Kiwisaver FAQ's for the Self Employed
If you are self-employed and aren’t paid through the PAYE system you can still join KiwiSaver by opting in and receive the savings incentives provided by the government. You’ll need to sign up using an application form from Grosvenor.
What contributions are required?
If you’re not receiving salary or wages with PAYE deducted then a 4% or 8% contribution rate doesn’t apply. You can essentially make whatever KiwiSaver contributions you like. For the Grosvenor KiwiSaver Scheme there is no initial contribution required, and unlike other scheme providers there is also no minimum amount for ongoing contributions.
Contributions can be made via IRD using one of three methods: 1. Using the “Pay tax” option on your bank’s internet banking facility 2. Paying over the counter at a Westpac branch 3. Sending a cheque to Inland Revenue You can also contribute directly to Grosvenor via direct debit or via the bill payment facility on internet banking. |
What if I receive salary as well as drawings from my business?
If you join KiwiSaver you’ll have to contribute 4% or 8% from your salary, and you can make voluntary contributions from your drawings if you wish too. From 1 April 2008 the business must contribute employer contributions (tax free to you) on top of your salary. Furthermore, to offset the cost of the employer contributions the business should be eligible to receive tax credits of up to $20/week.
Most people will be eligible for the tax credit if they make personal contributions to KiwiSaver, although there are some exceptions:
-People aged under 18
-People who are eligible to withdraw from KiwiSaver because they are over 65 and have been in KiwiSaver for more than 5 years