Every person that starts a new job from 1st July 2007 is automatically enrolled in the scheme. Section 10(a)

New employees under 18 or over 65 are exempted from automatic enrolment. Section 10(b)

Automatic enrolment does not apply to temporary or casual staff engaged for 28 days or less. Section 12

Automatic enrolment does not apply if the employee is not required to have tax deductions made from his or her salary or wages under the PAYE rules. Section 14(1)(c)

Automatic enrolment does not apply to working partners. Section 14(1)(a)(i)

A new employee has 8 weeks in which to opt out of the scheme.

For more information see our FAQ KiwiSaver Automatic Enrolment and perhaps our FAQ KiwiSaver Exempt Employees.

Contribution rates are covered by Section 64.

All members of the scheme must contribute at least 4% of their gross wages, reducing to a minimum of 2% on 1st April 2009.

An employee can choose to contribute 8% of their gross wages.

An employee cannot contribute at a rate different from 4% or 8%, or 2% from 1st April 2009.

For more information see our FAQ KiwiSaver Contribution Rates.

An employee has 8 weeks from the start of employment to opt out of the scheme. Section 16

An employee opts out by filling in and giving a KS10 opt out form to either the employer or the IRD. Section 17(1)

The IRD is required to supply blank opt out notices to all employers as part of the KiwiSaver Information Pack. Section 17(2)(a)

You can download a KS10 from this website.

For more information see our FAQ KiwiSaver Opting Out.

Anyone can opt in to the scheme at any time. Section 33

An employee not covered by the automatic enrolment rules opts in by giving their employer a KS2 KiwiSaver Deduction Notice. Section 34(1)(b)

You can download a KS2 from this website.

Once opted in, an employee can never opt out. Section 36(2)

Having opted in, the employee cannot opt out in any future employment for the rest of their life. Section 36(1)(a)(ii)

For more information see our FAQ KiwiSaver Opting In.

All applications for a contributions holiday must be made to the IRD using a KS6 Contributions Holiday request form. An employee cannot ask their employer for a contributions holiday. Section 102

You can download a KS6 from this website.

A contributions holiday can be applied for at any time after having been in the scheme for a year. Section 102(b)

A contributions holiday can be applied for in the first year in cases of financial hardship. Section 102(a)

If the IRD grants a contributions holiday, the IRD advises the employer to stop making KiwiSaver deductions. Section 105(1)(b)

The IRD will advise the employer when a contributions holiday ends. Section 110

Whilst on a contributions holiday, an employee can resume, and then stop, their contributions by giving notice to their employer. Section 112

For more information see our FAQ KiwiSaver Contributions Holiday.

From 1 April 2009 the compulsory employer contribution increases from 1% to 2%, and will not increase in future years.

Employer contributions over 2% are no longer tax deductible. Any employer contribution over the 2% minimum is now liable to ESCT (Employer Superannuation Contribution Tax - formerly SSCWT) on the amount over 2%.

If an employee is not enrolled in KiwiSaver, the employer contributes nothing.

The $20 a week employer tax credit introduced on 1st April 2008 ceases on 31st March 2009.

This means from 1st April 2009 employers carry the full cost of the employer contribution.

This change, combined with employer contributions over 2% being no longer tax deductible, means the tax treatment of any employer contribution over 2% is no different to the amount being an increase in gross wages paid to the employee.

From 1st April 2009 the minimum employee contribution reduces from 4% to 2%.

All employees compulsorily enrolled from 1st April 2009 contribute at 2%.

This ships on Monday 9th February 2009. View the PDF Newsletter online.

From 1 April 2008 all employers must contribute a minimum of 1% for each employee enrolled in KiwiSaver.

If an employee is not enrolled in KiwiSaver, the employer contributes nothing.

Ace Payroll automatically handles this for pay periods on or after 1 April 2008 with no setup required.

For more information see our FAQ KiwiSaver Employer Contributions.

From 1 April 2008 employers will be partially reimbursed for their KiwiSaver contribution with a matching tax credit up to a maximum of $20 per week per employee.

The tax credit is claimed by the employer on the PAYE return IR345.

Ace Payroll automatically handles this for pay periods on or after 1 April 2008 with no setup required.

For more information see our FAQ KiwiSaver Employer Tax Credit.

From 1st April 2008 retiring and redundancy payments are not included in gross earnings when calculating KiwiSaver contributions.

This ships on Monday 11th February 2008. View the PDF Newsletter online.