I changed employers a few months ago. How do I find out if my employer is making KiwiSaver contributions? I have logged into my KiwiSaver account and I can't see any money going in. I have not taken a contributions holiday or signed any opt out form (I have been in KiwiSaver for a few years now). I don't get payslips so I can't check what's going out of my wages.
How many employees still receive payslips? According to the Employment New Zealand website managed by MBIE "unless there is an agreement to do so, an employer is under no specific legal obligation to provide a payslip. In the interests of ensuring that everyone understands when and how wages or salaries have been calculated and paid, however, an employee has the right to access or obtain a copy of the employer's wage and time records relating to that employee. This record must be kept by the employer for each of their employees."
It does show respect for the employee to provide them with a payslip, particularly if the employee works irregular hours. Mistakes do happen, and employees should feel comfortable about talking to their employer about how their wages are calculated.
A payslip will show KiwiSaver deductions, and the employee will be able to check that deductions are being made at the correct rate - either 3 per cent, 4 per cent or 8 per cent.
To find out what's happening with your KiwiSaver you should set up a myIR account through the IRD website.
This provides you with access to all information about the KiwiSaver contributions made on your behalf by your employer in their PAYE returns.
If your employer submits their PAYE on the 20th of the month, IRD will receive all your KiwiSaver contributions for the previous month on that day.
Once you have logged into your myIR account you can filter transactions under such headings as "Deductions from salary/wages", "Employer Contributions", "Government Contributions" and "Interest paid by IRD".
As you have been in your job for several months, some contributions should have been received by Inland Revenue by now, even if they have not yet reached your provider.
There is a time delay of up to three months between when the money is deducted from wages/salary and when it is passed on to the KiwiSaver scheme provider.
If you can see from your myIR login that no KiwiSaver contributions are being made, you should print off a KS2 form (available from the IRD website) fill it in and give it to your employer.
Tell them you would like contributions to start from your next pay.
What can you do about the months that you have missed out on?
You can call Inland Revenue on 0800 KIWISAVER.
There are penalties for employers who do not make contributions.
Do you want to go down this road? If it is a small workplace, it could create tensions.
If you work out the dollar value, you may decide that you would rather not rock the boat with your employer.
Employers come in all shapes and sizes, and some have not really come to grips with their KiwiSaver obligations.
Most new employees should be opted in to KiwiSaver, but there are exceptions.
Is your employer treating you as one of these?
Exceptions include workers under 18, casual agricultural workers or casual employees who receive holiday pay with their wages.
However, all these workers can join KiwiSaver by filling in a KS2 form and giving it to their employer.
The best time to talk about KiwiSaver is before you start a new job. You can tell a prospective new employer that you are in KiwiSaver.
Their response will give you insight into their level of support for the scheme.
The job may sound appealing, but do you want to work for someone unwilling to pay an extra 3 per cent into a retirement scheme for their workers' financial security?
- Shelley Hanna is an authorised financial adviser (FSP12241). Her free disclosure statement is available on request by calling (06) 870 3838, or see peak.net.nz. The information contained in this article is of a general nature and is not personalised.
Send your KiwiSaver questions to firstname.lastname@example.org.