All New Zealand residents and people entitled to live here permanently up to the age of 65 are eligible for KiwiSaver.
Government:
- Contributes $1,000 (tax free) when a member first joins.
- Pays annual member tax credit (for those 18 and over) of up to $1,042.86.
- Funds first home deposit subsidy through Housing NZ if criteria met.
- Exempts employer contributions from specified superannuation contribution withholding tax (SSCWT) up to a maximum of 2% of employee's gross pay.
Note: There is no Crown guarantee of KiwiSaver schemes or investment products of KiwiSaver schemes.
List of KiwiSaver Scheme Providers
Employers must:
- Give new employees and other staff who are interested an Employee information pack (KS3).
- Pass employee’s details to Inland Revenue to enable them to be enrolled.
- Deduct contributions from employee’s gross salary. (The Employer monthly schedule ( EMS) has been adjusted for KiwiSaver – download the payroll specifications for 2008 from the IRD website.)
- Deduct contributions from employee’s gross salary and pay these to IRD through the PAYE system
Compulsory Employer Contributions:
From 1st April 2008 employers must contribute to their employee's KiwiSaver scheme.
This compulsory contribution started at 1% of employee's gross salary or wages and has since been increased to 2% from 1 April 2009.
More details on the Employer’s role are available on the IRD website.Pay as you earn (PAYE) is the basic tax taken out of your employees' salary or wages. The amount of PAYE you deduct depends on your employee's tax code
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