KiwiSaver is the Government's initiative to promote long term savings, it came into effect on 1 July 2007. With KiwiSaver individual employees make contributions from their salary or wages into their KiwiSaver account.
Employers are required to contribute to their employees KiwiSaver accounts (subject to certain exceptions). The contributions go through to Inland Revenue, who then pass them on to a KiwiSaver provider.
Generally, new staff are automatically enrolled in KiwiSaver and existing staff can choose to enrol.
By completing this sign-up process, your business is choosing TOWER as its preferred KiwiSaver provider.
Important Information
As an employer you have to make KiwiSaver, or a complying superannuation scheme, available to all your staff, give them an information pack and pass on their details, such as names, addresses and IRD number to Inland Revenue.
You also need to deduct their contributions from their salary and forward them to Inland Revenue. You also need to contribute to your staff's KiwiSaver schemes (subject to certain exceptions). All contributions are paid to Inland Revenue through the PAYE system.
Currently, employees must contribute a minimum of 2% of their gross salary or wages and, in most cases employers must also contribute a minimum of 2% of their gross salary or wages. In the 2011 Budget it has been proposed that the minimum contribution rate for both employees and employers will rise to 3% from 1 April 2013.
To start with, when staff first sign up to their first KiwiSaver scheme they'll get a $1,000 kick start from the Government towards their savings, subject to conditions. The Government is also providing up to $521.43 worth of member tax credits each year to employees who meet the qualifying criteria. The member tax credit and kick-start are paid into their KiwiSaver schemes.
It is also compulsory (unless your employee is under 18 or older than the age of eligibility to receive a retirement benefit from KiwiSaver, or is having complying fund member contributions already deducted from their salary) for employers to make contributions on behalf of their staff, meaning employees will save even more.
Of course the most important reason for your staff to get into KiwiSaver is that it's an easy and effective way to get into retirement savings – and the earlier they start, the better off they'll be.
The TOWER KiwiSaver Scheme offers employers a lot of great benefits.
For a start (because you probably spend enough time administering your business) we'll help you set up access to the TOWER KiwiSaver Scheme, and provide one point of contact for all the questions you and your staff might have.
We'll work with you to make sure the TOWER KiwiSaver Scheme fits with your business. Whether you've got an existing workplace superannuation scheme or you're new to superannuation savings, we can create a solution that's right for you and your staff.
We'll make it easy for your staff to understand all the KiwiSaver benefits they're entitled to, such as the $1,000 kick start and any member tax credits.
We have five investment funds that are professionally managed and easy to understand.
And we can provide you with access to other staff benefits, such as health, life and income protection insurance.
Your staff will have 24 hour access to KiwiSaver information, right here through this site.
Finally, we'll give your employees all the support they need to set up their TOWER KiwiSaver Scheme account, such as annual statements and other financial information to help them. We can also come and present to your staff and explain it all in person if you like.
There are no fees or extra costs in choosing the TOWER KiwiSaver Scheme for your workplace.
If your staff join the TOWER KiwiSaver Scheme, currently you'll need to pay a minimum contribution of 2% into their scheme (subject to certain exceptions). See details under the question "Why would my staff get into KiwiSaver." In the 2011 Budget it has been proposed that the minimum contribution rate for both employees and employers will rise to 3% from 1 April 2013.
Select a task