Your KiwiSaver contributions are deducted from your after tax pay and retained by your employer who is then obliged to send them to IRD on 20th of each month when filing their PAYE return. Your employer is also obliged to contribute a minimum of 3% of your gross earnings (less a little tax), and this is also required to accompany your own contributions on 20th of each month.
Since the scheme started in 2007 employers have failed to pay over $10m in KS contributions for over 46,000 employees, according to figures obtained by Radio NZ from IRD.
Employees who are in KiwiSaver rely on their employers to pass their own contributions, as well as the 3% minimum (less tax) businesses are legally required to pay, to IRD each month. IRD then pass this total sum on to your KiwiSaver provider.
It seems that some employers are not sending your money to IRD.
Most KiwiSaver schemes provide members with password protected electronic access to your own KiwiSaver account. Keep vigilant by logging in to ensure that two regular payments pop up every month. Bear in mind that generally payments take around three months to come from an employer, via IRD, to the KiwiSaver scheme provider.
Obviously missing out on KiwiSaver contributions can have a huge impact down the track. If you are robbed of $1,000 at age 20 it’s likely to add up to $30,000 or more at retirement.
If you are concerned as to whether or not your employer is passing on all of your contributions you can sign up for myIR with Inland Revenue so that you can view all transactions. Be aware of the time lag.
If you are still concerned you can speak with your employer and/or contact us for assistance. We are definitely on your side.
Click to read the full article from Tamsyn Parker: Companies fail to hand over KiwiSaver cash