Summary

In this example, an employee opted out of KiwiSaver so you need to reverse her KiwiSaver transactions in a closed pay sequence that you have not reported to Inland Revenue yet.

This topic explains the final step in this process.

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

Process

When you add the reversal transactions, you must enter the following values: Transaction Total, Recalculate, PAYE amount (to reverse ESCT).

1. Open an Manual pay and adjust its accumulators to match the closed pay sequence.
2. Access the Manual pay in Transaction View.
3. Select the employee's Code cell.
4. Enter the following reversal transactions for the employee:

   Note: Because Recalculate = "No", you do not have to enter Quantity and Rate values, but they will help identify the transaction that you are reversing.

   463 - KiwiSaver - SS - %
   Field	Value
   Details tab
   Quantity	-1000.00
   Rate	5.0000
   Transaction Total	-47.62
   Recalculate	No
   Tax overrides tab
   PAYE amount	-2.97
   Note: The PAYE amount is the ESCT reversal.
   813 - KiwiSaver - Employee %
   Field	Value
   Details tab
   Quantity	-1000.00
   Rate	4.0000
   Transaction Total	-38.10
   Recalculate	No
   815 - KiwiSaver - SS - %
   Field	Value
   Details tab
   Quantity	-1000.00
   Rate	5.0000
   Transaction Total	-47.62
   Recalculate	No

   Process the employee's pay.

5. Check that the employee's reversal amounts are the opposite of her original KiwiSaver transactions in the closed pay sequence.

   Code	Description	Tax Total	Total
   463	KiwiSaver - SS - %	-2.97	-47.62
   (463)	(Contra) KiwiSaver - SS - %		47.62
   813	KiwiSaver - Employee %		38.10
   815	KiwiSaver - SS - %		47.62

   Exit Transaction View.

6. Run the Process Pay command for the employee's Manual pay.
7. Close the employee's Manual pay.
8. Check that the employee's Payroll | Payroll | Accum tab | Employee super (Total) and Employee KiwiSaver values are correct.

   In this example, you completely reversed all these values so they are now zero. If the employer and employee make non-KiwiSaver contributions, then the Employee super (Total) and Employer super (Total) values may not equal the Employee KiwiSaver and Employer KiwiSaver values.

   Important: When you run the next PGPRTAXA020 - Employer Monthly Schedule (IR348) report, ensure that you include the Manual pay that you used for the reversal.

See also

KiwiSaver (NZ)

Reversing KiwiSaver Transactions with ESCT (NZ)

Step 1: Check Employee's Accum tab Values

Step 2: Check Employee's KiwiSaver Transactions