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This chapter contains the following topics:
KiwiSaver is a retirement savings plan for New Zealand residents that is governed by the Inland Revenue Department (IRD). The KiwiSaver plan enables employees to contribute a portion of their payroll earnings to a retirement savings plan. In addition to employee contributions, employers also contribute funds to the plan on the behalf of each participating employee.
IRD requires employers to track and report the amount of earnings that each employee contributes to the KiwiSaver plan and also the amount that the employer contributes on each employee's behalf.
To manage KiwiSaver information, you set up deductions and benefits (DBAs) to calculate the amounts that both employees and employers contribute to the KiwiSaver plan. The system processes these DBAs during the payroll cycle, and stores the calculated amounts of the contributions in the New Zealand Tax Ledger Detail table (F75Z0002). You can then create reports and electronic files that are based on the F75Z0002 table, and submit them to IRD to meet legislative requirements associated with the KiwiSaver plan.
Before you can process KiwiSaver information, you must create a deduction to calculate the employee contribution to the plan, and you must create a benefit to calculate the employer contribution to the plan.
This section provides an overview of KiwiSaver setup, and discusses how to specify DBA codes for KiwiSaver contributions.
Before you can process KiwiSaver information, you must prepare your system to calculate, store, and report KiwiSaver data. You use deductions and benefits (DBAs) to calculate the employee and employer contributions that are made to the plan on each employee's behalf. Using UDC table 75/KS, you specify which DBA codes you use to calculate each portion of the contribution.
When you process prepayroll, the system uses the DBAs to calculate the contribution amounts. During the final update step of the payroll cycle, the system uses the values in UDC 75/KS, along with the DBA amounts that were calculated during prepayroll, to determine what values to update in the New Zealand Tax Ledger Detail table (F75Z0002). The employer contribution is stored in field Z2KCON, and the employee contribution is stored in field Z2KDED.
Important:In an update to the 8.12 release, the F75Z0002 table was modified to store KiwiSaver information. Two fields, Z2KCON and Z2KDED, were added to this table to store the contribution amounts that are calculated during each payroll cycle. If you are running a release earlier than 9.0, before you can store KiwiSaver information in this table, you must run the Convert F75Z0002 for KiwiSaver table conversion program (R8975Z0002) to add these two new fields to the table. If you process KiwiSaver information through a payroll cycle before you process the table conversion, the system does not store KiwiSaver information F75Z0002.
|Work With User Defined Codes||W0004AA||Enter UDC in the fast path.||Use this form to access UDC table 75/KS.|
|User Defined Codes||W0004AI||On Work With User Defined Codes, search for UDC 75/KS, and then click Add.||Specify DBA codes for KiwiSaver contributions.|
Access the User Defined Codes form.
On the first line of the table, enter the DBA code of the deduction that you use to calculate the employee contribution to the KiwiSaver plan in the Code field.
Enter a description in the Description 1 field.
Enter EE in the Description 2 field.
Note:The system uses the value in this field to determine what to update in the Z2KDED field of the F75Z0002 table. If you do not enter EE in the Description 2 field, no employee contribution information is written to the F75Z0002 table. You can enter only one employee contribution DBA in this table.
On the next line, enter the DBA code of the benefit that you use to calculate the employer contribution to the KiwiSaver plan in the Code field.
Enter a description in the Description 1 field.
Enter ER in the Description 2 field.
Note:The system uses the value in this field to determine what to update in the Z2KCON field of the F75Z0002 table. If you do not enter ER in the Description 2 field, no employer contribution information is written to the F75Z0002 table. You can enter only one employer contribution DBA in this table.
Click OK to save your changes and then click Close.
This section provides an overview of KiwiSaver reporting and discusses how to:
Generate the New Zealand IR file and report for KiwiSaver reporting.
Set processing options for the New Zealand IR File and Report (R75Z0006).
When you process KiwiSaver DBAs through a payroll cycle, the system stores the employee and employer contribution amounts in the New Zealand Tax Ledger Detail table (F75Z0002). You can use the Write New Zealand IR File and Report program (R75Z0006) to extract that data into a report and an electronic file, which you can submit to IRD to meet the legislative requirements of the KiwiSaver plan.
Note:Before you process the R75Z0006, you must set the processing options so that the data that is included in the report and the file is formatted correctly for KiwiSaver reporting. Specifically, you must enter a value of 0002 in the IRD version processing option on the Electronic File tab.
Select Australia/New Zealand Reports (G07BUSP17), New Zealand IR File and Report.
Specify the period start date for this report.
Specify the period end date for this report.
Specify the deduction code used for child support payments.
Specify whether you want to create an electronic file for filing. Values are:
No is the default value.
Specify the name of the payroll contact person.
Specify the phone number of the payroll contact person.
Specify the IRD form version number to be used. For KiwiSaver processing, enter 0002 in this option.
Specify the file name for the output file, including the extension.
Specify whether you want to update the date reported field on the records processed. Values are: