What is KiwiSaver?
Kiwisaver is a voluntary saving scheme to help Kiwis achieve long-term saving goals for their retirement or first home. Employees will be automatically enrolled but can opt-out in the first eight weeks of a new role. Employers are obliged to match at least 3% of the employee's pay.
If they are enrolled in Kiwisaver, payroll software will need an employee’s Kiwisaver details to ensure it is handled correctly. Enrolled employees will have Kiwisaver included on their deductions in the Draft Pay, and once paid the amount will be viewable on their payslips.
Employees can ask to change their contribution rate either in writing or by completing a KS2 form found on the IRD website. This rate can then be adjusted in the payroll settings.
Some employers set up Salary Sacrifice / Total Renumeration for their employees to ensure everyone is getting paid the same amount, even if they aren’t opting in to Kiwisaver.