Q: We are aware that employee may be on Kiwisaver contribution holiday. However, can we stop Kiwisaver deduction/contribution permanently based on employee’s request.
A: If an employee is on a savings suspension (new name for this) then you must have received a letter from IRD or the employee has provided a copy of the letter. No you do not act on an instruction from the employee only IRD can confirm this.
We have an employee who is on savings suspension until Jan. 26, 2023. It is a monthly payroll. We didn’t processed any Kiwi for the month of January since it only has 4 days left and will resume the Kiwisaver on February. Do we need to pro-rate the Kiwisaver for 4 days? Or what we did is correct. Are you able to provide link related to this?