existing staff who are interested in joining, an Employee Information Pack (KS3), pass employees details onto Inland Revenue to enable them to be enrolled and to deduct contributions from their salary and pay these to Inland Revenue through the PAYE system.  For more information about your Kiwisaver obligations, click on the attached link http://www.ird.govt.nz/kiwisaver/employers/administering/

EMPLOYEE CONTRIBUTIONS

If you are employed, you can choose to contribute either 3%, 4% or 8% of your pay, and if you are eligible, your employer will also contribute to your Kiwisaver savings.

EMPLOYER CONTRIBUTIONS

Employers are required to make employer contributions to their employee’s Kiwisaver account or complying fund at the rate of 3% which is then subject to Employer Superannuation Contribution Tax (ESCT).

DETERMINING THE ESCT RATE

In order to determine the ESCT rate, you combine your employee’s  annual salary or wage and the gross annual employer contributions.  Further information can be found at http://www.ird.govt.nz/payroll-employers/make-deductions/deductions/super-contributions/ 

 

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