Employee Super Funds - Deductions (New Zealand)

Overview

The Deductions tab allows you to personalise employee contributions. When a superannuation payroll rule generates an Employee Super Funds deduction in Transaction View, it uses the Employee Super Funds | Deductions tab field values to determine the transaction rate. However, payroll rules cannot generate transactions for a deduction if the relevant Employee Super Funds | Deductions tab field is empty or no corresponding deduction code is specified in the associated Superannuation Fund | Deductions tab.

Important: If any of these fields do not have an allowance code specified in the associated Superannuation Fund | Deductions tab, then that field is disabled.

Fields

Employee (%):

Value of the employee’s percentage contribution. If you copy across defaults, then the Employee (%) value is copied from the Superannuation Fund record.

Important: This Employee (%) value overrides the Superannuation Fund | Deductions tab | Employee (%) value. If the Employee (%) value in the Employee Super Fund is zero or blank, the payroll rule will not generate any employee deduction transactions.

Employee ($):

Value of the employee’s fixed contribution to this fund.

Salary Sacrifice Ded (%):

Percentage amount of employee’s salary sacrifice for this fund.

Note: The Deductions tab | Salary Sacrifice Ded (%) value should match the Allowances tab | Salary Sacrifice All (%) value.

Salary Sacrifice Ded ($):

Fixed amount of employee’s salary sacrifice for this fund.

Note: You should not use a mixture of percentage and dollar salary sacrifice values in an Employee Super Funds record. However, for non-KiwiSaver funds, you can use dollar values in one Employee Super Funds record and percentage values in another Employee Super Funds record for the same employee.

Other Member (%):

Percentage amount of the employee’s contribution to this fund on behalf of another member.

Other Member ($):

Fixed amount of the employee’s contribution to this fund on behalf of another member.

Important: The Other Member fields are disabled when you create an Employee Super Funds record for a KiwiSaver Superannuation Fund. You cannot use Other Member deductions with a KiwiSaver superannuation fund.

Minimum employee contribution rate

Total contributions should be greater than or equal to the Minimum employee contribution rate. However, contributions can be made through a KiwiSaver fund and complying funds so PayGlobal cannot force the minimum contribution rate. Employers should ensure that employees' total contributions meet the minimum rate.

Maximum employee contribution rate

If you try to save an Employee Super Funds record and the Deductions tab | Employee (%) value is greater than the KiwiSaver | Maximum employee contribution rate, then a warning message appears and you cannot save the record.

If the Employee Super Funds record contains a Deductions tab | Employee ($) value, then PayGlobal calculates the percentage of the employee's base earnings that the Employee ($) value represents. It then adds this representative value to the Deductions tab | Employee (%) value. If the total value is greater than the KiwiSaver | Maximum employee contribution rate, then a warning message appears. The employee contribution must not be greater than the Maximum employee contribution rate. PayGlobal can accurately check the Employee (%) value for one KiwiSaver or complying fund, but the check for the Employee ($) value cannot be completely accurate because the employee's actual earnings are unknown.

Process Pay

When you process pays for KiwiSaver employees, PayGlobal uses the Minimum employee contribution rate and Maximum employee contribution rate to check KiwiSaver contributions.

If an employee's KiwiSaver contributions are less than the minimum, then an error message appears in the resultant audit log, but pay processing succeeds.
If an employee's KiwiSaver contributions are greater than the maximum, then an error message appears in the resultant audit log and pay processing fails.