Casual Staff and Kiwisaver

Q: We are about to employ three casual staff for the next six weeks.

We are under the impression that if they are over 25 we will need to make KiwiSaver deductions. Are we required to make KiwiSaver deductions are are these optional for the casual employee

A: If they are true casuals: (as and where required, no expectation to work and no pattern of continuous employment) then they do not have to be automatically enrolled.  If they will be working every week then it may be better to put them on a fix term agreement.

Here is more about KiwiSaver and temp/casual employees:

Usually, you do not automatically enrol temporary employees you’re employing for 28 days or less.

The 28 days is their period of employment, not the number of days or hours they work. For example, if your employee has a 2 week contract but only works Tuesdays and Thursdays, their period of employment is 14 days employment not 4 days.

If they’re eligible, they can choose to opt into KiwiSaver.

A temporary employee is an employee who:

  • is employed to work ‘as and when required’, without a specific end date
  • starts their period of employment each time they are engaged to work, and
  • stops working each time that engagement ends.

Applying the 28-day rule to enrolment

If you engage your employee for future work and their current engagement has not ended, the combined engagements are 1 period of employment. 

As long as each period of employment remains 28 continuous days or less, then you do not have to automatically enrol them.

You must automatically enrol them if their employment is extended beyond 28 days. This applies from the date you decide to extend their contract.

Casual employees

You do not have to automatically enrol your casual employees who:

are engaged on an irregular and intermittent basis

get holiday pay with their wages.

They can opt in through you or a scheme provider.  

 

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