Hi
When processing the payrun on 01.04.26 the Kiwisaver deduction was made at 3%. IRD have picked up on this and require the amount amended to 3.5%.
The payday was 01.04.26, but the pay week was w.e.29.03.26, so should I just explain that to the IRD, or make an adjustment?
Hi CarolineNZ
If the payment date was 1/4/26 - this is in the new financial year, so the kiwisaver should have been 3.5%. I had a client - who went in and amended it at IRD only and paid the difference - it really depends on the amount owing, and whether you would deduct the employee difference from your employees. You would need to take any further deduction as a post tax deduction, as you can't amend the kiwisaver to match.
I'm guessing you also just got a letter from IRD. One of our clients did today as well. Seems MYOB Business Payroll didn't update automatically for those March payruns with a payment date 1/4/26. We have just advised a client to edit it at IRD only to correct the amounts - as the $ value for the difference is quite small and not worth the hassle of deleting and re-doing the run. They will just pay the difference to IRD $50 They only had 2 employees where it affected the employee kiwisaver though.
Hi CarolineNZ,
Because the payment date falls in the new financial year, both the employee and employer KiwiSaver rate should be 3.5%. You’ll need to make an adjustment by deleting the entire pay run and redoing it with both contribution rates set to 3.5%. You’ll also need to amend the initial submission in myIR so you don’t end up with duplicate returns. If needed, you can amend the original return to a zero pay for the one that was calculated at 3%, or check this link about changing or deleting a pay for more info. You can also give IRD a quick call for help with the cleanest way to amend or remove that original submission.
Cheers,
Doreen
I just had exactly the same. MYOB support told me to delete the original payrun and redo in MYOB. Before doing this, I went into myIR and zeroed out the original submission. When redoing in MYOB, a new submission is sent. Also had to let my employee know they'll be getting less $ this week due to "overpayment" on 1st April. Also needed to change my upcoming payment to IRD due 20th May. Luckily I only have 1 employee. This does seem to have sorted the issue - I've also requested a refund from MYOB for the hassle!
