Contributing to a Super Fund with or without a KiwiSaver

Some businesses may have a complying superannuation fund as well as KiwiSaver for their employees. When this is the case, an employee may have their own contributions along with employer contributions to the complying fund as well as KiwiSaver, or they may just have contributions to the complying fund if they aren’t a KiwiSaver member.

Also, some businesses that have a complying fund, only calculate superannuation for that fund on certain pay categories such as ordinary time earnings (OTE) so they need to specify which earnings these are.

The following steps are required to set up the complying superannuation fund:

1. Pay categories - Tick Include for superannuation for the pay categories you want to have superannuation calculated on.
2. Employer Liability Categories - Setup your employer liability for the employer superannuation contribution and tick Is a superannuation fund.
3. Deduction Categories – Setup a deduction category for the employee superannuation contribution deduction.
4. Add a Pay Run Inclusion for the employee deduction – choose Percentage of superannuation earnings as the amount type.
5. Employer Liability Categories - Add a pay run inclusion for the employer liability – choose Percentage of superannuation as the amount type. To do this go to the employee list and select the employee, then select Pay Run Inclusions > Employer Liabilities.
6. If the employee does not contribute to Kiwisaver as well, you will need to go to that employee’s Pay Run Defaults screen and set their Esct rate by ticking the Override Esct Rate button and entering the Esct rate they should be on.

7. By following the above steps, both the employee superannuation deduction and the employer superannuation liability will automatically appear in the pay run and calculate the percentage required based on the gross earnings of the pay categories that have been ticked for superannuation. Also, the Esct amount will be automatically deducted from the employer liability and be included in payday filing to be submitted to IRD. 

If you have any questions or feedback, please let us know via support@nzpayroll.co.nz