f
TAGS
H

I am under 18 and enrolled in KiwiSaver. Do I have to make employee contributions?

YES.

If you're under 18 and enrolled in a KiwiSaver scheme. As part of the Government 2012 Budget, the tax credit for children was repealed from 1 April 2012 and the entitlement to claim it was withdrawn in May 2012.

This tax credit covered the tax on your first $2,340 of income from employment, so your employer may not have deducted PAYE or reduced the amount of PAYE deducted from your pay.

This means if you:

are under the age of 18;
receive salary or wages, and
are an existing KiwiSaver member

you must make KiwiSaver employee contributions.

Remember, that if you purchase a house in the future, you can withdraw your contributions to put a deposit on your first home, and may be eligible to the Government First Home Buyers Grant through KiwiSaver.

You still do not receive the Governments Matching Tax Credit until you reach age 18 and your employer is not required to make an employer contribution until you are aged 18.

If you have any other KiwiSaver Questions, Ask us a KiwiSaver Question
If you have any thoughts or opinions that you would like to share, visit us at our Twitter, Facebook or Linked In pages, and comment.



 

This product has been added to your cart

CHECKOUT