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Essential information for Employers What AonSaver offers AonSaver offers a range of benefits and attractive features to both employers and individuals, namely: A single point of contact for employers and individuals. An Employers Guide outlining your responsibilities as an employer. A supply of Investment Statements for all employees wanting to enrol. Online enrolment of both single and multiple employees through the AonSaver website. Online enrolment notifications are mailed direct to Inland Revenue, and copies are emailed back to employers for their records. Competitive fees for a range of investments. Choice of 13 investments from four leading Fund Managers. Online member account access, 24/7. Download a copy of our Employer Factsheet which also shows how contributions accumulate. How KiwiSaver works KiwiSaver started on 1st July 2007. Employees' contributions are deducted from their pay and paid to the Inland Revenue Department (IRD) through the PAYE system. IRD forwards the contributions to the employees' retirement savings schemes. KiwiSaver is a voluntary long term savings scheme designed to encourage New Zealanders to save for their retirement. The scheme is open to all New Zealand citizens and permanent residents aged up to 65. The Government will give every KiwiSaver account holder a 'kick start' of $1,000. It will also contribute up to $5,000 to an account holder's first home purchase. Some conditions apply. Your obligations as an employer Employers play an important role in KiwiSaver. Here are the things you must do: Supply the IRD information pack (KS3) to new employees who qualify for automatic KiwiSaver enrolment and existing employees who want to opt in. If you have chosen a preferred KiwiSaver scheme provider, you need to let your employees know in writing. You also need to give them a copy of the preferred provider's investment statement. Enrol eligible employees by supplying IRD with information on a KiwiSaver employee details form (KS1) no later than the date of your next employer monthly schedule. Start deductions on the first pay day following enrolment; when advised by IRD to do so; or when a contribution holiday expires. From 1st April 2008 match employee KiwiSaver contributions of 1% gross salary. These contributions increased to 2% on 1 April 2009. Forward deductions to IRD by the due date, along with your PAYE payments. Act on opt out and contributions holiday requests. Cease making deductions if: The employee completes an opt out form (KS10) within eight weeks of being auto enrolled. A contribution holiday is granted. Trustees approve cessation because of serious illness or significant financial hardship. An IRD notification to cease making deductions is received. The employee becomes eligible to, and wants to withdraw their savings. How AonSaver works for you Once you have chosen AonSaver many things become easier: Direct your employees' questions to a single point for answers. Our 0800 number and email response centre is 0800 266 463. Single or multiple employee enrolments are quick and easy using the AonSaver online enrolment process. Payroll information can be uploaded to our website. Employee enrolment notifications to Inland Revenue can be dealt with on your behalf if you choose this option. Copies are automatically emailed to you for your records. Completed KiwiSaver deduction forms are generated and can be printed out in your office for employees to sign and file. Matching tax credit computation returns to Inland Revenue claiming employee entitlements are automatically prepared each year. Preferred KiwiSaver providers Employers can select a preferred KiwiSaver provider to simplify the compliance and administrative issues associated with KiwiSaver. Employees can also actively select their own preferred provider. If they don't make a choice, they will be enrolled with their employer's preferred provider. If employers don't select a preferred provider, their employees will be allocated to any one of six default providers. Employers won't know who an employee's provider is and your administrative staff may have to call up to six default providers to resolve issues. A preferred provider, such as AonSaver, can assist employers with the enrolment process, ongoing administration and information support. Employers must let employees know that they have chosen a preferred provider and give them a copy of the provider's investment statement. Employees need to understand that they will be allocated to the preferred provider if they don't make their own choice. Schemes chosen by employers must be open to all eligible KiwiSaver employees and IRD must be notified of any change. Employees eligible to join KiwiSaver KiwiSaver is open to all employees aged under 65 who are New Zealand citizens or entitled to live here permanently. This includes workers on a part-time or temporary contract. Exceptions are: People who are already enrolled in KiwiSaver. Casual/Temporary employees who will be employed for less than 28 days. People who are ACC recipients, private domestic workers or not subject to PAYE deductions What should you do for new employees? New employees who are not KiwiSaver members already must be enrolled. This is called 'automatic enrolment'. Ensure he or she receives a KiwiSaver information pack (KS3) within 7 days of starting their new job. If you have chosen a preferred KiwiSaver scheme, such as AonSaver, you must let your employees know and give them a copy of the scheme's investment statement. Provide IRD with their name, IRD number, address and contribution rate by completing an employee details form (KS1). Deduct KiwiSaver contributions from their salary/wage payments and pay the deductions to IRD along with their PAYE, unless they can produce a valid contributions holiday notice (KS6). What should you do for existing employees? Existing employees are not enrolled automatically, but they can choose to join KiwiSaver by opting in - either through you or directly with their preferred scheme, such as AonSaver. Provide interested employees with a KiwiSaver information pack (KS3). If you have chosen a preferred KiwiSaver scheme, such as AonSaver, you must let your employees know and give them a copy of the scheme's investment statement. When an existing employee wants to opt in they must give you a deduction notice (KS2), but it's your job to enrol them. This will mean providing IRD with their name, IRD number, address and contribution rate using an employee enrolment form (KS1). Existing employees who join KiwiSaver should note that they can not opt out of Kiwisaver. However, after contributing for one year they may apply for a contribution holiday. Employee contributions Employers must correctly calculate and deduct employees' contributions from their gross pay and forward the deductions to IRD. Employees can choose to make contributions of 2%, 4% or 8% of their gross pay. If employees' don't choose a rate, the default rate of 2% will apply. Calculation tables are included in the PAYE deduction tables, based on these rates. Gross pay includes base pay plus any overtime pay, commission, bonus or other remuneration. Employer contributions Employers are required to commence making contributions to their employees' KiwiSaver retirement savings from 1st April 2008. Employers are required to match employee KiwiSaver contributions of 1% gross salary. These contributions increased to 2% on 1 April 2009 All employer contributions must be paid to Inland Revenue. Any employer contribution is exempt from Specified Superannuation Contribution Withholding Tax (in other words, tax free) up to the lesser of 2% of the employee's before-tax pay. IRD holds all contributions received from employers for three months before remitting to the employee's scheme (with interest). This is to allow employees time to choose a scheme provider. Opting out KiwiSaver is a voluntary savings scheme, however opting out is only possible during a six week period starting two weeks after enrolment. Employees who were automatically enrolled into KiwiSaver when starting a new job can opt out by completing an opt out request (KS10). This form is in the KS3 information pack. Employers can only accept opt out requests from new employees between the end of their second week to the end of their eighth week of employment (on or after day 14 and on or before day 56 after starting work). Employers need to forward opt out forms to IRD and stop deductions. Refunds of contributions deducted before the opt out request is completed are made to the employee by the employer if contributions haven't yet been remitted to IRD, or by IRD if they are holding those contributions. If an opt out request isn't completed in time, contributions must continue for 12 months, at which time the employee can apply for a contribution holiday. Contribution holidays Once an employee has been contributing to KiwiSaver for 12 months, they can apply to have a contribution holiday. Employees can choose a contribution holiday of between three months and five years. IRD will send a letter to the employee confirming the beginning and end dates. This letter must be shown to the employer before deductions can be stopped. When the contribution holiday expires, IRD will send a notice to the employer advising them when to commence deductions again. Employees may apply for further contribution holidays when an existing one has less than six months to run. Contribution holidays during the first 12 months may only be granted by IRD in cases of financial hardship. Record keeping Employers must keep records of all contributions made and forms completed. Employees' payslips must show their KiwiSaver deductions, as well as any employer contributions that have been made. Employers are required to maintain records and copies of employee enrolments, opt in, opt out notices, contribution holiday notices and employee deductions. Giving financial advice Care should be taken when discussing any KiwiSaver scheme. You should encourage employees to seek independent advice about their KiwiSaver scheme from a professional financial advisor. Employers choosing a preferred scheme provider for their employees are not deemed to be giving financial advice. Simply enrolling employees with KiwiSaver is also not deemed to be giving financial advice. Employers can't be held liable for any adverse investment performance of a KiwiSaver scheme unless they have given financial advice. Penalties Employers failing to meet their KiwiSaver Obligations are subject to penalties. Failure to provide information to employees or IRD within the prescribed timeframes or failure to make correct deductions could lead to penalties which are similar to those relating to PAYE. IRD is committed to helping employers and employees meet their obligations and will issue reminders and warnings before penalty notices are issued.

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