Summary

Note: This command appears in New Zealand databases only.

The New Zealand government requires that both employees and employers contribute the minimum contribution percentage amount to the employee's KiwiSaver schemes and complying superannuation funds.

From the first pay period starting on or after 01/04/2013, the minimum contribution rate for employers and employees is 3%.

If the employer and employee already meet the minimum contribution requirements, then no changes are required. However, if the employer's or employee's contributions do not meet the minimum requirements, the relevant Employee Super Funds records need to be updated. To ensure these changes do not come into effect until the required date and to follow "best practise", you need to:

• End date Employee Super Funds records that contain the old employer and employee contribution rates.
• Create new Employee Super Funds records that contain the new employer and employee contribution rates.

  Further Reading: See the New Zealand Superannuation and Salary Sacrifice manual on the website.

KiwiSaver Update Tool

PayGlobal has developed an update tool that automates the process of updating the employer's and/or employee's contribution when the required minimum is not met. The KiwiSaver Update Tool command:

• Simplifies and speeds up the process of updating KiwiSaver and complying fund Employee Super Funds records to meet legislative requirements for employer and/or employee contributions.
• Identifies employees that need to have their employer contributions updated to meet the required minimum.
• Allows you to make the necessary changes to Employee Super Funds records before the implementation date.

  Important: You can run the KiwiSaver Update Tool for dates in unopened pay sequences only.

• Can be used for future changes in the minimum employer and/or employee contribution rate.

The KiwiSaver Update Tool command is displayed only for users who have the Supervisor checkbox ticked in their User Profiles record.

Important: The KiwiSaver Update Tool does not update the following values:
- Superannuation Fund | Allowances tab | Values (%) | Employer (%)
- Superannuation Fund | Deductions tab | Values (%) | Employee (%)
- KiwiSaver | Details tab | Minimum employer contribution rate.
- KiwiSaver | Details tab | Minimum employee contribution rate.

You must manually edit these values in the Superannuation Fund and KiwiSaver records.

RSS Superannuation Funds

The minimum employer contribution rate may be met by contributions to other superannuation funds that met all the following conditions:

• Superannuation fund is a registered superannuation scheme.
• Employer makes specified superannuation contributions to the employee with their salary or wages.
• Employee is employed by the employer before 1 April 2008.
• Employer provides the employee access to the scheme as at 17 May 2007.
• Employer agreed to make the specified superannuation contributions to the employee for the registered superannuation scheme before 1 April 2008.
• Specified superannuation contributions vest in the employee immediately after the contributions are paid.

In PayGlobal, this type of Superannuation Fund record has KiwiSaver status = "RSS".