Updating Kiwisaver Deduction Rates

Your employee can ask you to change the rate you use to make deductions KiwiSaver from their pay. They cannot change it more than once every 3 months unless you agree.

1. Employee gives you a KiwiSaver deduction – KS2

·         The KS2 tells you the updated rate your employee wants you to use to make KiwiSaver deductions from their pay.

·         It can be either 3%, 4%, 6%, 8% or 10% of their gross pay.
·         The KS2 tells you the updated rate your employee wants you to use to make KiwiSaver deductions from their pay.

·         It can be either 3%, 4%, 6%, 8% or 10% of their gross pay.

2. Place the KS2 on file.

·         You do not need to send the KS2 to IRD. Keep it on file with your KiwiSaver records.

3. Make the rate change

·         Make the rate change and apply it from your employee’s next pay.

Other ways to do this

Your employee does not have to use the KS2 to change their rate. They can also ask you to change their deduction rate in writing, for example by email.

Make sure you keep a copy for your records.

Reference: https://www.ird.govt.nz/kiwisaver/kiwisaver-employers/contributions-and-deductions/update-employee-deduction-rate-for-kiwisaver