Overview

There are a number of scenarios whereby an employee may have ended up being enrolled in KiwiSaver when they started first started working for you, if they don't want to be in KiwiSaver and they are eligible to opt-out, then employees need to provide you with a signed KiwiSaver opt-out request form (KS10 2020) - see https://www.ird.govt.nz/kiwisaver/kiwisaver-individuals/opting-out-of-kiwisaver/opt-out-of-kiwisaver

IR expect this process to be completed between the end of week 2 and week 8 of the employee starting work. That is on or after day 14 and on or before day 56. The reason for this is that, the IR require a new relationship record to exist at their end before they can receive an "Update" event. Meaning, that your Employment Details file/"Create" submission must be successfully received before you complete the Opt-out process, otherwise the Opt-out submission may receive an error response code.

The PayGlobal Gateway solution helps you to complete this process by way of an "Update" submission.

Key Points

• There is no bulk opt-out run feature, each employee that is opting out must be actioned separately.
• Your employee's latest KiwiSaver State record must represent the employee is 'Opting Out'. If it doesn't you will need to add a new record to correlate with the KS10 form.
• Employees with an IRD number of ‘000 000 000’ will fail to send.

  Each new employee must be reported to IR using their own unique IRD number as this prevents issues with data matching duplication of employment records on the IR side.

• PayGlobal does not consolidate employees by their IRD number, therefore if an employee has multiple employee codes for the same employer you will have to report changes on this employment relationship via direct entry in myIR.

   

Check Employee is setup for Tax reporting

1. Go to Employees
2. Open the Employee record
3. Go to Payroll, Tax tab and check that the Print on EMS field is set to Yes
4. Save changes if necessary

Check Employee KiwiSaver State records

1. Go to Employees
2. Open the Employee record
3. Go to Payroll, KiwiSaver States tab and ensure that the employee has a recent Opt Out record. The fields must be completed as follows:

   State = Out

   Event = "Opt out via employer" or "Opt out via IRD"

   Use "Opt out via employer" when the employee gives you the KS10 form directly.

   Use "Opt out via IRD" for employees where either IR has informed you the employee opted out, either via letter, email or visual confirmation in your MyIR business account.

   Date opt out notice signed = Matches date from the employee's KS10 form. Note: It is a record keeping compliance obligation as much as it is reporting obligation to store this date.

   Late reason = You must only select a reason if the employee is being opted out on/after day 56 of their employment. If you select 'Other' you can use the Comments field to explain the lateness.

4. Save changes if necessary.

Send opted out employee data to IR

1. Go to Employees
2. Open the Employee record
3. Right-click the View Employee's form
4. Click the option Report KiwiSaver Opt Out Employment to IR

   This menu option is only active for employees where Print on EMS field is set to Yes.

   Once you've clicked this option PayGlobal returns a message indicating whether the employee opt out details could and have been submitted to IR.

   Further tracking of this submission can now be monitored via the Payday Reporting Manager Tool

5. Repeat steps 2-4 for all other employees who have provided you with a signed KiwiSaver opt-out request form (KS10 2020).

Reported Data

The reported data is much the same as the ED "Create" with the addition of the KS Opt-out data.

Details sent to the IR include employee identification data:

• IRD number
• Name (same as reported on your EI, so a truncated version of firstnames and lastname)
• Date of birth
• Employment Start Date
• Address
• Email
• Tax Codes

KiwiSaver Opt-out data:

The date and reason come from the KiwiSaver State record

• Opted Out Signature Date
• Late Opt Out Reason
• Refund bank account - PayGlobal uses the employee's primary bank account.
• Refund bank account name - PayGlobal uses primary bank account name field.