How Do I Record A KiwiSaver Opt-Out With The Correct Late Opt-Out Reason?

A new employee can opt out of KiwiSaver between days 14 and 56 after starting. If they opt out outside that window, the opt-out is treated as a late opt-out and a reason must be supplied to Inland Revenue.

How to record an opt-out

1. Open the employee and go to the KiwiSaver tab.
2. Tick Opt-out.
3. Enter the opt-out signature date (the date the employee signed the KS10).
4. If the opt-out is outside the 14 to 56 day window, select a late opt-out reason.
5. Save the employee.

Late opt-out reasons

• Employer did not provide a KiwiSaver information pack within 7 days.
• Inland Revenue did not provide an investment statement on request.
• Employer did not give the KS3 to the employee within 7 days.
• Events outside the employee's control prevented opt-out within the window.
• Employee did not intend to join KiwiSaver and was incorrectly enrolled.

If the reason is events outside control or other, enter a short note explaining the circumstances so Inland Revenue can process the late opt-out.

What Lightning Payroll does after opt-out

• Stops deducting employee contributions from the next pay.
• Stops applying employer contributions and ESCT.
• Includes the opt-out details in the next Employee Details submission.
• Refunds any contributions deducted in the current period are managed through Inland Revenue, not the payroll.