If an employee begins temporary employment, but then the employment continues beyond 28 days, the automatic enrolment rules will apply. If each employment period is 28 days or less, then the automatic enrolment rules will not apply. However, as soon as they work continuously for the employer for more than 28 days, regardless of whether its one engagement or more, the automatic enrolment rules will apply.
A temporary employee who does not qualify for automatic enrolment can still choose to opt-in to KiwiSaver, either by giving their employer a deduction notice or contracting with a KiwiSaver scheme provider directly. If a KiwiSaver member who begins temporary employment requests an employer to make deductions, the employer will be obliged to do so and pay compulsory employer contributions for that employee. There is no automatic enrolment for existing employees, but there is still a range of duties that employers must perform in relation to KiwiSaver.
If an existing employee asks their employer for information on KiwiSaver, or if an existing employee gives their employer a KiwiSaver deduction notice having opted-in , the employer must provide the employee with a KiwiSaver information pack for employees KS3.
In relation to employees who have opted in, the employer must provide them with the information pack within 7 days of receiving the deduction notice. The employer must provide this information to the IRD in their next Employer Monthly Schedule ie the 20th day of the following month.
Employers must keep records of which of their employees are KiwiSaver members, the contribution rate for each member, notifications of contribution holidays and copies of opt-out forms. Records should be kept for at least 7 years after the employee has left the employment.
While it would have been open to the parties to include reference to a numerical amount, that degree of specificity is not required by section B 4 b.
The IRD holds employer contributions until payment is cleared by the bank, after which they are passed on to the relevant KiwiSaver scheme provider. It will therefore reduce the work load of payroll staff. Avoiding the auto-enrolment provision will also benefit employees, as it will mean that they can make a conscious decision, in their own time, whether or not to join KiwiSaver.
Whatever decision the employer makes about having exempt status, it should also put in place a policy to actively encourage employees to make a decision on KiwiSaver, i. The alternative scheme must be a registered superannuation scheme a stand-alone scheme or through a master trust that applied before 6 October It must have the following features:. An employer can satisfy the exempt status by the use of more than one scheme and by the use of a master trust.
To become exempt, an employer had to apply to the Financial Markets Authority. An employer needed to satisfy the Financial Markets Authority that it complied with the requirements. The employer may also need to show that it continues to meet the requirements each year.
The Financial Markets Authority will maintain a register of exempt employers. If the exempt employer ceases to comply with the requirements, the Financial Markets Authority or the employer can apply for the employer to be removed from the exempt register.
The personal contributions are refunded direct to the employee. To determine a new employee's ESCT rate, the employer should estimate their total salary or wage all taxable allowances including the employers KiwiSaver contributions that will be made to the employee in the current tax year. Accommodation and housing allowances are exempt from KiwiSaver contributions but they are part of the total gross pay to establish the ESCT rate.
When you hire a new person, sorting out KiwiSaver needs to be on your list of things to take care of, along with other payroll details. Within seven days of a new employee starting, you need to give non-members information on joining, or a way to opt-out if they don't want to stay in KiwiSaver, including:.
If your employee doesn't want to give you some information, such as their age, it's not a problem. This amount is in addition to their salary or wages. All employers must pay this contribution, unless they are already contributing to a complying superannuation fund. Some employers treat this employer contribution as part of the employee's total package when negotiating their pay. For both members and non-members who want to join , you need to advise Inland Revenue of their KiwiSaver preferences, using the KiwiSaver deduction form KS2.
This tells both you and Inland Revenue how much of their salary or wages they want to contribute to KiwiSaver. Keep a copy of this form for your records. KiwiSaver members can select and change providers whenever they choose. When they first join KiwiSaver, if they do not select a provider they will be allocated to one of the nine government appointed default providers.
As an employer you can select a preferred provider for your employees. This means that if they don't select a provider of their own, they will become a member with that provider. If you have a preferred provider you need to:. The benefit of having a preferred provider is you know where your employee will end up if they don't make a choice.
Also the provider may offer additional services to your workplace, such as financial literacy workshops. Most online or cloud-based New Zealand-based payroll packages help you take care of all the KiwiSaver details. They also help with other complex areas, like holiday pay, student loan deductions and more. Online payroll systems often charge a small fee per employee, rather than a big licensing fee upfront.
Have a chat with your accountant or bookkeeper about a system that will be right for your business. They can save a lot of time and stress, and help avoid costly mistakes. You could also check out Xero's guide to running payroll. Inland Revenue has many resources on KiwiSaver for employers , and they're very helpful on the phone. Their employer enquiry number is Find out more. This page is intended to provide general information of an educational nature only.
0コメント