As you entered the new employee’s start date, the KiwiSaver option New Employee Opting In will be activated and selected. A KS1 form (opting-in form) will automatically be filled out and sent to the IRD by SmartPayroll. You do not need to send any forms to IRD yourself, but you may wish the employee to sign a KS2 form so you can keep it for your records.
Note: If the employee does not want to opt in to KiwiSaver, leave the employee as showing New Employee Opting In for now.
New employee who wishes to opt out of KiwiSaver after 2 weeks
After 14 days the employee can opt out of contributing to KiwiSaver. In the Employee Details screen the option Existing Employee Opting Out should be selected and the opt-out date (2 weeks from the start date) can be entered, with the employee’s current bank account so that any previous KiwiSaver contributions can be returned to the employee’s bank account. Do not select the Existing Employee Opting Out option until 14 days have passed.
Once you have selected the option Existing Employee Opting Out and saved the details at the bottom of the screen, a KS10 (Opting Out form) will be automatically created and sent to IRD by SmartPayroll.
New Employee – but already opted in to KiwiSaver during previous employment
If this employee is already contributing to KiwiSaver (this employee started contributing at a previous job), choose the option New Employee but Existing KiwiSaver member(already opted in). The default setting for the Employee’s contribution is 3%, and it will be already set up in the Employee Payments area (the next screen to be viewed).
Note: The KiwiSaver Bank A/c area is for Existing Employees opting OUT. This is where the employee’s bank account would be entered, for any previously deposited funds to be returned! The rest of the KiwiSaver area can be skipped. For more information and help, get in touch today.