Answer
On a final pay, Lightning Payroll only deducts KiwiSaver from items that count as wages. Redundancy and retirement payments are excluded, so they do not generate employee or employer KiwiSaver contributions or ESCT.
What does trigger KiwiSaver on a final pay
- Unused annual holidays cashed out at termination.
- The 8% accrual portion.
- Unused alternative holidays paid out.
- Payment in lieu of notice (treated as wages).
- Ordinary wages for the final pay period.
What does not
- Redundancy payments.
- Retirement payments.
- Other ex gratia lump sums entered in the additional amounts field.
How the wizard handles this
When you tick Terminate this employee, the termination wizard recalculates KiwiSaver and ESCT for the pay using only the wages-like components. If the employee's KiwiSaver line looks lower than expected, the redundancy or retirement amount is the reason.
If you need to override the calculated KiwiSaver amount for an unusual case, you can adjust the KiwiSaver pay item manually before saving the pay.
