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KiwiSaver Opting In
- 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 KiwiSaver Deduction Notice. Section 34(1)(b)
- 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)
- All KiwiSaver related employee maintenance is performed from the F3 Employee Maintenance screen.
- Note the new KiwiSaver tab.
- Also remember this screen can be accessed whilst calculating pays, thus allowing changes to be made "on the fly".
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Certain persons may opt in
A person may opt in at any time provided
(a) the person is less than the New Zealand superannuation qualification age; and
(b) the person is not already a member of a KiwiSaver scheme; and
(c) the person is not subject to the automatic enrolment rules.
How to opt in
(1) A person who wishes to opt in may do either or both of the following:
(a) contract directly with a provider of a KiwiSaver scheme to become a member of a KiwiSaver scheme:
(b) if the person is an employee, give his or her employer a KiwiSaver deduction notice.
(2) A person who opts in by giving his or her employer a KiwiSaver deduction notice must give the employer
(a) his or her name and address; and
(b) his or her tax file number.
(3) The employer must give notice to the Commissioner of the information that the employee gives the employer under subsection (2), if the employer is satisfied that the employee is eligible to opt in under section 33.
(4) That information must be given no later than the time that the employer is next required to deliver an employer monthly schedule to the Commissioner under section NC 15 of the Income Tax Act 2004.
Opting in by persons under 18
(1) A person who is less than 18 years and who wishes to opt in may only opt in in accordance with section 34(1)(a).
(2) If a provider of a KiwiSaver scheme accepts a person who is less than 18 years as a member of the KiwiSaver scheme, the contract between the provider and the person under 18 years must be treated, for the purposes of the Minors' Contracts Act 1969, as if the person were aged 18 years. Compare: 1992 No 141 s 63A
Effect of opting in by employees
(1) An employee who opts in
(a) becomes liable in accordance with subpart 1 of Part 3 to automatic deduction of contributions
(i) from the salary or wages paid by the employer to whom the opting in relates; and
(ii) from the salary or wages paid in respect of any other new employment that the employee starts after opting in; and
(b) must become a member of a KiwiSaver scheme under subpart 2 of this Part.
(2) The employee must continue to be a member of a KiwiSaver scheme until the earliest of
(a) the KiwiSaver end payment date referred to in clause 4 of the KiwiSaver scheme rules (which relates to lock-in of funds); or
(b) the provider terminating the employee's membership of a KiwiSaver scheme under clause 4(5) of the KiwiSaver scheme rules (which relates to zero account balances); or
(c) the date of withdrawal or transfer to a foreign scheme in the case of permanent emigration under clause 14 of the KiwiSaver scheme rules.
(3) The employee continues to be liable for automatic deduction of contributions in accordance with subsection (1)(a) in respect of salary or wages until the earliest of
(a) the dates referred to in subsection (2); or
(b) the date on which section 62 (other than section 62(a)) otherwise applies to that payment of salary or wages.
Effect of opting in by persons other than employees
A person other than an employee who opts in must continue to be a member of a KiwiSaver scheme until the earliest of the events in section 36(2).
More KiwiSaver Information
| KiwiSaver Automatic Enrolment
Every person that starts a new job is automatically enrolled in the scheme more.. | KiwiSaver Exempt Employees
Under 18, over 65, and casual employees are exempted from automatic enrolment more.. |
KiwiSaver Contribution Rates All members must contribute 3% of gross wages and may contribute 4% or 8% more.. |
| KiwiSaver Opting Out An employee has 8 weeks from the start of employment to opt out of the scheme more.. | KiwiSaver Opting In Anyone can opt in to the scheme at any time. Once opted in, an employee can never opt out more.. | KiwiSaver Contributions Holiday All applications for a contributions holiday must be made to the IRD using a KS6 Contributions Holiday request form more.. |
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KiwiSaver Employer Contributions All employers must contribute 3% for each employee enrolled in KiwiSaver more.. |
ESCT - What Is It? A description of Employers Superannuation Contributions Tax and how it is paid more.. |
| ESCT Tax Rates Employer KiwiSaver contributions are taxed at the top employee marginal tax rate, based on estimated annual earnings more.. | ESCT on IRD Monthly Returns I am doing my monthly return for IRD and the ESCT figure does not show on my IR348 return. What is wrong? more.. |
KiwiSaver Contributions Report The KiwiSaver Contributions Report keeps track of contributions, reversals and refunds more.. |
| KiwiSaver Reversals and Refunds Use the Reversals and Refunds Wizard to reverse and optionally refund KiwiSaver deductions to employees that were automatically enrolled, and then opted out of KiwiSaver more.. | Total Remuneration Use when an agreed salary package includes KiwiSaver employer contributions more.. |
| KiwiSaver Scheme Providers The linking of employees to scheme providers does not happen at the payroll end of the process more.. |
Exempt Schemes How to disable the deduction of compulsory employer KiwiSaver contributions for employees in exempt KiwiSaver schemes more.. |
| Ace Payroll FAQ Contents All the most common Ace Payroll questions grouped by categories in a short table of key words more.. |
Ace Payroll Frequently Asked Questions All the most common questions we are asked at Ace Payroll listed in a question format and grouped by category more.. |
KiwiSaver Forms
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