Understanding the KiwiSaver Retirement Plan

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.