Article from Sorted.org.nz
KiwiSaver is a new, voluntary work-based savings scheme, run by Inland Revenue using existing employer monthly schedule and payment collection processes.
From July 1, 2007, all eligible new employees aged between 18 and 65 will be automatically enrolled to KiwiSaver. Other employees under 65 and who are eligible can also join by "opting in" through their employer or contacting a scheme provider directly.
What it means to employers
From July 1, 2007, you will need to enrol all eligible new employees into KiwiSaver and allow existing eligible employees to "opt in" to KiwiSaver. There are some exceptions for example, if you already have a workplace savings scheme that meets Inland Revenue's exempt criteria.
If your current workplace-savings scheme is not exempt, you can continue to offer it to your employees in addition to KiwiSaver, or you can convert it to an exempt scheme.
From April 1, 2008, you will be required to match your employees' contributions to KiwiSaver (or a complying workplace savings scheme). This matching will start at a minimum of one percent of the employees' gross salary, increasing by one percent each year until it reaches four percent on April 1, 2011.
Your contributions will be eligible for a matching employer tax credit of up to $20 per week ($1040 per year) for each contributing employee from April 1, 2008.
For more detailed information, visit Inland Revenue's KiwiSaver for employers website.
What Sorted is doing
Sorted has developed a range of free resources so you can help your staff make decisions about KiwiSaver and increase their financial knowledge in the process. You can order or download them now.
As well as helping them make an informed decision about KiwiSaver, helping your team get their money sorted can be good for business. Workers who don't have money worries will probably be less stressed, may take fewer days off sick and may also perform better at work.
|Article provided by Sorted.org.nz. The Retirement Commission's free and independent website Sorted.org.nz is packed with helpful information, tools and calculators to help you manage your personal finances.