Important: Please ensure you follow the NZ EOY checklist and perform the suggested backups.
The default KiwiSaver contribution rate will rise to 3.5% (from 3%) for the employer and employee. The new rate will affect all pay days from 1 April. So even if your pay period covers before and after 1 April, your whole contribution for that pay period will be deducted at the new rate.
For the 1st pay in the new financial year of 26/27 after updating your Taxation PDL, you will need to change your KiwiSaver amounts to comply with the Inland Revenue Department.
For more information read: KiwiSaver IRD
Note: Employees can apply for a temporary rate reduction if they want to continue to contribute 3%.
To do this please follow the below steps:
Changing the Employer to 3.5%
Go to Awards.
Starting at the top, you will need to select each award and Edit.
Select Payments, Superannuation.
Change Superannuation % from 3.0% to 3.5, enter and Close.
Changing the Employee to 3.5%
While still in the Award you can:
Go to General, Employees.
Select each employee and Edit.
Scroll down to Payments, Superannuation.
Select Employee and Edit.
Change the Amount: from 3.0% to 3.5%, OK, Close.
Note: The employee record can be altered from the Award while amending the employer amount, or it can be done in the employee records using the same method as above