Salary Sacrifice

Overview

This guide explains how to configure a salary sacrifice in AgriSmart when an employee’s total remuneration package includes the employer KiwiSaver contribution.

This setup ensures:

• The employee’s total remuneration package is preserved
• PAYE and deductions are calculated correctly
• Payslips clearly show the salary sacrifice component
• The setup remains compliant and auditable

Set up

1. If you are not currently in the employee’s profile, hover over Setup and click Team Manager. If you are already in the employee’s profile, skip to step 3.
2. Locate the employee in the table and click on their name.
3. Open the Employment Details tab.
4. Enter the employee’s salary or hourly rate including the employer KiwiSaver contribution.
   • Example:
     • $52,000 per annum (including KiwiSaver) → enter $52,000
     • $25.00 per hour (including KiwiSaver) → enter $25.00
5. Click into the Payroll tab.
6. Scroll to Other Deductions and click the + icon to add a new deduction.
7. Enter the following details (leave all others blank or at their default values):
   • Tick Before Tax.
   • Deduction Type: Percent Per Pay Period
   • Percent Per Pay Period: 3
   • Category: Salary Sacrifice
     • If this category does not exist, create it (see help article here).
   • Description: e.g. KiwiSaver Employer Contribution
   • Start Date: Employment start date or the date the employee opted in
8. Click Save.

How the calculation works

The salary sacrifice amount will automatically appear on the employee’s payslip. Examples are shown below.

• Salaried employee
  • $52,000 per annum, paid weekly
  • Weekly gross: $1,000
  • Gross after salary sacrifice: $1,000 ÷ 1.03 = $970.87
  • Salary sacrifice: $29.13 per week
• Hourly employee
  • $25.00 per hour × 40 hours = $1,000
  • Gross after salary sacrifice: $1,000 ÷ 1.03 = $970.87
  • Salary sacrifice: $29.13 for the week

If an employee’s pay varies, the salary sacrifice amount will automatically adjust each pay run.