Salary Sacrifice - Kiwisaver - Essentials Payroll

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Salary Sacrifice - Kiwisaver - Essentials Payroll

I've just been advised by IRD that when the employers contribution to kiwisaver is coming from the employees wages - it should be treated as a "Salary Sacrifice". This is NOT for the employer contribtion being paid directly to the employee scheme provider.  The employee contract reads: "wages will be inclusive of the Employer's compulsory contribution towards the employees' KiwiSaver shceme" .

IRD advise that the employer contribution won't show on the payslip, but will show (along with ESCT) on the report received by them (IRD).  

I need to know how to set this up on Essentials Payroll please

Former Staff
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Former Staff
Former Staff




Re: Salary Sacrifice - Kiwisaver - Essentials Payroll

Hi @Kaz445 


Thank you for your post.

Unfortunately, Essentials does not have the functionality to achieve total Remuneration. Instead, what you'd need to do is the following: Base salary = Total Rem Salary / 1.03 (being if the employer contribution is 3%). This will need to be entered into the employee details tab, which will calculate the base salary, add the 3% employer kiwisaver and be included in the ESCT during the pay run. 


Also, with regards to Salary Sacrifice, this is not something Essentials has as an option for and instead this would be considered as a voluntary contribution. 


Please let us know how you get on and if you have any further questions.

Kind regards,

MYOB Community Support

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