IRD KiwiSaver Statement : Voluntary vs Compulsory contributions

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Inland Revenue provide a KiwiSaver Statement of Account to employers.  You may notice that the KiwiSaver Employer Contribution that you pay each month is shown split into a Voluntary and Compulsory contribution.    

Inland Revenue have provided the following response: 

From 1 April 2012 all employer contributions are now liable for tax. The 2% ESCT exemption on employer contributions paid to a KiwiSaver Scheme or complying fund has been removed.

Voluntary contributions are shown on your statement of accounts due to our system calculation process. As we are unable to determine what ESCT rate you have deducted your contributions by we have attributed a portion of your employer contribution as voluntary. This is to stop you from being seen as under-calculating your employer contributions and failing to meet your employer obligation.

If you require any further information regarding KiwiSaver please call 0800 549 472 Mon- Fri 8am - 6.30pm or visit kiwisaver.govt.nz

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