NZ Payroll - Support for voluntary employer Kiwisaver contributions
With the current financial climate, employees are suspending their KiwiSaver contributions. The Inland Revenue (IR) allows the Employer to continue with the company's contribution voluntarily.
At this stage, it is not 'officially' possible for the employer to contribute to KiwiSaver if the employee is on a Savings Suspension in Xero.
The employee is on a Savings suspension, then the company cannot contribute either. Also, when on a savings suspension Xero requires an expiry date, IR does not always provide a date; instead, advising us when to recommence the KiwiSaver.
If the employee's KiwiSaver is kept active their contribution cannot be changed to 0%
The only workaround is adding a new pay type for Superannuation to the Pay Template, with a % of Taxable Earnings for the Calculation Type. However, when the Payroll is processed this will not get automatically disclosed to IR, therefore it has to be updated manually with IR with each time.
I suggest adding another choice in the Contribution Option; ‘Employer only contributions’. This option will lock the employee contributions fields at 0% and keep the employer fields active.
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Julie Gilchrist
shared this idea
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Nadine Hyslop
commented
Hmm I wonder if you can just put it as per pic attached? Only problem is, it wont have the expiry date option, and I dont know if it affects IRD when posted through.
We have an employee considering doing this in the near future so Id love to know what Xero's solution is here too - seems unfair to stop our payments to them.