New employees you’ve automatically enrolled into KiwiSaver can ask you, or IRD, to opt them out.

·         Only employees you’ve automatically enrolled can opt out of KiwiSaver.

·         Employees who’ve opted into KiwiSaver cannot opt out later.

·         You can opt your new employees out of KiwiSaver. But only between 2–8 weeks of starting work (that’s on or after day 14 and on or before day 56).

·         We must approve requests to opt out after 8 weeks (57 days). These are late opt outs. IRD may approve them up to three months after IRD get your employee’s first contribution, but only in some situations.

How your employee requests an opt out through you

Your employee can ask you to opt them out of KiwiSaver by handing you their KiwiSaver opt out request – KS10. You’ll have given them this when you automatically enrol them.

If your employee’s request is late, your employee must ask IRD to opt them out. They can send their KS10 to IRD or apply online.

Stopping deductions and contributions

If your employee gives you their KiwiSaver opt out request – KS10 and it’s within 14–56 days of starting work with you, you can straight away stop:

·         making KiwiSaver deductions from their pay

·         paying your compulsory employer contributions and the employer superannuation contribution tax.

If your employee sends their KS10 to IRD and we:

·         accept their request, IRD will let you know you need to stop deductions and contributions

·         do not accept their request, and you’ve stopped deductions and contributions, IRD will ask you to start them again.

To see the full article, click here

Penny Varley

Payroll Administrator