You must make contributions to your employee’s KiwiSaver scheme or complying fund. They are called Compulsory Employer Contributions (CEC).
The lowest rate for your contribution is 3% of your employee’s gross salary or wages.
Set up an Employer Contribution for the Kiwi Saver
Go to Setups, Payroll, Employer Contributions, Maintain.
Enter a new Contribution Code and Description.
Select Type: % of Calculated.Enter the Percent - 3.00 Fixed.
Select the Show rate on Pay advice, Show on Pay advice, Show YTD on pay advice checkboxes.Set ESCT Calculation to be Inclusive.
In the Calculation Basis tab- this should be set to All Income types with the selection type as Include as per below:
For KiwiSaver schemes, gross pay is total salary or wages including bonuses, commission, extra salary, gratuities, overtime.
Any other remuneration of any kind before tax, for example taxable benefit allowances.
Select your GL Posting Details and Mulitiple GL Dissections tab settings as required
Click Accept (F9) to save the new Employer Contribution code.
Set up a Kiwisaver Deduction
Go to Setups, Payroll, Deductions, Maintain.
Enter a new Deduction code and Description.
Select the Type value of Kiwisaver (NZ).
Select the Tax Status as After Tax.
Select the EMS Tax Report Code as Include in EMS Tax Report totals.
Enter the Percent decided by your employee.
📌Note: The rate you deduct employee contributions can be either 3%, 4%, 6%, 8% or 10% of their gross pay. Your employee tells you which rate to use on their KiwiSaver deduction form – KS2.
If an employee does not choose a contribution rate, use the default rate of 3%.
Select the checkboxes: Show rate on Pay advice, Show YTD on Pay advice.
On the Calculation Basis tab, set to All Income types with the selection type as Include.
📌Note:some after tax allowances may need to be excluded.
Select your Liability Account and Mulitiple GL Dissections tab settings as required.
Click Accept (F9) to save the new deduction code.