For employers
KiwiSaver is a new voluntary work-based savings scheme, run by Inland Revenue using existing employer monthly schedule and payment collection processes.
From 1 July 2007, all eligible new employees aged between 18 and 65 will be automatically enrolled in KiwiSaver. Anyone else who is under 65 and who is eligible can also join by 'opting in’ through their employer or contacting a scheme provider directly.
What it means to employers
What Sorted is doing
What it means to employers
From 1 July 2007 you will need to enrol all eligible new employees into KiwiSaver and allow existing eligible employees to ‘opt in’ to KiwiSaver. There are some exceptions, for example if you already have a workplace savings scheme which meets Inland Revenue’s exempt criteria.
If your current workplace savings scheme is not exempt, you can continue to offer it to your employees in addition to KiwiSaver, or you can convert it to an exempt scheme.
From 1 April 2008 you will be required to match your employees' contributions to KiwiSaver (or a complying workplace savings scheme). This matching will start at a minimum of 1% of the employees' gross salary, increasing by 1% each year until it reaches 4% on 1 April 2011.
For more detailed information, visit Inland Revenue’s KiwiSaver for employers website.
What Sorted is doing
We’ve developed a range of free resources, so you can help your staff make decisions about KiwiSaver and increase their financial knowledge in the process. You can order or download them now.
As well as helping them make an informed decision about KiwiSaver, helping your team get their money sorted can be good for business. Workers who don’t have money worries will probably be less stressed, may take fewer days off sick and may perform better at work.
If your employees need professional financial advice, our advice checklist should help them find the right person.
