KiwiSaver is a voluntary, work-based retirement savings scheme. Independent KiwiSaver providers run the savings schemes. KiwiSaver is for all New Zealand citizens and permanent residents living or normally living in New Zealand. Employees should be automatically enrolled in KiwiSaver if they are:
- Eligible to be enrolled
- Starting work with a new employer
- Aged between 18 and 65
intelliHR can make this process easier through the creation of a default KiwiSaver remuneration component that can be easily added to all relevant employees.
This article will explain how you can set up the Kiwisaver remuneration component and how this is subsequently added to the employee's record.
This article covers:
- Creating the KiwiSaver remuneration component
- How to add KiwiSaver to employee records
- Glossary of Terms
- Useful Links
Creating the KiwiSaver remuneration component
To ensure the consistency of your records and streamline the process of data entry for admins entering any new employees it is recommended that you create default remuneration components for KiwiSaver.
There is an employee contribution and an employer contribution to KiwiSaver and therefore you will want to create two default remuneration components. To do this follow the steps below:
Create the KiwiSaver (Employer Contribution)
1. Navigate to Settings >> Default Remuneration Components
2. Click Create Component
3. Add a Name (KiwiSaver - Employer Contribution)
4. Select the Attribute Type - (Addition to Total for KiwiSaver)
5. Select the Value Type - (Percentage for KiwiSaver)
If you select Percentage, you will be prompted to enter a Default Percentage. (3% is the minimum - this can be amended on the individual employee's record if required)
6. If you wish for this Default Remuneration Component to be automatically added to all new job records select the checkbox.
7. Save
Create the KiwiSaver (Employee Contribution)
1. Navigate to Settings > Default Remuneration Components
2. Click Create Component
3. Add a Name (KiwiSaver - Employee Contribution)
4. Select the Attribute Type - (Breakdown for KiwiSaver - Employee Contribution)
5. Select the Value Type - (Percentage for KiwiSaver)
If you select Percentage, you will be prompted to enter a Default Percentage. (3% is the minimum - this can be amended on the individual employee's record if required)
6. If you wish for this Default Remuneration Component to be automatically added to all new job records select the checkbox.
7. Save
How to add KiwiSaver to employee records
KiwiSaver can be added to the employee records either at the point of creation or separately at any point after the employee has been created.
Adding KiwiSaver when an employee is added to intelliHR
1. Create Person (Click here to review the process)
2. Add the releavnt person details
3. Continue to create job
4. Under Remuneration Schedule add the two KiwiSaver remuneration components as seen in the screenshot below.
Adding KiwiSaver to exisiting employee records
1. Navigate to the Jobs tab of the employee
2. Update Job
3. Enter the effective date from when KiwiSaver will be added
4. Check the Remuneration Schedule
5. Next
6. Add the employer and employee contributions to the remuneration schedule
7. Next
8. Review the changes and Confirm
Glossary of Terms
- Additions - An amount or percentage to be added to either the base or total salary (e.g. Superannuation)
- Breakdowns - A salary component contributing an amount or percentage to the base or total salary (e.g. salary sacrifice)
- Default Remuneration Components - Both addition and breakdown components can be created by a System Administrator in Settings, and either automatically added to each new person created on intelliHR or made available at the point a remuneration schedule is added to an employee record.
Useful Links
For further information on KiwiSaver and how this applies to your business please click on the link below to review the information on New Zealand's government website: