KiwiSaver is a voluntary savings scheme in New Zealand for employee savings for retirement funds. Inland Revenue is the central administrator of KiwiSaver. For complete information about KiwiSaver, see the New Zealand Inland Revenue website, https://www.ird.govt.nz/kiwisaver/.
Many employees can be automatically enroled in KiwiSaver. You can begin the process of automatic enrolment by giving a new employee a KiwiSaver information pack provided by Inland Revenue within seven days of the employee's starting work.
The information pack includes a KiwiSaver deduction KS2 form, with which the employee determines how much of their gross salary or wages (3%, 4%, 6%, 8%, or 10%) they want to contribute to the KiwiSaver Scheme. For KiwiSaver contributions, your pay is your salary or wages and includes allowances, bonuses, commission, extra salary, overtime, gratuities, and similar renumerations before tax. The KS2 KiwiSaver deduction form is also available in Workflow Administration > Role Privileges to add the form to employees for onboarding purposes. See the HR Administration Guide.
When the employee submits the KiwiSaver deduction KS2 form, but doesn't indicate a preferred rate, Dayforce uses the default rate of 3%. Employees contribute through wage deductions. The enrolment type and status populated by the submission of the KiwiSaver deduction KS2 form are as follows:
- If there are no previous submissions, the enrolment type is set to NE (New Employee). The status is set to AE (Auto-enrol)
- If there are previous submissions, the enrolment type is set to EE (Existing Employee). The status is set to NA (Not Applicable)
The KS6 Savings Suspension Request form and KS10 Opt-Out Request Form have been merged into one form titled KiwiSaver Opt-Out or Savings Suspension form. Employees requesting a savings suspension need to attach evidence of their approved request from the Inland Revenue Department. Alternatively, Administrators can create a new record for savings suspension or opt-out KiwiSaver membership. The enrollment type and status populated by the submission of the KiwiSaver Opt-Out or Savings Suspension form are as follows:
- If the employee is approved for a savings suspension, the enrolment type is set to EE (Existing Employee). The status is set to SS (Savings Suspension)
- If the employee is opting out of KiwiSaver, the enrolment type is set to NE (New Employee). The status is set to OT (Opted Out).
Employers contribute a compulsory minimum rate of 3% of an employee's gross salary or wages towards their employees' KiwiSaver savings - unless they're already contributing to another superannuation fund for their employees. An employer will also stop payments if their employee has a savings suspension, or if they’re given notice by us or their employee that contributions are to stop.
An employer can choose to make voluntary contributions to an employee's KiwiSaver account. Voluntary employer contributions include any contributions over and above the compulsory employer contribution rate.
In the Payroll > KiwiSaver and Superannuation screen in People, you can view and update the employee's KiwiSaver and Superannuation contribution fund details.
KiwiSaver Fields
Employee KiwiSaver records have the following fields:
| Parameter | Description |
|---|---|
| General (Section) | |
| Effective From | Field: The start date when Dayforce begins the KiwiSaver employee record such as for a savings suspension enrollment type. When you add a record, the application enters the current date by default, and you can edit it if needed. |
| Effective To | Field: The optional end date to indicate when Dayforce ends the employee KiwiSaver record. For example, when the application stops processing employee contributions as specified in the Employee Contribution Rates (%) field. |
| Enrolment Type |
Drop-down list containing the following enrollment types:
The option that you select determines which settings of the employee's KiwiSaver record are editable. |
| Status |
If the Enrollment Type drop-down list has the Existing Employee option selected, the following additional option becomes available:
If the Enrollment Type drop-down list has the New Employee option selected, the following additional option becomes available:
If the Enrollment Type drop-down list has the Existing Employee Auto-enrol KiwSaver option selected, the following additional option becomes available:
You can select NA - Not Applicable when the status isn't applicable for the enrollment type. |
| Savings Suspension Reason |
Is enabled only when the SS - Savings Suspension option is selected in the Status drop-down list. Optionally, enter a description as to why the savings is suspended. An employee only needs to provide a reason if they are a member for less than 12 months of KiwiSaver. On the generic form the employee submits to the IRD, there is no field for reason. In addition, when an employee submits the Savings Suspension form in Dayforce, there is no field visible at this time for employees to add a reason. When the administrator attempts to update records on the employee’s KiwiSaver screen they will continue to receive an error preventing them from making changes until a reason is provided. For those two reasons, this field is optional and at the employers discretion if they want to capture additional information on a saving suspension reason. KiwiSaver records have an effective from and effective to date. At the end of the savings suspension, you must end date the saving suspension record. You can either re-enable the old active record or it is recommended you create a new record for the employee to commence KiwiSaver deductions. |
| Late Opt-Out Reasons |
Is enabled only when the OT - Opted Out option is selected in the Status drop-down list for an Existing Employee enrollment type. Optionally, select a late opt-out reason from the drop-down list. This field is only required if the employee opts out after 56 days. |
| Other Late Opt-Out Reason |
Is enabled only when the OT - Opted Out option is selected in the Status drop-down list for an Existing Employee enrollment type AND OTHR - Other explanation was selected in the Late Opt-Out Reasons drop-down list. |
| Employee Contribution Rate (%) | Drop-down list to select one of the five contribution rates for the employee before-tax: 3%, 4%, 6%, 8%, or 10%. The default employee contribution rate is 3%. |
| Employer Compulsory Contribution Rate (%) | When a record is identified as being a Savings Suspension, the administrator can capture a value in the Employer Compulsory Contribution Rate and Employer Voluntary Contribution Rates fields, allowing the employer to make KiwiSaver payments. |
| Employer Voluntary Contribution Rate (%) | When a record is identified as being a Savings Suspension, the administrator can capture a value in the Employer Compulsory Contribution Rate and Employer Voluntary Contribution Rates fields, allowing the employer to make KiwiSaver payments. |
| Employer Superannuation Contribution Tax (ESCT) (Section) | |
| ESCT Rate (%) |
Drop-down list to select the ESCT withholding tax rate as a percentage (that is, 10.5, 17.5, 30, 33.0, 39.0, or System Calculated) which is deducted from employer contributions to employees’ KiwiSaver on voluntary funds. The correct rate of ESCT to apply to each employee is based on the employee’s marginal tax rate. If the employer is making contributions while the employee is on a Savings Suspension, Dayforce keeps the ESCT rate as indicated in this field. |
| ESCT Effective From | The start date when Dayforce begins the ESCT rate calculation. |
| ESCT Effective To | The end date when Dayforce stops ESCT rate calculation. |
Superannuation Contribution Funds
Employee superannuation contribution fund records have the following fields:
| Parameter | Description |
|---|---|
| Superannuation contribution type | Field: |
| Effective From | Field: The start date when Dayforce begins the employee super contribution. When you add a record, Dayforce enters the current date by default, and you can edit it if needed. |
| Effective To | Field: The optional end date to indicate when Dayforce ends the employee super contribution. |
| Fund name |
Field: The employee's superannuation fund name. |
| Contribution calculation type |
Field: |
| Contribution value | Field: |
| Membership number |
Field: The employees' superannuation account number. |