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Meeting your KiwiSaver obligations
Despite the KiwiSaver Act 2006 having been in force for more than a decade now, it is still not uncommon for us to find that some employers are not properly complying with the requirements of the Act.
Some of the key obligations for employers are:
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You must automatically enrol any new employee who is not an exempt employee. The automatic enrolment rules do not apply if the employment is truly casual; if the employment is as a casual agricultural worker (which is defined); if the employment is for a fixed term of 28 days or less; and in some other specific situations; The automatic enrolment rules apply even if the employee advises he or she does not want to be in KiwiSaver. An employee is not permitted to opt out of KiwiSaver at the commencement of employment, and is only able to do so in the period beginning on the 13th day after the start of employment and ending on the 55th day after the start of employment; You must provide each new employee with a KiwiSaver information pack within 7 days of the commencement of employment; or of the employee notifying you on a change in their KiwiSaver status
(for example, a decision to opt in); or if a pack is requested by the employee. You can be subject to a penalty if you do not comply with this obligation. Information packs are available on www.kiwisaver.govt.nz; • The compulsory employer contributions must be paid additionally to the employee’s salary or wages, unless you and the employee have specifically agreed in the employment agreement that the remuneration is inclusive of the compulsory employment contribution (and ESCT); • You must pay the KiwiSaver contributions (both employee and employer) as part of the monthly
PAYE paid to IRD; • You must give certain information to the
Commissioner of IRD about the employee. Employees also have obligations, including giving you a completed KiwiSaver form (available on the website) which includes information about the KiwiSaver status of the employee.
Danny Jacobson and Trudy Marshall are Partners at Employment Lawyers Tauranga and they specialise exclusively in employment law. They operate our Employment Helpline for NZCB members: phone 07 928 0529 for 10 minutes free advice on any employment related issues. (The above is by its nature general, and is not intended to be a substitute for legal advice.)
