KiwiSaver Employer Contributions


From 1 April 2009 some changes are being made to KiwiSaver.
  • The minimum employee contribution rate reduces to 2% of a member's gross pay.
  • The compulsory employer contribution (CEC) increases to 2% and won't increase further in future years.
  • The employer superannuation contribution tax exemption (ESCT) is capped at the compulsory employer contribution rate of 2% from 1 April 2009. (That is equivalent to 2% of the employee's gross salary or wages and is subject to KiwiSaver contributions being made by your employee.)
  • The employer tax credit (ETC) is removed.
  • The fee subsidy is removed - this change affects KiwiSaver members, not employers.
  • The KiwiSaver Act is amended and the Employer Relations Act amendment relating to KiwiSaver is repealed so that gross pay can't be reduced for staff who join KiwiSaver.

Inland Revenue's website has more information: KiwiSaver changes from 1 April 2009

1. Current KiwiSaver defaults, used when adding a new person:
New Person
     
Default KiwiSaver employee deductions 2.0% KSE (Default KSE is entered)
Default KiwiSaver employer contributions 2.0% KSR (Default KSR is entered)
2. You may need to reduce the contribution rates for existing KiwiSaver members if they notify you that they would like to change their contribution rate to 2%. You should ask your staff for written confirmation of their intention to reduce their contribution rate - ask them to complete a new KiwiSaver deduction form (KS2). You do not need to send this form to Inland Revenue.
3. There are no KiwiSaver members who require increasing to minimum 2% Employer Contributions.
4. Check Other KiwiSaver Members who do not require minimum 2% Employer Contributions to KiwiSaver (2 people)
No changes will be made to these people.
5. For remittance periods starting from 1 April 2009, Employer Tax Credit (ETC) is no longer calculated and the entries are removed from the IR345 Remittance.