Employees who are enrolled in the KiwiSaver scheme need to make personal contributions to their funds based on a percentage of their before tax pay. For more information on what is included, refer to Employee contributions to KiwiSaver accounts (ird.govt.nz)
Employee contributions are fund specific, where a separate deduction code must be used for each fund. Follow the steps below to create a percentage deduction.
Create the Employee Contribution Deduction
Go to Payroll, Maintenance, Superannuation, Fund.
Edit the fund for the employee contribution.
Select the Employee Contributions tab and click New.
Enter the Code, Shortcut Key and Description.
In Parameters, select Deduction After Tax as Category.
Select Percent as Type.
Leave Percent blank. You will specify this on the Employee record. Once Percent is selected as the Type, the Hours fields are enabled.
From Hours, select all hour types to be included in the calculation of the contribution. You will need to include any rates that are used to pay Leave e.g. the rate used for Holiday Pay (or Annual Leave).
Select Paid as the Overtime Type.
Choose all the paid Leave Reasons in Other Leave Reason and all User Defined Leave classes.
Ensure Specify Hours in Transaction is unticked.
Tick the Process Deduction Calculation checkbox. This includes in the calculation the value from any additions with Include in Deduction Calculation ticked.
Tick Employee Contribution.
Click OK to save the new contribution.
Click OK to save changes to the superannuation fund.
Attach the Deduction to a Super Fund - Optional
Only complete these steps if you have created the Deduction in Payroll, Maintenance, General, Additions and Deductions. You can skip these steps if you created the Deduction from within the Fund.
If you created the Deduction in Additions and Deductions, you will need to go to the Fund and attach the deduction before you can attach it to the employee's super details:
Go to Payroll, Maintenance, Superannuation, Fund.
Highlight the fund and Edit.
On the Employee Contributions tab, click Select.
Pick the new Code from the grid and OK to save.
Attach the Deduction to the Employee's Superannuation Details
Go to Payroll, Maintenance, Employees, Employees.
Edit the Employee.
Select Superannuation Details.
Highlight the fund at the top of the screen and then click Add under the Superannuation Contributions section.
Select the Employee radio button.
From the Employee Contribution dropdown, select the Deduction code.
Add the Percentage.
Click OK to save the contribution.
Then click OK to save the employee record.
Employee Contributions are visible on the employee record in both the Additions and Deductions and Superannuation details. You can only make changes from Superannuation Details.