Late Opt Out Requests from Kiwisaver
Your employees who choose to opt into KiwiSaver cannot opt out. Only new employees you are automatically enrolled in KiwiSaver can opt out.
Requests to be opted out after 8 weeks (57 days) are LATE OPT OUT REQUESTS.
How your employee requests a late opt-out
Employees will need to send their KiwiSaver late opt-out request to Inland Revenue.
Approving a late opt-out request
Inland Revenue must approve the late opt-out requests. IR may approve them up to 3 months after the date we got your employee’s first KiwiSaver contribution.
They can only approve them for these reasons:
- IR did not send a product disclosure statement to your employee for the default KiwiSaver scheme we allocated them to.
- Employer did not give employee a product disclosure statement for your employer-chosen KiwiSaver scheme.
- Events outside of your employee’s control meant a late opt-out request.
- Employer did not give your employee their KiwiSaver enrolment pack within 7 days of them starting work with them.
- The employee should not have been automatically enrolled.
Stopping deductions and contributions for late opt-outs
If you know your employee has applied to opt out of KiwiSaver late, you must keep making KiwiSaver deductions from their pay and paying your compulsory employer contributions and the employer superannuation contribution tax until Inland Revenue advise you that they have approved the late opt-out and when to stop deductions and contributions.
Employee refunds when they’re opted out
If you have:
- already sent us deductions from your employee’s pay, Inland Revenue will refund your employee their deducted contributions
- not paid your employee’s deductions to Inland Revenue yet, refund them to your employee.
Do not refund your employee their deductions if you’ve already paid them to us. They’ll end up getting 2 refunds for the same amount.
Your refunds when your employee opts out
Inland Revenue will refund you any compulsory employer contributions you’ve made, if you have no amounts owing to them.
You’ll need to ask for a refund of any employer superannuation contribution tax (ESCT) you’ve paid on compulsory employer contributions. You can do this by either:
- completing an Employment information amendments – IR344 form
- contacting Inland Revenue directly.
Amend an employer information return
Opt a new employee out of KiwiSaver
If you have any queries around payroll, feel free to contact us.