Membership options
Fisher Funds KiwiSaver for Self Employed
If none of your income is subject to PAYE then you are considered self employed for KiwiSaver.
By joining KiwiSaver you'll be able to take advantage of the following incentives:
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A one-off $1,000 kickstart from the Government just for joining KiwiSaver |
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For every $1.00 you contribute the Government will contribute $0.50 up to a maximum of $1042.86 per KiwiSaver year (equivalent to $10 per week) if you are over 18 |
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First home assistance programs (if eligible) |
Self employed deal directly with the scheme provider they choose - instead of going through the IRD. It is probably the most flexible way of being a Kiwisaver member. You don't have to contribute a fixed % of your income and you can contribute when and how much you like. Most self employed people ensure they contribute at least $20/week (or $1,043 p.a.) to ensure they maximise the Government matching contributions. Learn more about member tax credits here.
Because the self-employed do not technically have an employer they are not eligible for the employer contribution or the tax break on the employer's contribution. If you are an employee at one workplace (despite being self-employed at another) then you are an employee for the purposes of the KiwiSaver Act. The minimum compulsory employee contribution is 2%.
Take a look at this document summarising KiwiSaver for self-employed people.
Would I be better off KiwiSaver-wise if my business was a
limited liability company?
If you were paid by a company the main changes would be:
- the employers contribution of 2% would effectively be tax-free
- your contributions would be passed through the IRD
You will need to discuss the financial and other implications of forming a company with your accountant or financial adviser.