Businesses Still in the Dark on Kiwisaver

Media release: Monday 25 June 2007

Businesses Still in the Dark on Kiwisaver

Just one week out from the introduction of KiwiSaver, a majority of employers still feel they need more information on the new workplace savings scheme, according to a snapshot of businesses taken by New Zealand's leading business management solution provider, MYOB.

A nationwide survey of over 300 businesses of all kinds, conducted last week by MYOB, found that almost 60% of respondents felt they still needed more information to understand their KiwiSaver obligations.

And despite the release of the initial KiwiSaver employer packs and the launch of a nationwide advertising campaign, almost 20% of businesses surveyed said they were now more confused than ever.

MYOB managing director Matt Lynch says the widespread uncertainty, particularly over the new scheme's compliance requirements, has become a real issue for local businesses.

"As 1 July draws closer, more and more employers are realising that they are not prepared to manage the implementation of KiwiSaver in their business," says Matt Lynch.

"Without more help, it seems a majority of businesses are going to struggle to meet their compliance requirements."

Mr Lynch says MYOB has been working with local businesses for the past six months to provide education and training about KiwiSaver, as well as providing an online guide to the new scheme.

"The nationwide seminar series we have been running on KiwiSaver, in conjunction with ASB Group Investments and the Department of Labour, has been our most popular to date, attracting thousands of business people across the country."

"We're also about to launch a KiwiSaver User Guide to our customers, with a step-by-step guide to implementing KiwiSaver using MYOB payroll solutions," says Matt Lynch.

MYOB is currently the country's largest payroll provider, helping pay over 600,000 New Zealand employees. The company has been working with the IRD to ensure its latest payroll products and services are KiwiSaver compliant.

"The real issue, however, is for those businesses who aren't using an automated payroll product or payroll provider and are struggling to understand the new scheme," says Matt Lynch.

"They are going to need some more help – and soon."

ENDS

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