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The minimum contribution rate for employers and employees has increased from 2% to 3% of gross salary or wages from the first pay period commencing on or after 1 April 2013.
You will need to change the contribution rates for existing KiwiSaver members if their contribution is 2%. If your employee currently contributes at either4% or 8% there is no need to change their contribution rate.
The default rate for new employees that are automatically enrolled into KiwiSaver has increased from 2% to 3% of gross salary or wages from the first pay period commencing on or after 1 April 2013.
All employer contributions paid to a superannuation fund, including KiwiSaver schemes and complying funds, for the benefit of an employee are liable forESCT (Employers Superannuation Contribution Tax). The exception to this is if the employee and the employer have agreed to treat some or all of the employer contribution as salary or wages under the PAYE rules.
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© McVeagh Fleming 2013
This article is published for general information purposes only. Legal content in this article is necessarily of a general nature and should not be relied upon as legal advice. If you require specific legal advice in respect of any legal issue, you should always engage a lawyer to provide that advice.
