Q: From 1 July 2024, as part of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill, which received Royal Assent on 28 March 2024, employees may now receive Kiwisaver contributions while receiving their government paid parental leave payments.
IRD site states that employer contributions will also be made, however, it’s not clear if employer/ government will pay the 3% and if this will attract ESCT. KiwiSaver and paid parental leave (ird.govt.nz)
Can you please confirm if this part of payroll or IRD will be handling this payments?
Employer Contributions
From 1 July 2024, if you choose to have KiwiSaver deductions from your paid parental leave payments, employer contributions of 3% will also be made.
A: Here is the response we have received from IRD:
“IR will essentially be the ‘Employer’ that will be making the contributions during the period that Paid Parent leave is paid. There is not a requirement for the contractual Employer to maintain records or provide any administration effort.”
So not paid by the employer.