Employees may choose to opt out of KiwiSaver. This generally happens because:
New employees who were auto enrolled choose to opt out. Auto enrolled employees have 56 days (8 weeks) from their hire date to opt out. If they opt out after 56 days, it is considered a late opt out.
Late opt out is only permitted in certain circumstances and a date and reason must be provided and reported to the IRD.
See Opting out of KiwiSaver for more information.
Below are the late opt out reason codes.
Code | Reason |
INFO | Employer didn't provide a KiwiSaver Information pack within seven days of starting employment. |
IRIS | IR didn't send an investment statement upon allocation to a default scheme. |
ERIS | Employer didn't provide an investment statement for the employer's chosen KiwiSaver scheme. |
EVNT | Events outside of control meant that the opt out application wasn't submitted within the eight week time limit. |
INER | Incorrectly enrolled under the age of 18. |
OTHR | Other explanation. Selecting this option opens a free text field. Enter the reason. |
The steps for opting out an employee differ depending on whether superannuation contributions have been processed for the employee or not.
Opt out if superannuation contributions have been processed
If superannuation contributions have been processed for the employee, you can't delete the superannuation fund or contributions from the employee record. Instead, you terminated the fund.
Go to Payroll, Maintenance, Employees, Employees.
Edit the employee.
Select Superannuation Details.
Edit the Fund at the top.
Tick Date Terminated. This will display the Opt Out and Savings Suspension fields. The Opt Out Notice Date will be ticked by default. Both dates will default to today.
Update Date Terminated and Opt Out Notice Date with the date the employee the opt out notice date as advised by the employee.
If the Opt Out Notice Date is more than 56 days after the hire date, Late Opt-Out Reasons will display. Select the appropriate reason.
Click OK.
Edit the Employer Contribution in the box at the bottom.
Enter 0 in Allocations.
Click OK to save the change. This will stop the Employer Contribution from calculating.
Edit the Employee Contribution.
Enter 0 in Value.
Click OK to save the change. This will stop the Employee Contribution from calculating.
Click OK to save the employee record.
Opt out if superannuation contributions haven't been processed
If superannuation contributions haven't been processed for the employee, you can delete the superannuation fund.
Go to Payroll, Maintenance, Employees, Employees.
Edit the Employee.
Select Superannuation Details.
Select the Employer Contribution in the box at the bottom and click Delete.
Click Yes to confirm the deletion.
Repeat steps 4 and 5 for all contributions.
Once all contributions for the fund have been removed, select the Fund at the top and click Delete.
Click Yes to confirm the deletion.
The KiwiSaver fields at the top will change. Select Opt Out.
The Opt Out Notice Date will default to today. Update this to reflect the opt out notice date as advised by the employee.
If the Opt Out Notice Date is more than 56 days after the hire date, Late Opt-Out Reasons will display. Select the appropriate reason.
Click OK to save the employee record.