Employers must give all new Employees, and any existing Employees who ask for information, the Employee Information (KS3) factsheet. This can be downloaded from the IRD Website.
The IRD has provided the following summary will help Employers correctly determine if the Employee can join KiwiSaver.
Eligibility to join KiwiSaver
To be eligible to join, the Employee must be:
- aged 18 or over, and under the age of 65 (currently the age of eligibility for New Zealand Superannuation)
- living, or normally living, in New Zealand
- entitled to stay in New Zealand indefinitely, this includes (but is not limited to) holders of New Zealand passports, Australian passports and residence visas
- an Australian or New Zealand citizen living in New Zealand.
An Employee is not eligible to join if they:
- hold a temporary entry class visa, or a limited-purpose visa;
- are aged 65 or over.
- Some Employees may be eligible to join but do not meet the automatic enrolment rules.
New Employees
Give each new Employee (who is subject to automatic enrolment) a copy of:
- Employee Information (KS3)
- KiwiSaver deduction form (KS2)
- New Employee Opt-out Request (KS10).
- These can be downloaded from the IRD website.
When the Employee gives their Employer their completed KS2, the Employer completes the KiwiSaver Employee Details (KS1) form and sends it to the IRD at the same time as the next Employer Monthly Schedule (EMS/IR348). Deductions can be made from the Employee's first pay, even if they intend to opt out. When starting deductions, Employers must also pay compulsory Employer contributions and Employer superannuation contribution tax (ESCT) in relation to the Employee.
The new Employee will advise the Employer if they are already a member on their completed KS2. If they're already a member, the start making deductions from their first pay at the rate nominated by the Employee, or the minimum deduction rate of 3%, whichever is greater.
If the Employee doesn't advise you that they're an existing KiwiSaver member, follow the new employee rules.
Existing KiwiSaver members can't opt out. If you have a new Employee who is an existing member, and they don't want deductions from their pay, they must apply for a contributions holiday. Start making deductions and paying compulsory Employer contributions and ESCT until the Employee gives you a copy of their contributions holiday letter.
If the new Employee is already a member, and is already on a contributions holiday, they still need to give you a completed KS2. They must also give you a copy of their contributions holiday letter.
Start making deductions and pay compulsory Employer contributions and ESCT from the next pay after the end of their contributions holiday. Use the rate nominated by the Employee, or the minimum deduction rate of 3%, whichever is greater.
Existing Employees
An existing Employee needs to give you a completed KS2 if they want to join KiwiSaver. You'll then send IRD a completed KS1 showing their details with your next EMS. These Employees can't opt out because they've made a decision to join KiwiSaver
Source: Inland Revenue Department.